HomeMy WebLinkAboutR2006-017S:\Our Documents\Resolutions\06\Resolution ATMOS GRIP 4-6-06.doc
RESOLUTION NO. ZOOS '
RESOLUTION OF THE CITY OF DENTON TEXAS AUTHORIZING THE SUSPENSION
OF THE EFFECTIVE DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY
INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2005
PROPOSED BY ATMOS ENERGY CORPORATION'S MID-TEX DIVISION (ATMOS
ENERGY); AUTHORIZING PARTICIPATION IN A COALITION OF CITIES KNOWN AS
ATMOS TEXAS MUNICIPALITIES ATM"); AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO
THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF
TEXAS WITH REGARD TO ANY GAS RELIABILITY INFRASTRUCTURE PROGRAM
ADJUSTMENTS PROPOSED BY ATMOS ENERGY; 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 March 31, 2006 the 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 2005 pursuant to Section 104.301
of the Gas Utility Regulatory Act ("Act"); and
WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act and the fact
that this is just the third application for recovery under that section 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 suspend the effective date for implementing the GRIP adjustment
until at least July 14, 2006 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 Alliance of TXU Municipalities
ATM") has been active in gas utility ratemaking proceedings; and
WHEREAS, in light of the sale of TXU Gas to Atmos Energy, the coalition known as the
Alliance of TXU Municipalities is now known as the Atmos Texas Municipalities ("ATM"); and
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,
S:\Our Documents\Resolutions\06\Resolution ATMOS GRIP 4-6-06.doc
THE 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.
SECTION 2. The effective date for the proposed GRIP adjustments by Atmos Energy,
and the tariffs related thereto, are hereby suspended until July 14, 2006 in order to complete the
review and investigation by City's experts.
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, Alfred Herrera and Daniel Lawton 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, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices to
Armes Energy for reimbursement.
SECTION 6. City's legal representatives shall have the right to obtain additional
information from Atmos Energy through the service of requests for information, which shall be
responded to within twenty (14) days of receipt of such requests for information.
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 Attorney or his designee shall notify Atmos Energy of this
Resolution by sending a copy of same to Mr. Richard Reis, Atmos Energy Corporation, 5420
LBJ Freeway, Suite 1823, Dallas, Texas 75240-2601 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 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.
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