2021-27 - R - Denying the rate change application proposed by CoServ. 05.25.21 TOWN OF PROSPER, TEXAS RESOLUTION NO. 2021-27
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS DENYING COSERV GAS, LTD'S REQUESTED RATE INCREASE;
REQUIRING THE COMPANY TO REIMBURSE THE TOWN'S REASONABLE
RATEMAKING EXPENSES; FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;
MAKING FINDINGS; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND THE TOWN'S LEGAL COUNSEL; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Town of Prosper, Texas ("Town"), is a gas utility customer of CoSery Gas
Ltd. ("CoServ" or "Company"), and is a regulatory authority under the Gas Utility Regulatory Act
("GURA"), and under Chapter 104, § 104.001 et seq. of GURA, has exclusive original jurisdiction
over CoServ's rates, operations, and services within the Town; and
WHEREAS, the Town cooperated with a coalition of similarly situated cities served by the
Company that have joined together to facilitate the review and response to natural gas issues
affecting rates charged in CoServ's service area ("CoSery Gas Cities" or "Steering Committee of
Cities Served by CoSery Gas, Ltd."); and
WHEREAS, on or about November 13, 2020, the Company filed a Statement of Intent to
increase rates on a system-wide basis by $9.6 million per year, and by $8,113,409 in all
municipalities exercising original jurisdiction within its service area; and
WHEREAS, CoSery proposed March 14, 2021, as the effective date for its requested
increase in rates; and
WHEREAS, the Town passed Resolution No. 2020-92 to suspend the effective date of
CoServ's requested rate increase for ninety (90) days, the maximum period allowed by law; and
WHEREAS, the CoSery Gas Cities hired and directed legal counsel and consultants to
prepare a common response to the Company's requested system-wide rate increase and
proposed consolidation of service areas, which resulted in a conclusion that CoServ's rates are
not reasonable, the proposed consolidation of services areas is not reasonable, and a
recommendation that the rate request and consolidation be denied; and
WHEREAS, GURA § 103.022 provides that costs incurred by CoSery Gas 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:
SECTION 1
The rates proposed by CoSery to be recovered through its gas rates charged to customers
located within the Town limits are hereby found to be unreasonable and shall be denied.
Resolution No. 2021-27, Page 1
SECTION 2
CoSery shall continue to charge its existing rates to customers within the Town and that
said existing rates are reasonable.
SECTION 3
The Town's reasonable rate case expenses shall be reimbursed by the Company.
SECTION 4
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 5
A copy of this Ordinance 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 a lglawfirm.com).
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THIS 25TH DAY OF MAY, 2021.
Ray Smith, Mayor
ATTEST:
Melissa Lee, Town ecretary
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APPROVED AS TO FORM AND LEGALITY: ••' • •
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Terrence S. Welch, Town Attorney ;* . •
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TEXN'ON
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Resolution No.2021-27,Page 2