HomeMy WebLinkAbout1-13-2005-14.15 - Resolution - 01/13/2005RESOLUTION NO. 1-13-2005-14.15
A RESOLUTION BY THE CITY OF COLLEGE STATION, TEXAS
SUSPENDING THE PROPOSAL BY ATMOS ENERGY CORP. TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INVESTMENT IN 2003; AUTHORIZING PARTICIPATION WITH OTHER
CITIES SERVED BY ATMOS ENERGY CORP., MID-TEX DIVISION, IN A
REVIEW AND INQUIRY INTO THE BASIS AND REASONABLENESS OF
THE PROPOSED RATE ADJUSTMENTS; AUTHORIZING INTERVENTION
IN ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE
PROPOSED GRIP RATE ADJUSTMENTS: DESIGNATING A
REPRESENTATIVE OF THE CITY TO SERVE ON A STEERING
COMMITTEE; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL
AND CONSULTANT EXPENSES
WHEREAS, the City of College Station, Texas I"City"l is a gas utility customer of
Atmos Energy Corp., Mld-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") in December, 2004, proposing to implement interim rate
adjustments ("GRIP Rate lncreases"~ pursuant to Texas Utilities Code § 104.301 on all
customers served by Atmos Mid-Tex; and
WHEREAS, Atmos Energy Corporation has ropot~ed a twenty percent increase in profits
for ~ts fiscal year ended September 30, 2004. and projects further increases in profits in 2005;
and
WHEREAS, in May, 2004. the Railroad Commission entered its Final Order in GUD
No. 9400 authorizing a rote increase that will produce additional annual revenues of $I 1.5
million for Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex has projected that it will experience annual cost savings of
at least $40 million over the costs included in rates approved in GUD No. 9400 and said savings
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RES OLUTION NO. I- 13 °2005-14. ! 5 Page 2
arc likely to greatly exceed the annual revenue requirement associated with any reasonable
increases in invested capital that form the basis of the proposed GRIP rate increases: 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, the C~ty and its residents could benefit from coordination with other cities
served by Atmos Mid-Tex ('~Cities'l in a 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 reasonable costs associated with the participation of Cities m th~s rate
proceeding are reimbursable from Alrnos Mid-Tex; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS, THAT:
1. The February 15, 2005, effective date of the GRIP Rate Increases proposed by
Atmos M~d-Tex is hereby suspended to permit adequate time to review the proposed increases,
analyze all necessary information, and take appropriate action related to the proposed increases.
2. The City is authorized to cooperate w~th other Cities to create and participate in a
Steering Committee to hire and direct legal counsel and consultants, to negotmte with the
Company, to make recommendations to the City regarding the proposed GRIP Rate Increases,
and to direct any adminislrative proceedings or litigation associated with the proposed GRIP
Rate Increases.
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RESOLUTION NO.1 - 13-2005-14.15 Page 3
3. The C~ty is authorized to intervene in any administrative proceedings or ht~gatlon
associated with the proposed GRIP Rate Increases, including GUD No. 9560, the Company's
proposed GRIP rate increase for its pipeline system filed at the Railroad Commission.
4. The City hereby designates Harvey Cargill as a representative to a Cities' Steering
Committee that shall direct the efforts of counsel and consultants.
5. Atmos Mid-Tex shall promptly reimburse the City's reasonable costs associated
with the City's activities related to the proposed GRIP Rate Increases.
Signed this 13th day of January , 2005.
APPROVED:
ATTEST:
CONNIE HOOKS, City Secretary
APPROVED:
City Attorney
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