HomeMy WebLinkAboutOrdinance 2891
ORDINANCE NO. 2891
AN ORDINANCE OF THE CITY OF NORTH RICH LAND HILLS, 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 ORDINANCE IS ADOPTED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW.
WHEREAS, the City of North Richland Hills, 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 §§ 103.001 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 § 104.151 (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
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 ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS:
SECTION 1. 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.
SECTION 2. That the reduction to current rates previously adopted by the City pursuant
to ordinance or agreement with the Company is just and reasonable.
SECTION 3. 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.
SECTION 4. 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 § 103.022.
SECTION 5. That a copy of this Ordinance shall be sent to the Company, care of
Richard 1. 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.
SECTION 6. That it is hereby officially found and determined that the meeting at which
this Ordinance is adopted is open to the public as required by law and that
public notice of the time, place and purpose of said meeting was given as
required.
CITY
PASSED AND APPROVED this the 26th day of June, 2006.
Ordinance No. 2891
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George A. Staples, ity Attorney
AP1pV;D~~ ~o CLIENT:
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Karen Bostic, Managing Director
Ordinance No. 2891
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