HomeMy Public PortalAboutResolution No. 393-12 02-21-2012393-12
RESOLUTION NO.
RESOLUTION OF THE CITY OF ' ~~,,. Ki IIS
SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE
OF ATMOS ENERGY CORP., MID-TEX DIVISION
("ATMOS MID-TEX") REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST
AND TO ESTABLISH REASONABLE RATES;
APPROVING COOPERATION WITH ATMOS CITIES
STEERING COMMITTEE ("ACSC") AND OTHER CITIES
IN THE ATMOS MID-TEX SERVICE AREA TO HIRE
LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY
NECESSARY LITIGATION AND APPEALS; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES;
FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND ACSC'S LEGAL
COUNSEL
WHEREAS, on or about January 31, 2012, Atmos Energy Corp., Mid-Tex Division
("Atmos Mid-Tex" or "Company"), pursuant to Gas Utility Regulatory Act § 104.102 filed with
the City of~~ ("City") a Statement of Intent to change gas rates in all municipalities
exercising original jurisdiction within its Mid-Tex Division service area, effective March 6,
2012; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under Chapter 104, § 104.001 et seq. of GURA has exclusive original jurisdiction
over Atmos Mid-Tex's rates, operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it is
reasonable for the City to maintain its involvement in the Atmos Cities Steering Committee
("ACSC") and to cooperate with the more than 150 similarly situated city members of ACSC
and other city participants in conducting a review of the Company's application and to hire and
direct legal counsel and consultants and to prepare a common response and to negotiate with the
Company and direct any necessary litigation; and
WHEREAS, Atmos Mid-Tex proposed March 6, 2012, as the effective date for its
requested increase in rates; and
WHEREAS, it is not possible for the City to complete its review of Atmos Mid-Tex's
filing by March 6, 2012; and
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WHEREAS, the City will need an adequate amount of time to review and evaluate
Atmos Mid-Tex's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to Atmos Mid-Tex's requested rate increase; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities
the right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by
Cities in ratemaking activities are to be reimbursed by the regulated utility.
p THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
f~~a`n~ ~Jp ;11sTEXAS:
1. That the March 6, 2012, effective date of the rate request submitted by Atmos
Mid-Tex on January 31, 2012, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with ACSC and its member cities in the
Mid-Tex service area and under the direction of the ACSC Executive Committee to hire and
direct legal counsel and consultants, negotiate with the Company, make recommendations to the
City regarding reasonable rates, and to direct any necessary administrative proceedings or court
litigation associated with an appeal of a rate ordinance and the rate case filed with the City or
Railroad Commission.
3. That the City's reasonable rate case expenses shall be reimbursed by Atmos.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Atmos, care of David Park, Vice
President Rates & Regulatory Affairs, at Atmos Energy Corporation, Mid-Tex Division, 5420
LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC,
at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this ~1 day of , 2012.
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A ST: \\\\~\r\\utlllnllli///~,,~
ity Secretary ;`\~`~ `~~'/~~
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APPROVED AS TO FORM: - ~ `~=~ ` ~'
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City Attorney ~~%. ...... •' .~~~`
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