HomeMy WebLinkAboutCity Council Resolutions (R-07-2860)-07/17/2007RESOLUTION R-07-2860
A RESOLUTION BY THE CITY OF COLLEYVILLE, TEXAS SUSPENDING THE JULY
30, 2007, EFFECTIVE DATE OF THE PROPOSAL BY ATMOS ENERGY CORP.,
MID-TEX DIVISION TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR
GAS UTILITY INVESTMENT IN 2006; AUTHORIZING PARTICIPATION WITH THE
ATMOS CITIES STEERING COMMITTEE (ACSC) IN A REVIEW AND INQUIRY INTO
THE SUFFICIENCY OF THE FILING AND THE BASIS 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 RATEMAKING COSTS; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL
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") on or about May 31, 2007, 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 July 30, 2007; and
WHEREAS, Atmos Mid-Tex was recently granted a rate increase as a result of its filing
in GUD No. 9670, in which the Final Order was only signed on March 29,
2007; and
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid-Tex had
inappropriately included certain expenditures in its prior GRIP rate
increases for rate years 2003, 2004, and 2005; and
WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine this
latest GRIP filing to determine its compliance with the Texas Utilities
Code; 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, it is advantageous for the City and its citizens to coordinate the City's
response to Atmos' filing with similarly situated municipalities; and
WHEREAS, the City has benefited from prior participation with the Atmos Cities
Steering Committee ("ACSC"); and
Resolution R-07-2860
Page 2 of 3
WHEREAS, it is efficient and cost beneficial for the City to again coordinate 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 Executive Committee of ACSC has recommended suspension and
established a budget for evaluation of the Atmos filing; and
WHEREAS, a GRIP proceeding involves rate making, entitling cities to reimbursement
of reasonable rate case expenses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1. THAT the July 30, 2007 effective date of the GRIP rate increases
proposed by Atmos Mid-Tex is hereby suspended for the maximum period
allowed by law to permit 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.
Sec. 2. THAT the City is authorized to cooperate with ACSC 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.
Sec. 3. THAT the City is authorized to intervene in any administrative proceedings
or litigation associated with the proposed GRIP rate increases.
Sec. 4. THAT Atmos Mid-Tex shall promptly reimburse the City's reasonable
costs associated with the City's ratemaking activities related to the
proposed GRIP rate increases.
Sec. 5. THAT a copy of this Resolution shall be sent to Atmos Mid-Tex, care of
Charles R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, legal
counsel to ACSC, at Lloyd Gosselink, 816 Congress Avenue, Suite 1900,
Austin, Texas 78701.
AND IT IS SO RESOLVED.
Resolution R-07-2860
Page 3 of 3
APPROVED BY A VOTE OF ~_ AYES, ~ NAYS AND d ABSTENTIONS
ON THIS THE ~ DAY OF 2007.
ATTEST:
%~~, ,e..,`'
Cynthia Singleton, TRMC, CMC
City Secretary
CITY OF COLLEYVILLE
David Kelly
Mayor