HomeMy Public PortalAboutResolution No. 263-06 04-11-2006 RESOLUTION NO. 263-06
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A RESOLUTION BY THE CITY OF RICHLAND HILLS, TEXAS
SUSPENDING THE MAY 30, 2006, EFFECTIVE DATE OF THE PROPOSAL
BY ATMOS ENERGY CORP., MID-TEX DIVISION TO IMPLEMENT
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 Richland Hi11s, 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 March 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 GRIP 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
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• 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 RICHLAND HILLS, TEXAS, THAT:
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 pern~Iit 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.
• 2. The City is authorized to coo erate with the Gas Standin Steerin Committee to
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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.
3. The City is authorized to intervene in any administrative proceedings or litigation
associated with the proposed GRIP rate increases.
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.
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
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• Geoffrey Gay, legal counsel to the Gas Standing Steering Committee, at Lloyd Gosselink, 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
Signed\th\~~~~~~~y,~~pril 2006.
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;c~ ' _ Ne a S. Stroller, Mayor
City of Richland Hills, Texas
ATTEST': ~'y'~~niun• n~~~~~`~~~\
i .Sutter, TRMC
City Secretary
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