HomeMy WebLinkAboutItem 14 - Atmos Rate Increase DenialAtmos Rate Increase Denial Resolution
N T Ot Os
P 6-S �
RESOLUTION NO.
A RESOLUTION OF THE CITY OF GRAPEVINE DENYING
ATMOS ENERGY CORP., MID-TEX DIVISION'S
STATEMENT OF INTENT TO INCREASE THE GAS
UTILITY RATES IN THIS MUNICIPALITY; SUPPORTING
THE REDUCTION OF EXISTING NATURAL GAS
DISTRIBUTION RATES CURRENTLY CHARGED BY
ATMOS MID-TEX WITHIN THE CITY; ORDERING ATMOS
MID-TEX TO REIMBURSE THE CITY FOR ITS
REASONABLE COSTS INCURRED IN RATEMAKING
PROCEEDINGS OR APPEALS OF SAID PROCEEDINGS;
AUTHORIZING THE ATMOS CITIES STEERING
COMMITTEE TO ACT ON BEHALF OF CITY AND
INTERVENE IN ANY PROCEEDINGS BEFORE
ADMINISTRATIVE OR JUDICIAL BODIES; REQUIRING
DELIVERY OF THIS RESOLUTION TO THE COMPANY
AND LEGAL COUNSEL; AND FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS ADOPTED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas ("City") is a regulatory authority under
the Gas Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility
rates of Atmos Energy Corp., Mid -Tex Division (the "Company"); and
WHEREAS, the City, along with 87 other Atmos Cities Steering Committee
("ACSC") cities, exercised its authority under §§ 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of the Company were
unreasonable or in any way in violation of any provision of law and ordered the
Company to show cause regarding the reasonableness of its existing natural gas
distribution rates within the City; and
WHEREAS, the Company filed its rate filing package with the City in response to
the City's order on or about December 31, 2005, and the City's representatives obtained
additional information from the Company through written requests for information; and
WHEREAS, the City's consultants and representatives, through cooperative
efforts and under the direction of the ACSC, reviewed the information and
recommended that the City reduce the rates charged by the Company within the City;
and
WHEREAS, by its own action pursuant to GURA § 104.151(a) or by procedural
agreement with the Company, the City reduced the current natural gas rates charged by
the Company within the City effective May 31, 2006; and
WHEREAS, the Company has bonded in its existing rates with the Railroad
Commission as part of its appeal of rates set by ACSC cities; and
WHEREAS, as part of its appeal of city rate actions taken by ACSC members,
the Company filed a Statement of Intent to Increase the Gas Utility Rates within the City
effective July 5, 2006; and
WHEREAS, the Company's request is unreasonable based upon the information
already reviewed by the City in response to its action initiating the show cause action;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS
Section 1. That the Statement of Intent to Increase Gas Utility Rates filed by
the Company on or about May 31, 2006, and effective July 5, 2006, is hereby denied.
Section 2. That the reduction to current rates previously adopted by the City
pursuant to ordinance or agreement with the Company is just and reasonable.
Section 3. That the City is authorized to intervene in any appeal of the City's
action filed at the Railroad Commission of Texas and to otherwise participate in any
litigation associated with the Company's rates charged in the City, in conjunction with
the ACSC.
Section 4. That the Company shall promptly reimburse ACSC for ratemaking
costs associated with the City's activities related to the show cause proceeding and/or
the denial of the Statement of Intent including appeals to the Railroad Commission or
Courts, in accordance with GURA § 103.022.
Section 5. That a copy of this Resolution shall be sent to the Company, care
of Richard T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink,
P.O. Box 1725, Austin, Texas 78767-1725.
Section 6. That it is hereby officially found and determined that the meeting at
which this Resolution is adopted is open to the public as required by law and that public
notice of the time, place and purpose of said meeting was given as required.
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 20th day of June, 2006.
RES. NO. 2
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