HomeMy WebLinkAboutResolution 2012-006 RESOLUTION NO. 2012 -006
RESOLUTION OF THE CITY OF NORTH RICHLAND HILLS
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., Mid -Tex Division
( "Atmos Mid -Tex" or "Company "), pursuant to Gas Utility Regulatory Act
§ 104.102 filed with the City of North Richland Hills ( "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 jurisdiction 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
Resolution No. 2012 -006
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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 local 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.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS:
SECTION 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 allowed by law to permit adequate time to review the proposed
changes and to establish reasonable rates.
SECTION 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.
SECTION 3 THAT the City's reasonable rate case expenses shall be reimbursed by
Atmos.
SECTION 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.
SECTION 5 THAT 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.
Resolution No. 2012 -006
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PASSED AND APPROVED this the 27th day of February, 2012.
CITY • ' ORTH • HLAND H LS / Or
c ;�� G r 1 _ Lg N . ii i,,��� By:
A' ,2,. n ''ti� Oscar Tr�no, Mayor
ATTEST: 1
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Patricia Hutsh
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APPROV to AS TO FORM AND LEGALITY:
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George A. Stap :•s, City Attorney
APPRO D AS TO CONTENT:
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Karen Bostic, Assistant City Manager
Resolution No. 2012 -006
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