Loading...
CC Resolution No. 677 1087 RESOLUTION NO. 677 A RESOLUTION OPPOSING PROPOSED RAILROAD COMMISSION RULE 051 . 04 . 03 THAT WOULD ALLOW 100% FLOP] THROUGH OF GAS COSTS . WHEREAS , Lone Star Gas Company has filed an application with the Railroad Commission of Texas for substantive rule- making to establish a purchased gas cost recovery rule ; and WHEREAS , the purchased gas adjustment rule as proposed by Lone Star Gas Company would allow all gas utilities to recover 100% of their purchased gas costs from all sources as a matter of right ; and WHEREAS , the Railroad Commission has scheduled a hearing to receive comments on the proposed rule ; NOW THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: Section 1 : The City Council of the City of Baytown opposes the adoption of Proposed Rule 051 . 04 . 03 allowing every gas utility full recovery of all costs of purchased gas as a matter of right . Although fuel adjustment clauses may be appropriate in some cases , the unqualified right to recover energy costs minimizes the incentive to reduce the cost of fuel and limits the authority and flexibility of local ratemaking authorities to establish equitable utility rates . Further , the proposed rule fails to set adequate guidelines for determination of the reasonableness of purchased gas cost . Section 2 : A copy of this resolution shall be forwarded to Mr. Piotrowski , Jr . , Director , Railroad Commission of Texas , P. 0. Drawer 12967 , Austin , Texas 78711. Section 3 : This resolution shall take effect from and after its passage. 1088 INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the City of Baytown on this 24th day of May 1979. EMMETT 0. HUTTO, Mayor ATTEST: EILEEN HALL, City Clerk APPROVED: J ce 4 SCOTT BOUNDS, City Attorney -2-