HomeMy WebLinkAboutResolution 2012-014 RESOLUTION NO. 2012 -014
RESOLUTION OF THE CITY OF NORTH RICHLAND HILLS, TEXAS
DENYING ATMOS ENERGY CORP., MID -TEX DIVISION'S ( "ATMOS
MID - TEX ") REQUESTED RATE CHANGE; REQUIRING THE
COMPANY TO REIMBURSE THE CITY'S REASONABLE
RATEMAKING 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, the City of North Richland Hills, Texas ( "City ") is a gas utility customer of
Atmos Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "Company "),
and 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, the City is a member of the Atmos Cities Steering Committee ( "ACSC "), a
coalition of over 150 similarly situated cities served by the Company that
have joined together to facilitate the review and response to natural gas
issues affecting rates charged in the Atmos Mid -Tex Division; and
WHEREAS, pursuant to the terms of the agreement settling the Company's 2007
Statement of Intent to increase rates, ACSC and the Company worked
collectively to develop a Rate Review Mechanism ( "RRM ") tariff that allows
for an expedited rate review process controlled in a three -year experiment
by ACSC as a substitute to the current GRIP process instituted by the
Legislature; and
WHEREAS, ACSC and the Company agreed to extend the RRM process in reaching a
settlement in 2010 on the third RRM filing; and
WHEREAS, in 2011, ACSC and the Company engaged in good faith negotiations
regarding the continuation of the RRM process, but were unable to come to
ultimate agreement; and
WHEREAS, on or about January 31, 2012, the Company filed a Statement of Intent with
the cities retaining original jurisdiction within its Mid -Tex service division to
increase rates by approximately $49 million; and
WHEREAS, Atmos Mid -Tex proposed March 6, 2012, as the effective date for its
requested increase in rates; and
Resolution No. 2012 -014
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WHEREAS, the City suspended the effective date of Atmos Mid -Tex's proposed rate
increase for the maximum period allowed by law and thus extended the
City's jurisdiction until June 4, 2012; and
WHEREAS, on April 25, 2012, the Company extended the effective date for its
proposed rates by one week, which similarly extended the City's jurisdiction
until June 11, 2012; and
WHEREAS, the ACSC Executive Committee hired and directed legal counsel and
consultants to prepare a common response to the Company's requested
rate increase and to negotiate with the Company and direct any necessary
litigation; and
WHEREAS, ACSC's consultants conducted a review of the Company's requested rate
increase and found justification that the Company's rates should be
decreased; and
WHEREAS, ACSC and the Company have engaged in settlement discussions but will
be unable according to Company representations to reach settlement in
sufficient time for cities to act before June 11, 2012; and
WHEREAS, failure by ACSC members to take action before June 11, 2012 would allow
the Company the right to impose its full request on residents of said ACSC
members; and
WHEREAS, the ACSC Settlement Committee recommends denial of the Company's
proposed rate increase in order to continue settlement discussions pending
the Company's appeal of cities' denials to the Railroad Commission of
Texas; and
WHEREAS, the GURA § 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 rates proposed by Atmos Mid -Tex to be recovered through its gas
rates charged to customers located within the City limits, are hereby found
to be unreasonable and shall be denied.
SECTION 2. That the Company shall continue to charge its existing rates to customers
within the City and that said existing rates are reasonable.
SECTION 3. That the City's reasonable rate case expenses shall be reimbursed by the
Company.
Resolution No. 2012 -014
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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. A copy of this Resolution shall be sent to Atmos Mid -Tex, 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.
PASSED AND APPROVED this the 14th day of May, 2012.
N \ \ " " "'•''",niti CITY • NORTH " CHLAND HILLS
C H L ll� j�pi
Ft .-4 i
®: n �
r ; r - By. Orialk
"'. h :" Oscar Tre'',
.S ayor
�T:
Patricia Hutson, City Secretary
APPROV -D A TO FORM AND LEGALITY:
ai
44,4 George A. St
City Attorney
APPROVED AS TO CONTENT:
Karen Bostic, Assistant City Manager
Resolution No. 2012 -014
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