HomeMy WebLinkAboutResolution 2006-032
RESOLUTION NO. 2006-032
A RESOLUTION BY THE CITY OF NORTH RICHLAND HILLS, TEXAS
SUSPENDING THE MAY 30, 2006, EFFECTIVE DATE OF THE
PROPOSAL BY ATMOS ENERGY CORP., MID-TEX DIVISION TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INESTMENT IN 2005; AUTHORIZING PARTICIPATION WITH THE GAS
STANDING STEERING COMMITTEE IN A REVIEW AND INQUIRY INTO
THE SUFFICIENCY OF THE FILING AND THE BASIS AND
REASONABLENESS 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 EXPENSES; AND REQUIRING DELIVERY
OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of North Richland Hills, Texas ("City") is a gas utility
customer of Atmos Energy Corp., Mid-Tex Division, ("Atmos Mid-Texas" 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 March 30, 2006, 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 May 30,
2006; and
WHEREAS, a recent rate investigation conducted by consultants for the Gas
Standing Steering Committee has indicated that Atmos Mid-Tex is already collecting
sufficient revenues to earn its allowed return and does not require a GRIP surcharge;
and
WHEREAS, the sufficiency of the filing by Atmos Mid-Tex and its compliance
with statutory mandates is in question and needs to be determined; 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 City and its residents could benefit from coordination with the
Gas Standing Steering Committee 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 in
this rate proceeding are reimbursable from Atmos Mid-Tex;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
1. The May 30, 2006, 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.
2. The City is authorized to cooperate with the Gas Standing Steering
Committee 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.
3. The City is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP rate increases.
4. Atmos Mid-Texas shall promptly reimburse the City's reasonable costs
associated with the City's activities related to the proposed GRIP rate increases.
5. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Richard T.
Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to the Gas Standing Steering Committee, at
Lloyd Gosselink, 816 Congress Avenue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED THIS 8TH OF MAY, 2006.
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RICHLAND HILLS:
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APPROVED AS TO FORM AND LEGALITY:
APPROVED AS TO CONTENT:
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Karen Bostic, Managing Director
Resolution No. 2006-032
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