HomeMy WebLinkAboutR2012-004s:llegallour documentslresolutions112\atmos-midtex-atm-suspension resolution-final-013112.doc
RESOLUTION NO. �012-004
RESOLUTION BY THE CITY OF DENTON, TEXAS ("CITY") SUSPENDING THE
EFFECTIVE DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE 1NCREASE
FILING OF ATMOS ENERGY CORPOR.ATION ON OR ABOUT JANUARY 31, 2012;
REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES;
AUTHORIZING PARTICIPATION 1N RELATED R.ATE PROCEEDINGS; AUTHORIZING
THE RETENTION OF SPECIAL COUNSEL; FINDING THAT THE MEETING COMPLIES
WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, Atmos Energy Corporation ("Atmos" or "Company") filed a Statement of
Intent with the City on or about January 31, 2012 to change its rate schedules within the
corporate limits of this municipality, specifically to increase its system-wide, annual revenue
requirement by approximately $49.0 million which is an increase in base-rate revenue exclusive
of cost of gas of approximately 12%; and
VJHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under Chapter 104, § 103.001 et seq. of GURA has exclusive original jurisdiction
over Atmos' rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos' rate request and its changes in tariffs it is prudent
to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by Atmos to change rates, has in
the past joined with other local regulatory authorities to form the Atmos Texas Municipalities
("ATM"), and hereby continues its participation in ATM; and
WHEREAS, Atmos' rate request consists of a voluminous amount of information
including Atmos' rate-iiling package, pre-iiled direct testimony, exhibits, schedules, and
workpapers; and
WHEREAS, Atmos 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' filing by
March 6, 2412; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
Atmos' rate application to enable the City to adopt a final decision as a local regulatory authority
with regard to Atmos' requested rate increase; and
WHEREAS, the City will require the assistance of specialized legal counsel and rate
experts to review the merits of Atmos' application to increase rates; and
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WHEREAS, to the extent Atmos seelcs review at the Railroad Commission of Texas of
the City's final decision regarding Atmos' statement of intent to change rates, or should Atmos
submit a statement of intent to the Railroad Commission to increase rates in the environs of the
City, the decision of the Railroad Commission of Texas could have an impact on the rates paid
by the City and its citizens who are customers of Atmos and in order for the City's participation
to be meaningful it is important that the City promptly intervene in such proceeding at the
Railroad Commission of Texas; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
SECTION 2. Atmos' proposed effective date for its proposed increase in rates is hereby
SUSPENDED for ninety days beyond March 6, 2012.
SECTION 3. The statutory suspension period may be further extended if Atmos does not
provide timely, meaningful, and proper public notice of its request to increase rates, or if its rate-
filing package is materially deficient.
SECTION 4. The City shall participate in a coalition of cities known as the Atmos Texas
Municipalities or as "ATM" and authorizes intervention in proceedings related to Atmos'
Statement of Intent before the Railroad Commission of Texas and related proceedings in courts
of law; and
SECTION 5. The City hereby orders Atmos to pay the City's rate case expenses as
provided in the Gas Utility Regulatory Act and that Atmos shall do so on a monthly basis and
within 30 days after submission of the City's invoices for the City's reasonable costs associated
with the City's activities related to this rate review or to related proceedings involving Atmos
before the City, the Railroad Commission of Texas, or any court of law.
SECTION 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with regard to
rate proceedings involving Atmos before the City, the Railroad Commission of Texas, or any
court of law and to retain such experts as may be reasonably necessary for review of Atmos' rate
application subject to approval by the steering committee of the ATM.
SECTION 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices to
Atmos for reimbursement.
SECTION 8. A copy of this Resolution shall be sent to Atmos Energy Mid-Tex, caxe of
Mr. David Park, Vice President Rates and Regulatory Affairs, Atmos Energy Corporation, 5420
LBJ Freeway, Suite 1862, Dallas, Texas 75240; and to Mr. Alfred R. Herrera, Herrera & Boyle,
PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701.
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SECTION 9. The meeting at which this Resolution was approved was in a11 things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 5 51.
SECTION 10. This Resolution shall become Lffective from and after its passage.
G
PASSED AND APPROVED this the �� '� day of ���Z�Q/1/',�j� , 2012.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPR ED AS O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
MARK A. Bi�OUG�I�', MAYOR
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