2020-92 - RTOWN OF PROSPER, TEXAS
RESOLUTION NO. 2020-92
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS SUSPENDING THE JANUARY 23, 2021 EFFECTIVE DATE OF
COSERV GAS, LTD.'S REQUESTED INCREASE TO PERMIT THE TOWN TIME
TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES;
APPROVING COOPERATION WITH OTHER CITIES IN THE COSERV GAS,
LTD. SERVICE AREA; HIRING LEGAL AND CONSULTING SERVICES TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; AUTHORIZING INTERVENTION IN DOCKET OS-
20-00005136 AT THE RAILROAD COMMISSION; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE
PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, on or about November 13, 2020, CoSery Gas, Ltd. ("CoServ" or "Company"),
pursuant to Gas Utility Regulatory Act § 104.102, filed with the Town of Prosper ("Town") a
Statement of Intent to change gas rates in all municipalities exercising original jurisdiction within
the Company's service area, effective January 23, 2021; and
WHEREAS, the Town is a gas customer of CoSery and a regulatory authority with
exclusive original jurisdiction over the rates and charges of CoSery within the Town; and
WHEREAS, it is reasonable for the Town of Prosper to cooperate with other similarly
situated cities in conducting a review of the Company's application and to hire and direct legal
counsel and consultants and to prepare a common response and to negotiate with the Company
and direct any necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities
the right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, CoSery has filed an application with the Railroad Commission, Docket No.
OS-20-00005136 that could become the docket into which appeals of city action on the CoSery
filing are consolidated; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by Cities
in ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
Resolution No. 2020-92, Page 1
SECTION 1
That the January 23, 2021, effective date of the rate request submitted by CoSery on or
about November 13, 2020, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
SECTION 2
That the Town is authorized to cooperate with other cities in the CoSery service area to
hire and direct legal counsel and consultants, negotiate with the Company, make
recommendations to the City regarding reasonable rates and to direct any necessary
administrative proceedings or court litigation associated with an appeal of a rate ordinance and
the rate case filed with the City or Railroad Commission.
SECTION 3
That, subject to the right to terminate employment at any time, the Town of Prosper hereby
authorizes the hiring of Thomas Brocato of the law firm of Lloyd Gosselink Rochelle & Townsend,
P.C., and consultants to represent the Town in all matters associated with the CoSery Gas
application to increase rates and appeals thereof.
SECTION 4
That intervention in Railroad Commission Docket No. OS-20-00005136 is authorized.
SECTION 5
That the Town's reasonable rate case expenses shall be reimbursed by CoServ.
SECTION 6
That it is hereby officially found and determined that the meeting at which this Resolution
is passed is open to the public as required by law and the public notice of the time, place, and
purpose of said meeting was given as required.
SECTION 7
A copy of this Resolution shall be sent to CoServ, care of Charles Harrell, CoSery Gas,
Ltd. 7701 South Stemmons Freeway, Corinth, Texas 76210 (CHarrell@coserv.com), and to
Thomas Brocato at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite
1900, Austin, Texas 78701 (tbrocato@lglawfirm.com).
SECTION 9
This Resolution shall be effective from and after its passage by the Town Council.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THIS 8TH DAY OF DECEMBER, 2020.
Resolution No. 2020-92, Page 2
Ray Smith, M yor
ATTEST:
Melissa Lee, Tov6n Secretary
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
Resolution No. 2020-92, Page 3