HomeMy WebLinkAboutR2007-004S:\Our Documents\Resolutions\07\Gas Coalition.doc
RESOLUTION NO. fJ()f}7-IJCJ
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
AUTHORIZING THE PARTICIPATION IN A JOINT COALITION OF CITIES KNOWN AS
ALLIANCE OF GAS MUNICIPALITIES ("AGM") COMPRISED OF CITIES SERVED BY
ATMOS ENERGY CORPORATION, CENTERPOINT ENERGY ENTEX, AND TEXAS GAS
SERVICES TO WORK ON LEGISLATIVE ISSUES OF COMMON CONCERN AFFECTING
RATEPAYERS; PROVIDING FOR FORMATION OF A STEERING COMMITTEE;
PROVIDING FOR THE EMPLOYMENT OF LEGAL EXPERTS RELATED TO SAID
EFFORTS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS
ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE "
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, during the last special session of the Texas Legislature, legislation was
proposed which would severely limit the ability of municipalities to review the rates and services
of investor-owned gas distribution companies; and
WHEREAS, it is highly likely that there will be legislation to deal with the adverse
consequences of a court decision effectively eliminating municipal participation in the review of
the reasonableness and prudence of gas purchases by local gas distribution companies; and
WHEREAS, it is highly likely that legislation will be proposed during the 80th Session of
the Texas Legislature which could seriously harm the original jurisdiction of municipalities over'
the rates and services of local gas distribution companies as well as the effective participation by
municipalities in ratemaking proceedings at the Railroad Commission of Texas; and
WHEREAS, as a regulatory authority with the responsibility to review the rates and ,
1servicesofgascompanies, it is in the interest of Texas cities to participate in a coalition with
municipalities who are similarly situated; and
WHEREAS, the municipalities served by the Atmos Energy Corporation, CenterPoint
Energy Entex, and Texas Gas Services wish to form the coalition known as Alliance of Gas
Municipalities ("AGM") in order to increase the effectiveness of municipalities with regard to
the regulation of the rates and services. of local gas distribution companies; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. That the findings set out in the preamble to this resolution are hereby in all
things approved and adopted.
SECTION 2. That the City is authorized to join with other similarly situated
municipalities to form and participate in the Alliance of Gas Municipalities ("AGM"), to form a
steering committee, and to work with said steering committee to provide direction and guidance "
to legal experts.
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SECTION 3. That the City employs the law firm of Herrera & Boyle, PLLC, to represent
the City and the coalition during the 80th Session of the Texas Legislature to help preserve and
enhance the City's original jurisdiction over the rates and services of local gas distribution
companies and to promote the effective participation by municipalities in the periodic review of
the reasonableness and prudence of the purchase of natural gas by such entities.
SECTION 4. The law firm of Herrera & Boyle is already employed by the City of
Denton for the 80th Regular Session of the Texas Legislature. There will be no charge to the City
of Denton for work done in connection with the Alliance of Gas Municipalities.
SECTION 5. That 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 6. That this resolution shall become effective from and after its passage.
PASSED AND APPROVED this the .2tJtd. day of f~hrtfLlrlf ,2007.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: Qw- t!teiz~/ tUd:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
1
BY: ~#Y~
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