To find that CoServ Gas, Ltd.’s (“Company”) statement of intent to increase rates within the City should be denied; finding that the City’s reasonable rate case expenses shall be reimbursed by the Company; 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 the City’s legal counsel; and providing an effective date.  Adopted Resolution No. 2023-11-4(R)

On July 28, 2023, CoServ Gas, Ltd. (“CoServ” or “Company”), pursuant to Subchapter C of Chapter 104 of the Gas Utility Regulatory Act, filed its Statement of Intent to change gas rates at the Railroad Commission of Texas (“RRC”) and in all municipalities exercising original jurisdiction within its service area.

The Steering Committee of Cities Served by CoServ Gas, Ltd. (“CoServ Gas Cities”) engaged the services of consultants to review the Company’s filing. The consultants identified numerous unreasonable expenses and proposed significant reductions to the Company’s request. Settlement discussions are ongoing, but no agreement has been met.  Accordingly, CoServ Gas Cities’ attorneys recommend that all member cities adopt the Resolution denying the rate change. Once the Resolution is adopted, CoServ will have 30 days to appeal the decision to the Railroad Commission where the appeal will be consolidated with CoServ’s filing. The Railroad Commission will then render a decision that will apply to all of CoServ's service territory. 

All cities with original jurisdiction will need to adopt the denial resolution no later than December 7. 

This item has no financial impact. 

Approval of this item relates to the City's Strategic Plan Critical Success Factors of Excellent, Innovative, and Accountable City Government.