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
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