HomeMy Public PortalAboutResolution No. 218-05 01-11-2005 RESOLUTION NO. 218-05
• A RESOLUTION BY THE CITY OF Richland xills TE
XAS
SUSPENDING THE PROPOSAL BY ATMOS ENERGY CORP. TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INVESTMENT IN 2003; AUTHORIZING PARTICIPATION WITH OTHER
CITIES SERVED BY ATMOS ENERGY CORP., MID-TEX DIVISION, IN A
REVIEW AND INQUIRY INTO THE BASIS AND REASONABLENESS OF
THE PROPOSED RATE ADJUSTMENTS; AUTHORIZING INTERVENTION
IN ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE
PROPOSED GRIP RATE ADJUSTMENTS; DESIGNATING A
REPRESENTATIVE OF THE CITY TO SERVE ON A STEERING
COMMITTEE; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL
AND CONSULTANT EXPENSES
WHEREAS, the City of R; ~1,i any u; i ~ sTexas {"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") in December, 2004, proposing to implement interim rate
adjustments {"GRIP Rate Increases") pursuant to Texas Utilities Code § 104.301 on all
customers served by Atmos Mid-Tex; and
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in profits
for its fiscal year ended September 30, 2004, and projects further increases in profits in 2005;
and
WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in GUD
No. 9400 authorizing a rate increase that will produce additional annual revenues of $11.5
million for Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex has projected that it will experience annual cost savings of
at least $40 million over the costs included in rates approved in GUD No. 9400 and said savings
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are likely to greatly exceed the annual revenue requirement associated with any reasonable
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increases in invested capital that form the basis of the proposed GRIP rate increases; 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 other cities
served by Atmos Mid-Tex ("Cities") 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.
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
• Richland Hills ,TEXAS, THAT:
1. The February 15, 2005, effective date of the GRIP Rate Increases proposed by
Atmos Mid-Tex is hereby suspended to permit adequate time to review the proposed increases,
analyze all necessary information, and take appropriate action related to the proposed increases.
2. The City is authorized to cooperate with other Cities to create and participate in a
Steering Conunittee to hire and direct legal counsel and consultants, to negotiate with the
Company, to make recommendations to the City regazding the proposed GRIP Rate Increases,
and to direct any administrative proceedings or litigation associated with the proposed GRIP
Rafe Increases.
h ~ r.~ ~irzed td intervene in any administrative proceedings or litigation
associated with the proposed GRIP Rate Increases, including GUD No. 95b0, the Company's
• proposed GRIP rate increase for its pipeline system filed at the Railroad Commission.
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4. The City hereby designates James Quin as a representative to a
Cities' Steering Committee that shall direct the efforts of counsel and consultants.
5. Atmos Mid-Tex shall promptly reimburse the City's reasonable costs associated
with the City's activities related to the proposed GRIP Rate Increases.
Signed this 11 day of January , 20 05.
May r
ATTEST:
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