HomeMy WebLinkAboutOrdinances (O-05-1534)-07/19/2005
ORDINANCE 0-05-1534
AN ORDINANCE OF THE CITY OF COLLEYVILLE, TEXAS, DENYING THE
REQUEST OF ATMOS ENERGY CORP., MID-TEX DIVISION, FOR AN ANNUAL
GAS RELIABILITY INFRASTRUCTURE PROGRAM ("GRIP") RATE INCREASE;
AUTHORIZING INTERVENTION AS PART OF THE COALITION KNOWN AS THE
, A TMOS CITY STEERING COMMITTEE IN ANY APPEAL OF THE CITY'S ACTION
TO THE RAILROAD COMMISSION; APPROVING COSTS INCURRED AS
REASONABLE AND REQUIRING PROMPT REIMBURSEMENT OF COSTS;
FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN
TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS
ORDINANCE TO ATMOS ENERGY CORP., MID-TEX DIVISION.
WHEREAS, on or about December 17, 2004, Atmos Energy Corp., Mid-Tex Division,
(the "Company") filed with the City of Colleyville ("City"), a request
pursuant to Texas Utilities Code 9 104,301 for an annual gas reliability
infrastructure program ("GRIP") rate increase for the Company's gas utility
customers located within the City, effective February 15, 2005; and
WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's
request as it pertains to the distribution facilities located within the City,
pursuant to Texas Utilities Code 99102,001(b) and 103.001; and
WHEREAS, the City timely acted to suspend the effective date of Atmos' proposed rate
increase; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right
to intervene in rate proceedings filed at the Railroad Commission
("Commission"); and
WHEREAS, the City can most efficiently participate in any appeal of this Ordinance to
the Commission as part of the Atmos Cities Steering Committee ("ACSC");
and
WHEREAS, the Texas Utilities Code 9 1 03.022 provides that costs incurred by the City
in ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, ACSC's rate case expenses incurred in this proceeding are reasonable
and should be reimbursed by the Company; and
WHEREAS, counsel for ACSC, upon review of the Company's filing and upon
consultation with various consultants, recommends finding that the
Company's proposal is unjustified, unreasonable and is not in compliance
with the GRIP statute (Texas Utilities Code 9 104.301) either in fact or in
law; and
Ordinance 0-05-1534
Page 2 of 3
WHEREAS, information provided by the Company indicates that the Company has
decreased per-customer investment in infrastructure and substantially
increased shareholder profits above the levels approved by the
Commission in Gas Utilities Docket No. 9400; and
WHEREAS, in consideration of the city taking action before August 12, 2005, on the
currently pending GRIP request, the Company has agreed not to file any
additional GRIP requests before September 15, 2005.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1.
Sec. 2.
Sec. 3.
Sec. 4.
Sec. 5.
Sec. 6.
Sec. 7.
THAT the Company's GRIP rate increase request is found to be
unjustified, unreasonable and in violation of the GRIP statute and is
therefore denied in all respects.
THAT the City is authorized to cooperate with other Cities within the
Company's Distribution System that have formed ACSC 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 litigation associated with an appeal of this ordinance to the
Commission.
THAT the costs incurred by ACSC in reviewing the Company's GRIP
request and representing ACSC in this proceeding are hereby found to be
reasonable and, upon submission to the Company, shall be promptly
reimbursed by the Company.
THAT the City is authorized to intervene in any appeal of the City's action
filed at the Commission, and to participate in any such appeal as a
member of ACSC.
THAT the City Manager, on behalf of the City Council, is authorized any
contracts and agreements related to the GRIP request.
THAT this Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
THAT it is hereby officially found and determined that the meeting at which
this Ordinance is passed 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.
Ordinance 0-05-1534
Page 3 of 3
Sec. 8.
THAT a copy of this ordinance, constituting final action on the Company's
application, shall be forwarded to the appropriate designated
representative of the Company within 10 days as follows: Richard Reis,
Manager, Gas Regulation, Atmos Energy Corp., Mid-Tex Division, Lincoln
Center II, 18th Floor, 5420 LBJ Freeway, Dallas, Texas, 75240.
AND IT IS SO ORDERED.
The first reading and public hearing being conducted on the /~~ day of
~ 2005.
The second reading and public hearing being conducted on the 19~ day of
-M 2005.
CITY OF COLLEYVILLE
Cynthia Singleton, TRMC
City Secretary
~~o
Mayor
APPROVED AS TO FORM AND LEGALITY:
~ \no ~
Matthew C.G. Boyle
City Attorney