HomeMy WebLinkAboutR2011-030sAlegahour documentslresolutions1111resolution approving settlement between atm and atmos for 201 Ldoc
RESOLUTION NO. R2011-030
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ("CITY")
APPROVING A SETTLEMENT BETWEEN ATMOS ENERGY CORP'S MID-TEX
DIVISION ("ATMOS") AND ATMOS TEXAS MUNICIPALITIES ("ATM") RESULTING IN
NO CHANGE IN BASE RATES AND APPROVING TARIFFS WHICH REFLECT COSTS
RELATED TO THE STEEL PIPE REPLACEMENT PROGRAM; FINDING THE RATES SET
BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; REQUIRING
DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL;
DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS
APPROVED COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos Energy
Corporation - Mid-Tex Division ("Atmos") rates, operations, and services as a gas utility within
the municipality; and
WHEREAS, the City has participated in prior cases regarding Atmos as part of a
coalition of cities known as the Atmos Texas Municipalities ("ATM"), and
WHEREAS, on or about April 1, 2010 Atmos filed for an increase in rates, pursuant to
the Rate Review Mechanism ("RRM"), of approximately $15.6 million, which represents
approximately a $9 million base rate increase and an approximate $6.6 million for the steel pipe
replacement program; and
WHEREAS, after months of investigation by ATM's rate experts and weeks of
negotiations by ATM's negotiation team, a settlement was arrived at which provides: (1) the
steel service line replacement program for this last year be funded through a monthly increase of
the residential customer charge of twenty-nine cents and an increase in the commercial customer
charge of a dollar and twenty-two cents; (2) there will be no increase in base rates; and (3)
Atmos and representatives of ATM will begin meeting in mid-August to begin working on rate-
related issues, especially those that are difficult to resolve in the time period called for by the
RRM process; and
WHEREAS, the Executive Committee of ATM and its lawyers recommend that the
Council approve the attached tariffs which are consistent with the understandings between
Atmos and the ATM Executive Committee; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set out in the preamble to this Resolution are hereby in all
things approved and adopted.
s:Uegal\our documents\resolutions\l l\resolution approving settlement between atm and atmos for 201 Ldoc
SECTION 2. The rates contained in the attached tariffs are just and reasonable and are
hereby approved subject to a prudence review of the steel pipe replacement expenditures in the
next general rate proceeding.
SECTION 3. A copy of this Resolution shall be sent to Mr. David Park, Vice President
for Rates and Regulation, Mid-Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway,
Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel for ATM, at Herrera & Boyle,
PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701.
SECTION 4. The meeting at which this Resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
SECTION 5. This Resolution shall become effective immediately from and after its
passage.
PASSED AND APPROVED this the
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY.
AP OVE S TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
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day of '2011.
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