HomeMy WebLinkAboutR2008-011s:\our documents4esolutions\OS\a[m show cause resolution.doc
RESOLUTION NO. ,o0p' OIL
A RESOLUTION OF THE CITY OF DENTON, TEXAS, DETERMINING THE CURRENT
RATES OF THE ATMOS ENERGY CORPORATION, MID-TEX DIVISION TO BE UNJUST
AND UNREASONABLE; PROVIDING FOR A REASONABLE NOTICE AND HEARING;
FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; AND
DECLARING AN EFFECTIVE DATE
WHEREAS, Atmos Energy Corporation -Mid-Tex Division ("Atmos") filed a Statement
of Intent with the City of Denton, Texas ("City") on September 20, 2007 to increase its system-
wide, annual revenue requirement, by approximately $51.9 million; and
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' rates,
operations, and services of a gas utility within the municipality; and
WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate
increase, authorized participation in a coalition of cities known as Atmos Texas Municipalities
ATM") and authorized the hiring of lawyers and rate experts; and
WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad
Commission of Texas, which has docketed the appeal along with other appeals as Gas Utilities
Docket No. 9762; and
WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in
extensive negotiations regarding the appropriate rates and rate structure for Atmos; and
WHEREAS, Atmos and ATM have entered into a settlement agreement resolving all
disputes regazding the appropriate rates, terms and conditions for Atmos; and
WHEREAS, Atmos and ATM have determined that the best method to implement such
settlement agreement is to have it approved by each ATM city; and
WHEREAS, in order for City to examine the settlement agreement, it must reestablish its
original jurisdiction over the rates of Atmos; and
WHEREAS, the Gas Utilities Regulatory Act authorizes municipalities exercising
original jurisdiction over gas utilities to issue a Show Cause as to their rates, terms and
conditions, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The statements set out in the preamble to this Resolution are hereby in all
things approved and adopted.
s:\our documen[s\resolutions\OSta[m show cause resolu[ion.doc
SECTION 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing
rates, terms and conditions of Atmos aze unreasonable and determines that Atmos should Show
Cause why such rates, terms and conditions should not be changed.
SECTION 3. In light of the fact that a settlement agreement has been reached between
Atmos and ATM resolving all issues, it is reasonable to proceed to a hearing on the settlement
agreement without additional notice to Atmos and it is reasonable to hold such heazing at the
same city council meeting as the meeting at which this Resolution is adopted.
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 Govermnent Code,
Chapter 551.
SECTION 5. This Resolution shall become effective from and afterits/passage.
PASSED AND APPROVED this the ~ ~2 day of ~ , 2008.
PERK R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
t
APPR ED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY: ~ ~i .. -
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