R-3061-2-12RESOLUTION NO. 3061-2-12(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE OF
ATMOS ENERGY CORP., MHD-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 FOR 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 Allen ("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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
' SECTION 1. 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. 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. The City's reasonable rate case expenses shall be reimbursed by Atmos.
SECTION 4. 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. This Resolution shall take effect upon its passage
' DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIq
COUNTY, TEXAS, ON THIS THE 14ra DAY OF FEBRUARY, 2012.
;";9/ 1
Stephen T rrell, MAYOR
ATTEST:
Shelley B. George, RMC, CITY S TARY
Resolution No. 3061-2-12(R), Page 2