CC Resolution No. 506 RESOLUTION NO. 506
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, EXPRESSING OPPOSITION TO HOUSTON PIPELINE COMPANY' S
REQUEST FOR INCREASE IN THE DOMESTIC GATE RATE.
WHEREAS, on January 28, 1975, the Houston Pipeline Company
filed an application with the Railroad Commission of Texas for
an increase in the domestic gate rate fixed by Order of the
Commission dated October 25, 1974 in the Gas Utilities Docket
No. 554 and for a revised gas costs adjustment from that provided
by said Order; and
WHEREAS, the Houston Pipeline Company' s application was
docketed in the Gas Utilities Docket No. 592 and partially
heard by the Railroad Commission on March 10 and 11, 1975; and
WHEREAS, on April 2 , 1975 the Railroad Commission will hear
additional evidence on this matter primarily as presented by the
City of Houston in opposition to Houston Pipeline Company' s
application; and
WHEREAS, the City of Baytown, Texas, is served by Houston
Natural Gas Company which takes its natural gas from Houston
Pipeline Company and will be affected by an increase in the
domestic gate rates in much the same manner as the City of
Houston, except that in the case of the City of Baytown in-
creases in the domestic gate rate are even more critical
because the City of Baytown in the past, in reliance on
the Railroad Commission' s practice of close scrutinization
of requests for domestic gate rate increases , authorized
Houston Natural Gas Company to automatically pass all increases
in the gate rate to its residential customers; and
WHEREAS, there appears to the City Council of the City
of Baytown that there are substantial questions concerning
Houston Pipeline Company' s application, particularly with
regard to the rate base being suggested; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS :
Section 1: THAT the City Council of the City of Baytown,
Texas, respectfully requests that the Railroad Commission of
Texas carefully examine the application of Houston Pipeline
Company for increase in the domestic gate rate and particularly,
that it carefully scrutinize the rate base which is being
proffered by the Houston Pipeline Company upon which the rate
of return of Houston Pipeline Company will be determined.
Section 2 : THAT the City Council of the City of Baytown
further urges the Railroad Commission of Texas to carefully
consider the allocation being made by Houston Pipeline
Company of revenue between the domestic and industrial
consumers and require a more equitable allocation of the
revenues between domestic and commercial consumers more
nearly reflecting the average annual consumption by the
domestic users rather than the peak day consumption of
domestic users.
INTRODUCED, READ and PASSED by the City Council of
the City of Baytown, this 27th day of March, 1975 .
TOM GENTRY, Mayor
ATTEST:
ed'y ✓
EDNA OLIVER, City Clerk
APPROVED: `/
A��ec0% W
REEL RI 3ARDSON, City Attorney