HomeMy WebLinkAboutR2007-017s:\our documents\resolutionsb7\0(1907 a[mos energy.doc
RESOLUTION NO. O
RESOLUTION OF THE CITY OF DENTON, TEXAS AUTHORIZING THE DENIAL OF
ATMOS ENERGY CORPORATION'S MID-TEX DIVISION'S ("ATMOS MID-TEX") GAS
RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR CALENDAR YEAR
2006; AUTHORIZING PARTICII'ATION IN A COALITION OF CITIES KNOWN AS
ATMOS TEXAS MUNICIPALITIES ("ATM"); AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZ]G THE CITY'S PARTICIPATION TO
THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF
TEXAS IN GUD DOCKET NOS. 9734 AND 9726; REQUIRING THE REIMBURSEMENT
OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIED
WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on or about May 31, 2007 Atmos Energy Corporation's Mid-Tex Division
Atmos Energy") filed an application with the City to increase gas rates for its Gas Reliability
Infrastructure Program ("GRIP") for calendar year 2006 pursuant to Section 104.301 of the Gas
Utility Regulatory Act ("Act"); and
WHEREAS, Atmos Pipeline-Texas filed at the Railroad Commission for a GRIP
adjustment for calendar year 2006; and
WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act it is
therefore necessary to engage the expertise of lawyers and consultants who specialize in
ratemaking proceedings before regulatory authorities to assist the City as provided for in Section
103.022 of the Act; and
WHEREAS, given the complexity and the need to carefully review the proposed GRIP
adjustment it is necessary to deny the GRIP adjustment in order to allow the City's rate experts
sufficient time to determine the merits of Atmos Energy's proposed GRIP adjustment; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos Energy's request for a GRIP adjustment it makes
sense to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, a coalition of municipalities, known as the Atmos Texas Municipalities
ATM") has been active in gas utility ratemaking proceedings; and
WHEREAS, the City will join with other cities participating in ATM in a steeringcommitteeinordertocoordinatethehiringanddirectionoflegalcounselandconsultants
working on behalf of ATM and the City; NOW, THEREFORE,
s:\our documents\resolutions\07\061907 atmos energy.doc
THE CITY COUNCIL OF THE C[TY OF DENTON, TEXAS HEREBY RESOLVES:
SECTION 1. That the statements set out in the preamble to this resolution are hereby in
all things approved and adopted.
SECTION 2. The City hereby denies Atmos Mid-Tex's request for GRIP adjustments
for fiscal year 2006, in all respects.
SECTION 3. The City is authorized to join with other cities in a coalition of cities
known as the Atmos Texas Municipalities ("ATM") with the understanding that the steering
committee of ATM will provide direction and guidance to the lawyers who are representing said
cities.
SECTION 4. The City employs Jim Boyle, and Alfred Herrera as special counsel to
represent the City with regard to the proposed GRIP adjustments of Atmos Energy before local
and state regulatory authorities and any court of law and authorizes special counsel to employ
such rate experts as are recommended by the ATM Steering Committee.
SECTION 5. The City authorizes special counsel to intervene on behalf of the City and
other members of ATM before the Railroad Commission of Texas in GUD Docket Nos. 9734
and 9726.
SECTION 6. 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 Energy for reimbursement.
SECTION 7. Atmos Energy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorneys and
consultants and expenses related thereto, upon the presentation of invoices reviewed by the
Steering Committee.
SECTION 8. The City Secretary shall notify Atmos Energy of this resolution by sending
a copy of same to Ms. Barbara Myers, Atmos Energy Corporation, 5420 LBJ Freeway, Suite
1824, Dallas, Texas 75240 and ATM shall be notified by sending a copy of this resolution to Mr.
Jim Finley, City Attorney for the City of Longview by fax to (903) 239-5539.
SECTION 9. 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 10. This resolution shall become effective from and after its passage.
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s:bur documents\resolutions\07\061907 atmos cncrgy.doc
PASSED AND APPROVED this the /qt~t day of , 2007.
rn~~~.~
PE R. McNEILL, MAYOR
ATTEST:
IENNIFER WALTERS, CITY SECRETARY
BY: i,~,
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:~~~
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