HomeMy WebLinkAboutCity Council Resolutions (R-05-2494)-01/04/2005
RESOLUTION R-05-2494
A RESOLUTION OF THE CITY OF COLLEYVILLE TEXAS, SUSPENDING THE
PROPOSAL BY A TMOS 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 Colleyville, 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") in December, 2004, proposing to
implement interim rate adjustments ("GRIP Rate Increases") pursuant
to Texas Utilities Code S 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 are likely to greatly
exceed the annual revenue requirement associated with any
reasonable 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
Resolution R-05-2494
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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 COLLEYVILLE, TEXAS:
Sec. 1.
Sec. 2.
Sec. 3.
Sec. 4.
Sec. 5.
THAT 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.
THAT the City is authorized to cooperate with other Cities to create
and participate in a Steering Committee to 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.
THAT the City is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP Rate
Increases, including GUD No. 9560, the Company's proposed GRIP
rate increase for its pipeline system filed at the Railroad Commission.
THAT the City hereby designates Financial Analyst Kacey Bess as a
representative to a Cities' Steering Committee that shall direct the
efforts of counsel and consultants.
THAT Atmos Mid-Tex shall promptly reimburse the City's reasonable
costs associated with the City's activities related to the proposed GRIP
Rate Increases.
AND IT IS SO RESOLVED.
PASSED BY A VOTE OF S AYES, 0 NAYS AND /)
ABSTENTIONSONTHISTHE ~ DAY OF r~2005.
Resolution R-05-2494
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