R-2635-6-07RESOLUTION NO. 2635.E -07(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS SUSPENDING THE JULY 30, 2007 EFFECTIVE DATE OF THE
PROPOSAL BY ATMOS ENERGY CORP., MH)-TEX DIVISION TO IMPLEMENT
INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN
2006; AUTHORIZING PARTICIPATION WITH THE ATMOS CITIES STEERING
COMMITTEE ("ACSC") 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 REQUIRING DELIVERY OF THIS RESOLUTION
TO THE COMPANY AND LEGAL COUNSEL; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Allen, 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,
in which the Final Order was only signed on March 29, 2007; and,
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid -Tex had 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,
WHEREAS, the City has benefited from prior participation with the Armes Cities Steering Committee
("ACSC"); and,
WHEREAS, it is efficient and cost beneficial for the City to again coordinate 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 ALLEN,
COLLIN COUNTY, 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 htcrease 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 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.
SECTION 5. 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. This Resolution shall become effective immediately upon its passage.
U
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 26TH DAY OF JUNE, 2007.
APPROVED:
�Stephen Terrell, MAYOR
ATTEST:
ShelleyB�_�Y17.SE�X
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Resolution No. 26356-07(R), Page 2