HomeMy WebLinkAboutCity Council Resolutions (R-12-3500)-05/15/2012RESOLUTION R-12-3500
A RESOLUTION OF THE CITY OF COLLEYVILLE, TEXAS, DENYING
ATMOS ENERGY CORPORATION, MID-TEX DIVISION'S REQUESTED
RATE CHANGE; REQUIRING THE COMPANY TO REIMBURSE THE
CITY'S REASONABLE RATEMAKING 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, the City of Colleyville Texas (~~City") is a gas utility customer of
Atmos Energy Corporation, Mid-Tex Division ('~Atmos Mid-Tex"
or "Company"), and is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has exclusive original
jurisdiction over Atmos Mid-Tex's rates, operations, and
services within the City; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee
("ACSC"), a coalition of over 150 similarly situated cities served
by the Company that have joined together to facilitate the
review and response to natural gas issues affecting rates
charged in the Atmos Mid-Tex Division; and
WHEREAS, on or about January 31, 2012, the Company filed a Statement
of Intent with the cities retaining original jurisdiction within its
Mid-Tex service division to increase rates by approximately $49
million; and
WHEREAS, the City suspended the effective date of Atmos Mid-Tex's
proposed rate increase for the maximum period allowed by law
and thus extended the City's jurisdiction until June 4, 2012;
and
WHEREAS, on April 25, 2012, the Company extended the effective date for
its proposed rates by one week, which similarly extended the
City's jurisdiction until June 11, 2012; and
WHEREAS, the ACSC Executive Committee hired and directed legal counsel
and consultants to prepare a common response to the
Company's requested rate increase and to negotiate with the
Company and direct any necessary litigation; and
Resolution R-12-3500
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WHEREAS, ACSC's consultants conducted a review of the Company's
requested rate increase and found justification that the
Company's rates should be decreased; and
WHEREAS, ACSC and the Company have engaged in settlement
discussions but will be unable according to Company
representations to reach settlement in sufficient time for cities
to act before June 11, 2012; and
WHEREAS, the ACSC Settlement Committee recommends denial of the
Company's proposed rate increase in order to continue
settlement discussions pending the Company's appeal of cities'
denials to the Railroad Commission of Texas; and
WHEREAS, the GURA § 103.022 provides that costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated
utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF COLLEYVILLE, TEXAS:
Sec. 1. THAT the rates proposed by Atmos Mid-Tex to be recovered
through its gas rates charged to customers located within the
City limits, are hereby found to be unreasonable and shall be
denied.
Sec. 2. That the Company shall continue to charge its existing rates to
customers within the City and that said existing rates are
reasonable.
Sec.3. THAT the City's reasonable rate case expenses shall be
reimbursed by the Company.
Sec.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.
Resolution R-12-3500
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Sec. 5. THAT a copy of this Resolution shall be sent to Atmos Mid-Tex,
care of David Park, Vice President Rates & Regulatory Affairs,
and to Geoffrey Gay, General Counsel to ACSC.
AND IT IS SO RESOLVED.
APPROVED BY A VOTE OF ~ AYES, ~ NAYS AND ~
ABSTENTIONS ON THIS THE 15T DAY OF MAY 2012.
ATT . CITY OF COLLEYVILLE
~ ~ ~ ~
~G`"-~
nthia Singleton, TRM , David Kelly
City Secretary Mayor