HomeMy WebLinkAboutItem 08 - Suspend Atmos Rate IncreaseResolution suspending Atmos rate increase
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS SUSPENDING THE OCTOBER 25,
2007, EFFECTIVE DATE OF ATMOS ENERGY CORP.,
MID-TEX DIVISION REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH ATMOS CITIES STEERING
COMMITTEE AND OTHER CITIES IN THE ATMOS
ENERGY CORP., MID-TEX DIVISION SERVICE AREA TO
HIRE LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY
NECESSARY LITIGATION AND APPEALS; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES;
FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on or about September 20, 2007, Atmos Energy Corp., Mid -Tex
Division (Atmos), pursuant to Gas Utility Regulatory Act § 104.102 filed with the City of
Grapevine a Statement of Intent to change gas rates in all municipalities exercising
original jurisdiction within its Mid -Tex Division service area effective October 25, 2007;
and
WHEREAS, it is reasonable for the City of Grapevine to maintain its involvement
in the Atmos Cities Steering Committee (ACSC) and to cooperate with the 141 similarly
situated city members and other city participants of ACSC in conducting a review of the
Company's application and to hire and direct legal counsel and consultants and to
prepare a common response and to negotiate with the Company and direct any
necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory
authorities the right to suspend the effective date of proposed rate changes for ninety
(90) days; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred
by Cities in ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
g OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct
and are incorporated herein as if copied in their entirety.
Section 2. That the October 25, 2007, effective date of the rate request
submitted by Atmos on or about September 20, 2007, be suspended for the maximum
period allowed by law to permit adequate time to review the proposed changes and to
establish reasonable rates.
Section 3. That the City is authorized to cooperate with ACSC and its member
cities in the Mid -Tex service area to hire and direct legal counsel and consultants,
negotiate with the Company, make recommendations to the City regarding reasonable
rates and to direct any necessary administrative proceedings or court litigation
associated with an appeal of a rate ordinance and the rate case filed with the City or
Railroad Commission.
Section 4. That the City's reasonable rate case expenses shall be reimbursed
by Atmos.
Section 5. That it is hereby officially found and determined that the meeting at
which this Resolution is passed is open to the public as required by law and the public
notice of the time, place, and purpose of said meeting was given as required.
Section 6. That a copy of this Resolution shall be sent to Atmos, care of Joe T.
Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite
1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd
Gosselink Blevins Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-
1725.
Section 7. 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 October, 2007.
RES. NO. 2
ATTEST:
RES. NO. 3