05-65 - O TOWN OF PROSPER ORDINANCE NO. 05-65
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS FINDING, AFTER REASONABLE
NOTICE, THAT CERTAIN RATE CASE EXPENSES OF COSERV GAS LTD. ARE
REASONABLE; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PROVIDING FOR
REPEAL OF CONFLICTING ORDINANCES
WHEREAS, on or about August 25, 2004, CoSery Gas Ltd. ("CoServ"or"Company"), filed with the Town of
Prosper a Statement of Intent to change gas rates in all municipalities within the CoSery System effective October 1,
2004; and
WHEREAS, the Town has exclusive original jurisdiction to evaluate the Company's Statement of Intent as it
pertains to the distribution facilities located within the Town, pursuant to Texas Utilities Code §§ 102.001(b) and
103.001, and
WHEREAS, the Company and the Coalition of Cities Served by CoSery ("Cities") reached an agreement as
to CoServ's filed request to increase rates; and
WHEREAS, the agreement between the Company and the Cities was finally approved by the Town of
Prosper by Ordinance No. 05-01 dated January 11, 2005; and
WHEREAS, the issue of rate case expenses incurred by the Company was severed from the Ordinance
approving the agreement;and
WHEREAS, the Town has retained jurisdiction over the rate case expense reimbursement issue as a result
of extensions of the jurisdictional deadline by CoServ, pursuant to said agreement; and
WHEREAS, the Town has previously determined that the Cities' rate case expenses are reasonable and
should be reimbursed by CoServ; and
WHEREAS, the Cities' rate case expenses do not include the expenses incurred by the City of Denton and
Denton has agreed that its rate case expenses shall be billed to the Company separately by that city and shall not be
surcharged to any customers outside the City of Denton; and
WHEREAS, the amount of rate case expenses incurred by the Company that were reasonable and
necessary are$260,041.00.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS:
SECTION 1. That the Cities' rate case expenses have previously been found to be reasonable and shall be
reimbursed promptly by the Company.
SECTION 2. That it is in the best interest of the Town and its residents to approve rate case expenses
incurred by CoSery Gas Ltd., in the total amount of $260,041.00 and only those Company expenses are hereby
found to be reasonable and necessary.
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SECTION 3. That the Company is authorized to recover the rate case expenses reimbursed to the Cities,
exclusive of those incurred by the City of Denton, and the Company's rate case expenses approved herein through a
consumption-based 12-month surcharge calculated on a system-wide basis. The surcharge shall be based upon
anticipated system-wide volumetric consumption for the calendar year 2005, estimated by the Company to be
28,949,610 Ccf.
SECTION 4. That after submission of the Cities' expenses, the Company shall calculate the surcharge and
submit the calculation to the Town. Six months after the first date on which any rate case expense surcharge is due
from customers, the Company shall submit a statement to the Town showing the amount recovered by the Company
through the surcharge and the amount remaining to be recovered. The Company shall also submit a final
reconciliation to the Town, not more than thirty (30) days after one year from the first date on which any rate case
expense surcharge is collected by the Company, to prove that the Company has not over-recovered rate case
expenses. Any over-recovery shall be promptly refunded by the Company. The Company may submit the initial
calculations and progress reports to the Cities' rate steering committee chairman and legal counsel to comply with
this provision, unless the Town makes a written request that the calculations and reports be submitted to the Town.
SECTION 5. That all relief requested by CoSery not specifically addressed herein is denied.
SECTION 6. That it is hereby officially found and determined that the meeting at which this Ordinance is
passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting
was given as required.
SECTION 7. That a copy of this ordinance, constituting final action on rate case expense issues resulting
from the CoSery Statement of Intent filed with the Town to change gas rates in all municipalities within the CoSery
System, be forwarded to the appropriate designated representative of the Company, Charles D. Harrell, Chief
Financial Officer, CoSery Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, within ten (10)days.
SECTION 8. Nothing contained in this Ordinance shall be construed now or hereafter as limiting or
modifying, in any manner, the right and power of the Town under law to regulate the rates and charges of CoSery
Gas Ltd.
SECTION 9. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the
extent of such conflict.
DULY PASSED and approved by the Town Council of the Town of Prosper, Texas, on this the 23rd day of
August, 2005.
APPROVED:
arles Nis nger,
ATTE T:
hanae Jennings, n Secretary
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