HomeMy WebLinkAboutR2005-042S:\Our Documents\Rcsolutions\05\Atmos 09] 905 GRIP Filing.doc
RESOLUTION NO.1/!. ~(}5-()t./ Z.
A RESOLUTION OF THE CITY OF DENTON, TEXAS AUTHORIZING THE SUSPENSION
OF THE EFFECTIVE DATE FOR THE GAS RELIABILITY INFRASTRUCTURE
PROGRAM ("GRIP") ADJUSTMENTS FOR CALENDAR YEAR 2004 PROPOSED BY
ATMOS ENERGY CORPORATION'S MID-TEX DIVISION; 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 THE GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR
CALENDAR YEAR 2004 PROPOSED BY ATMOS PIPELINE; 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 September 19, 2005 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 2004 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 the first application for recovery under that section of the Act, as amended, it is
therefore necessary to employ 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 in
order to allow the City's rate experts sufficient time to determine the merits of Atmos Energy's
proposed GRIP adjustment for calendar year 2004; 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
scnse 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 steering
committee in order to coordinate the hiring and direction of legal counsel and consultants
working on behalf of ATM and the City; and
S:\Our Documenls\Resolutions\05\Atmos 09] 905 GRIP Filing.doc
WHEREAS, Atmos Energy, doing ,business as Atmos Pipeline - Texas ("Atmos
Pipeline"), has also filed on September 19, 2005, for a GRIP adjustment at the Railroad
Commission of Texas; and
WHEREAS, the filing made at the Railroad Commission of Texas by Atmos Pipeline
could affect the gas rates which have to be paid by Atmos Energy customers located within the
City; and
WHEREAS, It IS Important that the' City and other similarly situated municipalities
participate to the extent allowed by law in order to insure the proper implementation of the GRIP
adjustment by Atmos Pipeline; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON 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. That the effective date for the proposed GRIP adjustments by Atmos
Energy, and the tariffs related thereto, are hereby suspended for an additional forty-five days or
until January 2,2006.
SECTION 3. The City is authorized to join with other cities in a coalition of cities
known as the Atmos Texas Municipalities ("A TM") 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 hereby employs the Lawton Law Firm and the Law Offices of
Jim Boyle, PLLC to represent the City with rcgard to the proposed GRIP adjustments of Atmos
Energy and Atmos Pipeline before local and state regulatory authorities and in any court of law
and authorizes the law firms to employ such rate experts as are recommended by the ATM
Steering Committee.
SECTION 5. The City is authorized to participate to the full extent permitted by law in
the GRIP proceeding for calendar year 2004 initiated by Atmos Pipeline at the Railroad
Commission of Texas and any court action related thereto.
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 or Atmos Pipeline for reimbursement.
SECTION 7. 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 (20) days of receipt of such requests for information. This is in
addition to other forms of discovery.
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S:\Our Documents\Resolutions\05\Atmos 091905 GRIP Fi]ing.doc
SECTION 8. 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 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.
SECTION 11. That the City Secretary is hereby directed to send a true and correct
copy of this Resolution to Douglas C. Walther, Senior Counsel, Atmos Energy Corporation,
5430 LBJ Freeway, Suite 1800, Dallas, TX 75240-2601.
PASSED AND APPROVED this the /~tIL day of ~~
2005.
c~ bzDcL
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By~,t_W~Qj'A"
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
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