HomeMy WebLinkAboutItem 12 - Atmos GRIP IncreaseAtmos Grip Increase
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS SUSPENDING THE JULY 30,
2007 EFFECTIVE DATE OF THE PROPOSAL BY ATMOS
ENERGY CORP., MID-TEX DIVISION TO IMPLEMENT
INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INVESTMENT IN 2006; AUTHORIZING PARTICIPATION
WITH THE ATMOS CITIES STEERING COMMITTEE
("ACSC") IN A REVIEW AND INQUIRY INTO THE
SUFFICIENCY OF THE FILING AND THE BASIS 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
RATEMAKING COSTS; 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 May 31, 2007, 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 July 30, 2007;
and
WHEREAS, Atmos Mid -Tex was recently granted a rate increase as a result of
its filing in GUD No. 9670, in which the Final Order was only signed on March 29, 2007;
and
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid -Tex had
inappropriately included certain expenditures in its prior GRIP rate increases for rate
years 2003, 2004, and 2005; and
WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine
this latest GRIP filing to determine its compliance with the Texas Utilities Code; 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, it is advantageous for the City and its citizens to coordinate the
City's response to Atmos' filing with similarly situated municipalities; and
WHEREAS, it is efficient and cost beneficial for the City to again coordinate
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 Executive Committee of ACSC has recommended suspension
and established a budget for evaluation of the Atmos filing; and
WHEREAS, a GRIP proceeding involves rate making, entitling cities to
reimbursement of reasonable rate case expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, THAT:
Section 1. The July 30, 2007 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 ACSC 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 ratemaking activities related to the proposed GRIP rate
increases.
Section 5. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of
Charles R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink,
816 Congress Avenue, Suite 1900, Austin, Texas 78701.
Section 6. 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 17th day of July, 2007.
RES. NO. 2
ATTEST:
APPROVED AS TO FORM: