HomeMy Public PortalAboutResolution No. 271-06 06-27-2006 • RESOLUTION N0.271-06
A RESOLUTION OF THE CITY OF RICHLAND HILLS, 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 REIMBURSE 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 RESOLUTION
TO THE COMPANY AND LEGAL COUNSEL; AND FINDING THAT
THE MEETING AT WHICH THIS RESOLUTION IS ADOPTED IS OPEN
TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Richland Hills, 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
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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 Com>:nission
as part 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 RESOLVED BY THE CITY COUNCIL OF THE
• CITY OF RICHLAND HILLS, TEXAS:
SECTION 1. That 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. That the reduction to current rates previously adopted by the City pursuant
to ordinance or agreement with the Company is just and reasonable.
SECTION 3. That 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. That 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.
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• SECTION 5. That a copy of this Resolution 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. That it is hereby officially found and determined that the meeting at which
this Resolution 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.
DULY PASSED and approved by the City Council of the City of Richland Hills, Texas,
on this the 27th day of June 2006.
APPRO
~ .,~~~''~c~~~:NO yi
L. Ragan
O ~ . Mayor
~
~ I . ATTEST:
i Sutter, TRMC
Ci y Secretary
APPROVE AS O FORM:
Jv/ ~
Tim G. Sralla
City Attorney
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