HomeMy WebLinkAboutRES 2006-035 RESOLUTION NO. 2006-35
A RESOLUTION BY THE CITY OF GRAPEVINE, TEXAS
SUSPENDING THE MAY 30, 2006, EFFECTIVE DATE OF
THE PROPOSAL BY ATMOS ENERGY CORP., MID-TEX
DIVISION TO IMPLEMENT INTERIM GRIP RATE
ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN 2005;
AUTHORIZING PARTICIPATION WITH THE GAS
STANDING STEERING COMMITTEE IN A REVIEW AND
INQUIRY INTO THE SUFFICIENCY OF THE FILING AND
THE BASIS AND REASONABLENESS OF THE
PROPOSED RATE ADJUSTMENTS; AUTHORIZING
INTERVENTION IN ADMINISTRATIVE AND COURT
PROCEEDINGS INVOLVING THE PROPOSED GRIP
RATE ADJUSTMENTS; REQUIRING REIMBURSEMENT
OF REASONABLE LEGAL AND CONSULTANT
EXPENSES; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL -
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas ("City") is a gas utility customer of
Atmos Energy Corp., Mid-Tex Division, ("Atmos Mid-Tex" or "the Company") and a
regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad
Commission of Texas ("Railroad Commission") on or about March 30, 2006, proposing
to implement interim rate adjustments ("GRIP rate increases"), pursuant to Texas
Utilities Code § 104.301, on all customers served by Atmos Mid-Tex, effective May 30,
2006; and
WHEREAS, a recent rate investigation conducted by consultants for the Gas
Standing Steering Committee has indicated that Atmos Mid-Tex is already collecting
sufficient revenues to earn its allowed return and does not require a GRIP surcharge;
and
WHEREAS, the sufficiency of the filing by Atmos Mid-Tex and its compliance
with statutory mandates is in question and needs to be determined; and
WHEREAS, ratepayers of Atmos Mid-Tex, including the City and its residents,
will be adversely impacted by the proposed GRIP rate increases; and
WHEREAS, the City and its residents could benefit from coordination with the
Gas Standing Steering Committee in a review of the reasonableness of the proposed
GRIP rate increases and joint participation in any proceedings at the Railroad
Commission related to the proposed GRIP rate increases; and
WHEREAS, the reasonable costs associated with the participation of Cities in
this rate proceeding are reimbursable from Atmos Mid-Tex;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. The May 30, 2006, effective date of the GRIP rate increases
proposed by Atmos Mid-Tex is hereby suspended for the maximum period allowed by
law to permit adequate time to investigate the sufficiency of the GRIP Rate Increase
filing, review the proposed increases, analyze all necessary information, and take
appropriate action related to the proposed increases.
Section 2. The City is authorized to cooperate with the Gas Standing Steering
Committee to hire and direct legal counsel and consultants, to negotiate with the
Company, to make recommendations to the City regarding the proposed GRIP rate
increases, and to direct any administrative proceedings or litigation associated with the
proposed GRIP rate increases.
Section 3. The City is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP rate increases.
Section 4. Atmos Mid-Tex shall promptly reimburse the City's reasonable
costs associated with the City's activities related to the proposed GRIP rate increases.
Section 5. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of
Richard T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas,
Texas 75240, and to Geoffrey Gay, legal counsel to the Gas Standing Steering
Committee, at Lloyd Gosselink, 816 Congress Avenue, Suite 1900, Austin, Texas
78701.
Section 6. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 16th day of May, 2006.
APPROVED:
William D. Tate
Mayor
RES. NO. 2006-35 2
ATTEST:
C241-
inda Huff
City Secretary
APPROVED AS TO FORM:
,
John F. Boyle, Jr.'
City Attorney
RES. NO. 2006-35 3