HomeMy WebLinkAbout06-22-2006-14.05 - Resolution - 06/22/2006
RESOLUTION NO. 06-22-2006-14.05
A RESOLUTION OF THE CITY OF COLLEGE STATION, TEXAS DENYING ATMOS
ENERGY CORP., MID-TEX DIVISION'S STATEMENT OF INTENT TO INCREASE
THE GAS UTILITY RATES IN THIS MUNICIPALITY; SUPPORTING THE
REDUCTION OF EXISTING NATURAL GAS DISTRIBUTION RATES CURRENTLY
CHARGED BY ATMOS MID-TEX WITHIN THE CITY; ORDERING ATMOS MID-
TEX TO REIMBURSE THE CITY FOR ITS REASONABLE COSTS INCURRED IN
RATEMAKING PROCEEDINGS OR APPEALS OF SAID PROCEEDINGS;
AUTHORIZING THE ATMOS CITIES STEERING COMMITTEE TO ACT ON
BEHALF OF CITY AND INTERVENE IN ANY PROCEEDINGS BEFORE
ADMINISTRATIVE OR JUDICIAL BODIES; REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; AND FINDING THAT
THE MEETING AT WHICH THIS RESOLUTION IS ADOPTED IS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of College Station, Texas ("City") is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos
Energy Corp., Mid- Tex Division (the "Company"); and
WHEREAS, the City, along with 87 other Atmos Cities Steering Committee ("ACSC") cities,
exercised its authority under SS \03.001 and 104.151, GURA, to initiate a proceeding to
determine whether the existing rates of the Company were unreasonable or in any way in
violation of any provision of law and ordered the Company to show cause regarding the
reasonableness of its existing natural gas distribution rates within the City; and
WHEREAS, the Company filed its rate filing package with the City in response to the City's
order on or about December 31, 2005, and the City's representatives obtained additional
information from the Company through written requests for information; and
WHEREAS, the City's consultants and representatives, through cooperative efforts and under
the direction of the ACSC, reviewed the information and recommended that the City reduce the
rates charged by the Company within the City; and
WHEREAS, by its own action pursuant to GURA S \04.151(a) or by procedural agreement with
the Company, the City reduced the current natural gas rates charged by the Company within the
City effective May 31, 2006; and
WHEREAS, the Company has bonded in its existing rates with the Railroad Commission as part
of its appeal of rates set by ACSC cities; and
WHEREAS, as part of its appeal of city rate actions taken by ACSC members, the Company
filed a Statement of Intent to Increase the Gas Utility Rates within the City effective July 5,
2006; and
RESOLUTION NO. 06-22-2006-14.05
Page 2
WHEREAS, the Company's request is unreasonable based upon the information already
reviewed by the City in response to its action initiating the show cause action; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
SECTION I:
SECTION 2:
SECTION 3:
SECTION 4:
SECTION 5:
SECTION 6:
That the Statement of Intent to Increase Gas Utility Rates filed by the Company
on or about May 31, 2006, and effective July 5, 2006, is hereby denied.
That the reduction to current rates previously adopted by the City pursuant to
ordinance or agreement with the Company is just and reasonable.
That the City is authorized to intervene in any appeal of the City's action filed
at the Railroad Commission of Texas and to otherwise participate in any
litigation associated with the Company's rates charged in the City, in
conjunction with the ACSC.
That the Company shall promptly reimburse ACSC for ratemaking costs
associated with the City's activities related to the show cause proceeding and/or
the denial of the Statement of Intent including appeals to the Railroad
Commission or Courts, in accordance with GURA S \03.022.
That a copy of this Resolution shall be sent to the Company, care of Richard T.
Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas,
Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink,
P.O. Box 1725, Austin, Texas 78767-1725.
That it is hereby officially found and determined that the meeting at which this
Resolution is adopted is open to the public as required by law and that public
notice ofthe time, place and purpose of said meeting was given as required.
ADOPTED this the 22nd day
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Connie Hooks, City Secretary
APPROVED:
APPROVED:
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RON lA, Mayor
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E-Sigr.ed by HprV'ey Cargl
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City Attorney