HomeMy WebLinkAboutRES 2012-014 RESOLUTION NO. 2012-14
A RESOLUTION OF THE CITY OF GRAPEVINE, TEXAS
SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE
OF ATMOS ENERGY CORP., MID-TEX DIVISION
("ATMOS MID-TEX") REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH ATMOS CITIES STEERING
COMMITTEE ("ACSC") AND OTHER CITIES IN THE
ATMOS MID-TEX 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 ACSC'S LEGAL
COUNSEL AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on or about January 31, 2012, Atmos Energy Corp., Mid-Tex
Division ("Atmos Mid-Tex" or "Company"), pursuant to Gas Utility Regulatory Act
§ 104.102 filed with the City of Grapevine, Texas ("City") a Statement of Intent to
change gas rates in all municipalities exercising original jurisdiction within its Mid-Tex
Division service area, effective March 6, 2012; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under Chapter 104, §104.001 et seq. of GURA has exclusive original
jurisdiction over Atmos Mid-Tex's rates, operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it
is reasonable for the City to maintain its involvement in the Atmos Cities Steering
Committee ("ACSC") and to cooperate with the more than 150 similarly situated city
members of ACSC and other city participants 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, Atmos Mid-Tex proposed March 6, 2012, as the effective date for its
requested increase in rates; and
WHEREAS, it is not possible for the City to complete its review of Atmos Mid-
Tex's filing by March 6, 2012; and
WHEREAS, the City will need an adequate amount of time to review and
evaluate Atmos Mid-Tex's rate application to enable the City to adopt a final decision as
a local regulatory authority with regard to Atmos Mid-Tex's requested rate increase; 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.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That the March 6, 2012, effective date of the rate request submitted
by Atmos Mid-Tex on January 31, 2012, be suspended for the maximum period allowed
by law to permit adequate time to review the proposed changes and to establish
reasonable rates.
Section 2. That the City is authorized to cooperate with ACSC and its member
cities in the Mid-Tex service area and under the direction of the ACSC Executive
Committee 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 3. That the City's reasonable rate case expenses shall be reimbursed
by Atmos.
Section 4. 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 5. A copy of this resolution shall be sent to Atmos, care of David Park,
Vice President Rates & Regulatory Affairs, at Atmos Energy Corporation, Mid-Tex
Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay,
General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box
1725, Austin, Texas 78767-1725.
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 21st day of February, 2012.
RES. NO. 2012-14 2
APPROVED:
William D. Tate
Mayor
ATTEST:
Linda Huff
City Secretary
APPROVED AS TO FORM:
Douglas H. Conner, III
Assistant City Attorney
RES. NO. 2012-14 3