To suspend the September 1, 2023 effective date of CoServ Gas, Ltd.’s (“Company”) requested rate change to permit the City time to study the request and to establish reasonable rates; approving cooperation with other cities in the Company’s service area, and the hiring of legal and consulting services to negotiate with the Company and direct any necessary litigation and appeals; requiring reimbursement of the City’s 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. Adopted Resolution No. 2023-8-8(R)

On or about July 28, 2023, CoServ Gas, Ltd. (CoServ) filed a Statement of Intent to Increase Gas Utility Rates in all municipalities exercising original jurisdiction within CoServ's service area. In the filing, CoServ is requesting a $10.3 million increase in annual revenues in incorporated areas, which is a 7.5% increase including gas costs. CoServ has proposed an effective date of September 1, 2023.

The Gas Utility Regulatory Act permits cities to suspend the rate change for 90 days after the date the rate change would otherwise be effective.  The Resolution suspends the September 1, 2023 effective date of the Company’s rate increase for the maximum period permitted by law to allow the City of Plano, working in conjunction with other similarly situated cities with original jurisdiction served by CoServ, to evaluate the filing, to determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement, to pursue. If the City of Plano fails to take action regarding the filing before the effective date, CoServ's rate request is deemed approved. 

This item has no financial impact. 

Suspending the effective date of CoServ's requested rate change relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.