HomeMy WebLinkAbout02-23-12-2g - Resolution - 02/23/2012
RESOLUTION NO.02-23-12' Zg
RESOLUTION OF THE CITY OF COLLEGE STATION, TEXAS SUSPENDING THE MARCH
6, 2012, EFFECTIVE DATE OF ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS
MID-TEX") REQUESTED RATE CHANGE TO PERMIT THE CITY TIME TO STUDY THE
REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION
WITH ATMOS CITIES STEERING COMMITTEE ("ACSC") AND OTHER CITIES IN THE
ATMOS MID-TEX SERVICE AREA TO HIRE LEGAL AND CONSULTING SERVICES AND
TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION
AND APPEALS; REQUIRING REIMBURSEMENT OF CITIES' RATE CASE 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, on or about January 31, 2012, Atmos Energy Corp., P._id-Tex Division ("Atmos Mid-Tex"
or "Company"), pursuant to Gas Utility Regulatory Act § 104.102 fled with the City of College Station
("City") a Statement of Intent to change gas rates in all municipalities exercising original jurisdiction
within its Mid-Tex Division service area, effective March 6, 2012; and
WHEREAS, the City is a regulatory authority under the Gas Utility regulatory Act ("GURA") and under
Chapter 104, § 104.001 et seq. of GURA has exclusive original juri'.:ction over Atmos Mid-Tex's rates,
operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it is reasonable for the City
to maintain its involvement in the Atmos Cities Steering Committee ("ACSC") and to cooperate with the
more than 150 similarly situated city members of ACSC and other city participants in conducting a
review of the Company's application and to hire and direct legal counsel and consultants and to prepare a
common response and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, Atmos Mid-Tex proposed March 6, 2012, as the effective date for its requested increase in
rates; and
WHEREAS, it is not possible for the City to complete its review of Atmos Mid-Tex's filing by March 6,
2012; and
WHEREAS, the City will need an adequate amount of time to review and evaluate Atmos Mid-Tex's rate
application to enable the City to adopt a final decision as a loca?- regulatory authority with regard to
Atmos Mid-Tex's requested rate increase; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities the right to
suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, the Gas Utility Regulatory Act § 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 COLLEGE STATION, TEXAS:
Part 1. That the March 6, 2012, effective date of the rate request submitted by Atmos Mid-Tex on
January 31, 2012, be suspended for the maximum period al!o-.ved by law to permit adequate time
to review the proposed changes and to establish reasonable rates.
1790958 1
RESOLUTION NO.
1%W Part 2. That the City is authorized to cooperate with ACSC and its member cities in the Mid-Tex service
area and under the direction of the ACSC Executive Committee to hire and direct legal counsel
and consultants, negotiate with the Company, make recommendations to the City regarding
reasonable rates, and to direct any necessary administrative proceedings or court litigation
associated with an appeal of a rate ordinance and the rate case filed with the City or Railroad
Commission.
Part 3. That the City's reasonable rate case expenses shall be reimbursed by Atmos.
Part 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.
Part 5. A copy of this Resolution shall be sent to Atmos, care of David Park, Vice President Rates &
Regulatory Affairs, at Atmos Energy Corporation, Mid-Tex Division, 5420 LBJ Freeway, Suite
1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
ADOPTED this rd. day of , A.D. 2012.
ATTEST: APPROVED:
)k~ ;)~l r `C5"A
City Secretary MAYOR
APPROVED:
City Att rney
1790958 2