O-2530-6-06ORDINANCE NO. 2530-6-06
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, DENYING ATMOS ENERGY CORP., MID-TEX DIVISION'S
STATEMENT OF INTENT TO INCREASE THE GAS UTILITY RATES IN THIS
MUNICIPALITY; SUPPORTING THE REDUCTION OF EXISTING NATURAL
GAS DISTRIBUTION RATES CURRENTLY CHARGED BY ATMOS MID-TEX
WITHIN THE CITY; ORDERING ATMOS MID-TEX TO REDKBURSE THE CITY
FOR ITS REASONABLE COSTS INCURRED IN RATEMAKING PROCEEDINGS
OR APPEALS OF SAID PROCEEDINGS; AUTHORIZING THE ATMOS CITIES
STEERING COMMITTEE TO ACT ON BEHALF OF CITY AND INTERVENE IN
ANY PROCEEDINGS BEFORE ADMINISTRATIVE OR JUDICIAL BODIES;
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND
LEGAL COUNSEL; FINDING THAT THE MEETING AT WHICH THIS
ORDINANCE IS ADOPTED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Allen, Texas ("City") is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and has original jurisdiction over the gas utility rates of Atmos Energy Corp., Mid -Tex Division
(the "Company"); and,
WHEREAS, the City, along with 87 other Atmos Cities Steering Committee ("ACSC") cities, exercised its
authority under §§ 103.001 and 104.151, GURA, to initiate a proceeding to determine whether the existing
rates of the Company were unreasonable or in any way in violation of any provision of law and ordered the
Company to show cause regarding the reasonableness of its existing natural gas distribution rates within the
City; and.
WHEREAS, the Company filed its rate filing package with the City in response to the City's order on or
about December 31, 2005, and the City's representatives obtained additional information from the Company
through written requests for information; and,
WHEREAS, the City's consultants and representatives, through cooperative efforts and under the direction
of the ACSC, reviewed the information and recommended that the City reduce the rates charged by the
Company within the City; and,
WHEREAS, by its own action pursuant to GURA § 104.151(a) or by procedural agreement with the
Company, the City reduced the current natural gas rates charged by the Company within the City effective
May 31, 2006; and,
WHEREAS, the Company has bonded in its existing rates with the Railroad Commission as par of its appeal
of rates set by ACSC cities; and,
WHEREAS, as part of its appeal of city rate actions taken by ACSC members, the Company filed a
Statement of Intent to Increase the Gas Utility Rates within the City effective July 5, 2006; and,
' WHEREAS, the Company's request is unreasonable based upon the information already reviewed by the
City in response to its action initiating the show cause action.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLIIN COUNTY, TEXAS, THAT:
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SECTION 1. The Statement of Intent to Increase Gas Utility Rates filed by the Company on or about May
31, 2006, and effective July 5, 2006, is hereby denied.
SECTION 2. The reduction to current rates previously adopted by the City pursuant to ordinance or
agreement with the Company is just and reasonable.
SECTION 3. The City is authorized to intervene in any appeal of the City's action filed at the Railroad
Commission of Texas and to otherwise participate in any litigation associated with the Company's rates
charged in the City, in conjunction with the ACSC.
SECTION 4. The Company shall promptly reimburse ACSC for ratemaking costs associated with the
City's activities related to the show cause proceeding and/or the denial of the Statement of Intent including
appeals to the Railroad Commission or Courts, in accordance with GURA § 103.022.
SECTION 5. A copy of this Ordinance shall be sent to the Company, care of Richard T. Reis, at Atmos
Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, legal counsel
to ACSC, at Lloyd Gosselink, P.O. Box 1725, Austin, Texas 78767-1725.
SECTION 6. It is hereby officially found and determined that the meeting at which this Ordinance is
adopted is open to the public as required by law and that public notice of the time, place and purpose of said
meeting was given as required.
SECTION 7. This ordinance shall take effect immediately from and after its passage in accordance with its
provisions of the Charter of the City of Allen, and it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 27ra DAY OF .TUNE, 2006.
APPROVED AS TO FORM:
per, -h 1,`
Peter G. Smith, CITY ATTORNEY
APPROVED:
Stephen errell, MAYOR
IV YY DIS IF
�y d�
Shelley B. George, ftMC, CITY SECRETARY
Ordinance No. 2530-6-06, Page 2