HomeMy WebLinkAboutRes 2007-07-03 Suspending the July 30, 2007 Effective Date of the Proposal by ATMOS Energy Corp.pdfCITY OF ANNA
RESOLUTION NO. ?001-o%-03
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, 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 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 ALL OTHER
REIMBURSEABLE COSTS; REQUIRING DELIVERY OF THIS RESOLUTION TO
THE COMPANY AND ITS LEGAL COUNSEL; FINDING AND DETERMINING THAT
THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of ANNA, 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, on which the Final Order was only signed on March 29, 2007; and,
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid -Tex has
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,
Cry of Anna Resolution No. 2001--o-2-0-3 Page 1 of 3
WHEREAS, the City has benefited from prior action by the Atmos Cities Steering
Committee ("ACSC"); and,
WHEREAS, it is efficient and cost beneficial for the City to consider coordinated 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
ANNA, 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 consider cooperating 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.
SECTIONS. 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. It is hereby officially found and determined that the meeting at which this
resolution was passed was open to the public as required by law.
City of Anna Resolution No. ab0?•0-0 3 Page 2 of.3
PASSED AND APPROVED by the City Council of the City of Anna, Texas this the 28"'
day of July, 2007.
Kenneth Pelham
Mayor
ATTEST:
N a Wilkisot`" I
Secretary
OF 4A',
City of Anna Resolution No. DDI) -0 -0 3 Page 3 of 3