HomeMy WebLinkAboutResolution - 2024-R0306 - Rate Increase Suspension For 45 Days, West Texas Gas Utility, LLC - 07/09/2024Resolution No. 2024-R0306
Item No. 6.9
July 9, 2024
RESOLUTION
A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, ("CITY")
RESPONDING TO THE APPLICATION OF WEST TEXAS GAS
UTILITY, LLC, TO INCREASE RATES UNDER THE GAS
RELIABILITY INFRASTRUCTURE PROGRAM; SUSPENDING THE
EFFECTIVE DATE OF THIS RATE APPLICATION FOR FORTY-FIVE
DAYS; AUTHORIZING THE CITY'S PARTICIPATION IN A
COALITION OF CITIES KNOWN AS THE "ALLIANCE OF WEST
TEXAS GAS COMPANY MUNICIPALITIES;" REQUIRING THE
REIMBURSEMENT OF COSTS; DETERMINING THAT THE MEETING
AT WHICH THE RESOLUTION WAS ADOPTED COMPLIED WITH
THE TEXAS OPEN MEETINGS ACT; MAKING SUCH OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS: on or about May 17, 2024, West Texas Gas Utility, LLC ("WTG") filed for
an increase in gas utility rates under the Gas Reliability Infrastructure Program (`GRIP"),
resulting in a requested increase in the monthly customer charge from $20.62 to $21.90 for
Residential customers, and from $37.69 to $40.28 for non-residential customers (Commercial,
Public Authority, and Non -Profit); and
WHEREAS: the City has a special responsibility to exercise due diligence with regard
to rate increases of monopoly utilities who operate within its boundaries; and
WHEREAS: the application to increase rates by WTG is complex; and
WHEREAS: it is necessary to suspend the effective date for the increase in rates for
forty-five days, so that the City can assure itself that the data and calculations in WTG's rate
application are correctly done, and whether WTG's application otherwise conforms to the
requirements of Texas Utilities Code § 104.301, commonly referred to as the GRIP statute; and
WHEREAS: the effective date proposed by WTG is July 16, 2024, but a suspension by
the City will mean that the rate increase cannot go into effect prior to August 30, 2024.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS THAT:
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Section 1. That the statements and findings set out in the preamble to this resolution
are hereby in all things approved and adopted.
Section 2. The City suspends the requested effective date by WTG for forty-five days
pursuant to the authority granted the City under Section 104.301 of the Texas Utilities Code. The
City finds that additional time is needed in order to review the data and calculations that provide
the basis for the rate increase application, and to determine whether WTG's application otherwise
conforms to the requirements of the GRIP statute.
Section 3. The City shall continue to act jointly with other cities that 4e part of a
coalition of cities known as the Alliance of WTG Municipalities ("AWM").
Section 4. The City authorizes the law firm of Herrera Law & Associates, PLLC, to
act on its behalf in connection with WTG's application to increase rates.
Section 5. WTG is ordered to reimburse the City's reasonable rate case expenses
incurred in response to WTG's rate increase application within 30 days of receipt of invoices for
such expenses to the extent allowed by law.
Section 6. The meeting at which this resolution was approved was in all things
conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
Section 7. This resolution shall be effective immediately upon passage.
Passed by the City Council on July 9, 2024
ATTEST:
Courtney Paz, City Se
1 i //1/li . 1 `
MARK . MCBRAYER,
11
YOR
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APPROVED AS TO CONTENT:
- GAj,,1vL
Cheryl Brock
Interim Chief Financial Officer
APPROVED AS TO FORM:
Ain t , Deputy C' rney
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