HomeMy WebLinkAboutResolution - 2006-R0023 - Resolution Requesting An Amendment To Texas Utilities Code - 01_12_2006Resolution No. 2006-R0023
January 12, 2006
Item 6.8
TRUTH IN TEXANS' GAS
WHEREAS, historically, the governing bodies of home rule municipalities, such as the City
of Lubbock, have lawfully acted in the public interest and pursuant to the purposes expressed in
the Gas Utility Regulatory Act as the regulatory bodies to review the rates, operations and
services of gas utilities; and
WHEREAS, the regulatory authority so to act was granted by statute to locally elected
governing bodies to ensure that gas utilities in its jurisdiction establish fair, just and reasonable
rates, while providing adequate and efficient services to the local citizenry to whom the
governing body is responsible; and
WHEREAS, this system of regulatory authority and review has`'successftilly and reasonably
provided for local citizen input, protection of the local ratepayers, and oversight and scrutiny of
the gas utility's rates, services and actions by requiring public hearings before the governing
body of a municipality prior to certain actions proposed by the gas utility; and
WHEREAS, as described above the local process prior to amendment (79th Texas
Legislature, 2003) had allowed the direct participation of the customers of the gas utility to voice
their concerns to the municipality's local elected governing body of the rates, services and
practices of the gas utility; and
WHEREAS, the gas utilities, acting in their best interest and in a self-serving manner„
successfully lobbied the 79th Texas Legislature, 2003 to allow gas utilities to increase their rates
or charges incrementally and on an annual basis arguably without the benefit of regulatory
review, scrutiny and oversight by/of the local governing body as to the legitimacy of said
increase, and arguably without the requirement of a public hearing; and
WHEREAS, it appears that gas utilities are attempting to use this statute to intentionally
circumvent local control over the setting of rates and charges through the addition of the Gas
Reliability Infrastructure Program ("GRIP") in Section 104.301 of the Texas Utilities Code; and
WHEREAS, the gas utilities convinced members of the Texas State Legislature that the sole
purpose of GRIP was to allow the gas utilities to recover costs directly associated with
infrastructure such as replacing old gas pipelines and installing new gas pipelines for new
development, when the actual underlying purpose of the gas utilities' support of GRIP was to
permit the gas utilities to shift their day-to-day operating expenses to ratepayers; and
WHEREAS, the practical result of the gas utilities' lobbying efforts has been, in addition to
the recovery of legitimate expenses incurred in connection with replacing and installing gas
pipelines, improper and wrongful use of GRIP to recover normal, cost -of -business expenses that
are wholly unassociated with the replacement and installation of gas pipelines, said expenses
including the purchase of laptops, office furniture, icemakers, and general operational expenses;
and
WHEREAS, the gas utilities are attempting to use GRIP to increase their rates
incrementally and on an annual basis, bypassing substantive review and oversight by the local
citizenry and governing body, and dispensing with public hearing, or any other substantive,
meaningful regulatory review of what has been vastly increased revenue received by the gas
utility at the expense of the local ratepayers; and
WHEREAS, the City Council of the City of Lubbock finds that Section 104.301 of the
Texas Utilities Code, as currently utilized by the gas utilities, is counter to legislative intent, and
ultimately defeats the best interests of the public by effectively eliminating valuable local
oversight of a gas utility's rates, operations, and services, and in doing so is in direct
contravention to the stated purposes of the Gas Utility Regulatory Act; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
1. THAT, the City of Lubbock hereby requests that the legislature of the State of
Texas amend the Texas Utility Code by striking in its entirety Section 104.301 of the Texas
Utilities Code so that local control, scrutiny and oversight remains with the local citizenry and its
locally elected municipal governing body.
2. THAT, alternatively, Section 104.301 of the Texas Utilities Code be amended by
authorizing the indefinite suspension of any filing by a gas utility under this provision thus
unquestionably retaining the right of a municipality's governing body to protect its local
ratepayers.
3. THAT, the City of Lubbock hereby petitions its local Legislative delegation to the
Texas State Legislature to introduce and support legislation in the first to occur of the 80th
Legislative Session or the next special session, that is consistent with the findings herein, and
that will retain local control and oversight to the governing body of municipalities, cities, and
communities in Texas.
4. THAT, the City of Lubbock calls on other municipalities, cities, and communities
in the State of Texas to join the City of Lubbock in its efforts to retain and reinforce the
jurisdiction granted to local communities in the Texas Utilities Code, and to contact their local
state representatives and senators to advocate for the retention of local control, oversight and
scrutiny of gas utilities on behalf of the citizens, retirees of the State of Texas, Senior Citizens,
Families, small businesses, commercial businesses, Ag producers, agriculture, non -profits,
governmental, educational, public schools, institutions of higher learning, churches, hospitals &
medical facilities, and industrial companies.
5. THAT the Mayor appoint a committee to study the possibility and feasibility of
Lubbock Power & Light, the City's municipally owned electric utility, entering into the retail gas
distribution service business within the municipal boundaries of the city of Lubbock. This
committee shall report back to the City Council regarding all legal and financial options
associated with entering into the retail gas distribution service and will make any and all
recommendations they deem necessary concerning the feasibility and prudence of Lubbock
Power & Light entering into the retail gas distribution service, including, but not limited to, any
legislative changes the City should pursue associated with this issue.
Passed by the City Council this 12th day of January , 2006.
ATTEST:
Reb cca Garza, City Secretary
APPROVED AS TO CONTENT:
City Councilmember
District No. 3
ccdocs/Truth In Gas Companies.Res
January 13, 2006