City Challenges TXU's Rates

08-03-04 – The City of Denison is taking on energy giant, TXU, arguing their energy supplier is charging customers too much. The city is threatening to file a lawsuit if the company does not provide documents, proving the need for rate increases.

In a complaint issued Monday afternoon, The Denison City Council, challenges the rates set by TXU’s electric supplier, TXU Transmission and Delivery. The supplier controls power lines in North Texas.

John Walls, a representative for TXU Transmission and Delivery, attributes the rate increase to rising fuel costs. The city of Denison now wants to see proof of those rising costs. TXU is willing to hand over the documents, but they want the city to hold off on the rate issue for one more year when the Public Utilities Commission reviews their investments and earnings.

Denison has turned down the one year request and has resolved to move toward class action litigation. At least 79 other cities are questioning TXU’s rates. If a majority of the cities join in, Denison plans on filing suit.

The TXU-controlled cities are basing their rate concerns on a successful case in South Texas that resulted in lower electric rates for numerous cities.