HomeMy WebLinkAboutR-2516-5-06RESOLUTION NO. 2516-5-06(R)
' A RESOLUTION BY THE CITY OF ALLEN, COLLIN COUNTY, TEXAS,
SUSPENDING THE MAY 30, 2006, EFFECTIVE DATE OF THE PROPOSAL BY
ATMOS ENERGY CORP., MDI-TEX DIVISION, TO U*IPLEMENT INTERIM GRIP
RATE ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN 2005;
AUTHORIZING PARTICIPATION WITH THE GAS STANDING STEERING
COMMITTEE IN A REVIEW AND INQUIRY INTO THE SUFFICIENCY OF THE
FILING AND THE BASIS AND REASONABLENESS 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 EXPENSES; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of Allen, Collin County, 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 Match 30, 2006, 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
' May 30, 2006; and,
WHEREAS, a recent rate investigation conducted by consultants for the Gas Standing Steering Committee
has indicated that Atmos Mid -Tex is already collecting sufficient revenues to earn its allowed return and does
not require a GRI' surcharge; and,
WHEREAS, the sufficiency of the filing by Atmos Mid -Tex and its compliance with statutory mandates is in
question and needs to be determined; 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, the City and its residents could benefit from coordination with the Gas Standing Steering
Committee in a 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 reasonable costs associated with the participation of Cities in this rate proceeding are
reimbursable from Atmos Mid -Tex.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The May 30, 2006, 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 the Gas Standing Steering Committee 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 activities related to the proposed GRIP rate increases.
SECTION 5. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Richard T. Reis, at Atmos
Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, legal
counsel to the Gas Standing Steering Committee, at Lloyd Gosselink, 816 Congress Avenue, Suite 1900,
Austin, Texas 78701.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 9TH DAY OF MAY, 2006.
APPROVED:
Stephen Terrell, MAYOR
' APPROVED AS TO FORM: ATTEST:
Peter G. Smith, MY ATTORNEY Shelley B. Geo CITY SECRE ARY
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Resolatlon No. 2516-5-06(R). Page 2