HomeMy WebLinkAboutR2006-016S:\Our Documents\Resolulions\06\Resolulion ATMOS Rate Case.doc
RESOLUTION NO. ZOD p
A RESOLUTION BY THE CITY OF DENTON, TEXAS ORDERING ATMOS ENERGY,
MID-TEX DIVISION TO SHOW CAUSE REGARDING THE REASONABLENESS OF ITS
EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN THE CITY; REQUIRING
ATMOS ENERGY, MID-TEX DIVISION, TO SUBMIT A RATE FILING PACKAGE BASED
ON A TEST YEAR ENDING DECEMBER 31, 2005; AUTHORIZING THE CITY TO JOIN
WITH OTHER CITIES KNOWN AS THE ATMOS TEXAS MUNICIPALITIES ("ATM") TO
DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS; AUTHORIZING THE
HIRING OF ATTORNEYS AND CONSULTANTS; DIRECTING THAT SUCH FILING
SHALL BE MADE PRIOR TO MAY 31, 2006; REQUIRING REIMBURSEMENT OF
REASONABLE LEGAL AND CONSULTANT EXPENSES; 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, the City is a regulatory authority under the Gas Utility Regulatory Act
GURA") and has original jurisdiction over the gas utility rates of Atmos Energy, Mid-Tex
Division ("Atmos"); and
WHEREAS, the City has the authority under 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any
way in violation of any provision of law; and
WHEREAS, a different company, known as TXU Gas, had been the natural gas
distribution provider for the City until the system was purchased by Atmos Energy Corporation
in September 2004; and
WHEREAS, due to the acquisition by Atmos Energy Corporation there is a need to
determine if Atmos' rates are excessive; and
WHEREAS, Atmos should be required to show cause whether its rates and its overall
rate of return are reasonable; and
WHEREAS, a coalition of cities known as Atmos Texas Municipalities ("ATM") has
been organized to review the reasonableness of rates and services in the Mid-Tex region; and
WHEREAS, ATM was previously the Alliance of TXU Municipalities and it operated as
a coalition of cities for most of the last ten years; and
WHEREAS, the City benefits from the expertise and the efficiencies of ATM in
reviewing the reasonableness of Antics' rates and services; and
WHEREAS, under GURA § 103.022 Atmos is required to reimburse the reasonable
rate case expenses of the ATM cities; NOW, THEREFORE,
S10ur Documents\Resolutions\06\Resolution ATMOS Rate Case.doc
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set out in the preamble to this resolution are hereby in all
things approved.
SECTION 2. Atmos is hereby directed to show cause regarding the reasonableness of its
existing natural gas distribution rates within the City. A rate filing package consistent with the
rate filing package ordinances of the Cities of Denton and Longview shall be filed by May 31,
2006, based upon a test year ending on December 31, 2005.
SECTION 3. In the event that Atmos claims that it is entitled to an increase in rates,
Atmos shall provide public notice in a manner which is consistent with the public notice
ordinances for the Cities of Leander, Greenville, Burnet, Corsicana, Manor, Bertram, Gatesville,
Longview and Denton.
SECTION 4. The City shall participate with other cities in the aforementioned
proceedings as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM")
and ATM shall select the experts to work with special counsel.
SECTION 5. Atmos shall reimburse within 30 days after submission the City's
reasonable monthly costs associated with the City's activities related to the rate review or in
related proceedings.
SECTION 6. Subject to the right to terminate employment at any time, the City
authorizes Jim Boyle, Alfred R. Herrera and Daniel Lawton 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.
SECTION 7. 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 8. This Resolution shall become effective from and after its passage.
SECTION 9. The City Attorney or his designee shall send a copy of this Resolution to
Mr. Richard Reis, Atmos Energy Corporation, 5420. LBJ Freeway, Suite 1800, Dallas, Texas
75240 and to Mr. Jim Finley, City Attorney, City of Longview Texas at fax number 903-237-
1009.
PASSED AND APPROVED this the 2 day of 12006.
EULINE BROCK, MAYOR
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