HomeMy WebLinkAboutR2007-018s:\nur documentsUesolutions\07\reso atm prudence review 7-07.dac
RESOLUTION NO. -
A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING A REVIEW OF
THE REASONABLENESS AND PRUDENCE OF GAS PURCHASES AND
EXPENDITURES OF TXU GAS COMPANY, NOW KNOWN AS ATMOS ENERGY
CORPORATION, BETWEEN NOVEMBER 1, 2003 AND OCTOBER 31, 2006;
AUTHORIZING THE CITY JOINING WITH OTHER SIMILARLY SITUATED CITIES IN A
COALITION KNOWN AS THE ATMOS TEXAS MUNICIPALITIES ("ATM");
AUTHORIZING THE HIRING OF SPECIAL COUNSEL AND EXPERTS IN THE
PURCHASE OR SALE OF GAS; AUTHORIZING THE INTERVENTION IN GUD DOCKET
NO. 9732 AT THE RAILROAD COMMISSION AND RELATED PROCEEDINGS;
REQUIRING THE REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT
EXPENSES; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS
ACT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on April 30, 2007, Atmos Energy Corp., Mid-Tex Division ("Atmos") filed
with the Railroad Commission of Texas its Compliance with Gas Utilities Docket ("GUD") No.
8664; and
WHEREAS, the filing was docketed at the Railroad Commission as GUD Docket No.
9732 and the proceeding was styled as Atmos Energy Corp., Mid-Tex Division, Gas Contract
Review; and
WHEREAS, Atmos must demonstrate in this filing that the gas cost or purchases between
November 1, 2003 and October 31, 2006 by Atmos were reasonable and necessary and that the
costs were prudently incurred; and ,
WHEREAS, the Railroad Commission of Texas is empowered to order surcharges or
refunds as a result of the review and investigation of said gas costs; and
WHEREAS, it takes special expertise by both lawyers and consultants in order to assist
the City with such a review; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, investigating, and reconciling said gas costs 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 Alliance of TXU Municipalities
ATM") has been active in gas utility ratemaking proceedings; and
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WHEREAS, the City will join with ;other cities participating in ATM in a steering
committee in order to coordinate the hiring' and direction of legal counsel and consultants
working on behalf of ATM and the City; NOW, THEREFORE,
SECTION 1. That the statements set out in the preamble to this resolution are hereby in
all things approved and adopted.
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SECTION 2. 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 to provide direction and guidance to the lawyers who are representing said
cities.
SECTION 3. The City employs the Herrera & Boyle law fine to represent the City in
Railroad Commission GUD Docket No. 9732 and with regard to any administrative proceedings
or court actions related thereto, and the City authorizes Special Counsel to employ, with the
approval of the ATM Steering Committee, such rate experts as are necessary to assist them with
regard to the review, investigation and possible filing of testimony in GUD Docket No. 9732.
SECTION 4. The City authorizes Special Counsel to intervene on behalf of the City in
GUD Docket No. 9732.
SECTION 5. The City is not obligated to pay any municipal rate case expenses, except
to the extent that they have been authorized by the ATM Steering Committee.
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SECTION 6. At any time a City may withdraw without any obligation to pay for
municipal rate case expenses which have been incurred prior to that time.
SECTION 7. Atmos shall reimburse the City, by payment to the designated City
representing ATM for this purpose, 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 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 9. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this the ~~ day of , 2007.
C/~~~~
PERRY . McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
ate-' .~
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APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
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