HomeMy WebLinkAbout6-28-2007-2b - Resolution - 06/28/2007 RESOLUTION NO. 6-28-2007-2b
A RESOLUTION BY THE CITY OF COLLEGE STATION, 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 College Station, 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
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,
RESOLUTION NO. 6 -28- 2007 -2b Page 2
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS, THAT:
PART 1. 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.
PART 2. 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.
PART 3. The City is authorized to intervene in any administrative proceedings or litigation
associated with the proposed GRIP rate increases.
PART 4. 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.
PART 5. 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.
PASSED and APPROVED this 28 day of June, 2007.
APPROVED:
/
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MAYOR
1414 EST:
4.1.€ 4e94
City Secretary
APPROVED:
A- Signed by Harvey Cargill
City Attorney