HomeMy WebLinkAboutR2005-004S:\Our DocumentsIResolutions\O5IAtmos GRlP Filings2.doc
RESOLUTION NO.I{;¡ (}OÓ-{J() If
RESOLUTION OF THE CITY OF DENTON, TEXAS AUTHORIZING THE SUSPENSION
OF THE EFFECTIVE DATE UNTIL MAY 15, 2005 FOR THE GAS RELIABILITY
INFRASTRUCTURE PROGRAM ADJUSTMENTS 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 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 December 17,2004 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") pursuant to Section 1 04.301 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; 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 May 15, 2005 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 ofTXU Gas to Atmos Energy, the coalition known as the
Alliance ofTXU 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; and
S:\Our DocumentsIResolutions\O5IAtmos GRIP Filings2.doc
WHEREAS, Atmos Energy, doing business as Atmos Pipeline - Texas ("Atmos
Pipeline"), has also filed on or about December 17, 2004, 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 until May 15, 2005 but may be
suspended further ifnecessary to complete the review and investigation by City's experts or upon
the mutual agreement of the City and Atmos Energy.
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 hereby employs the Lawton Law Firm and the Law Offices of
Jim Boyle, PLLC to represent the City with regard 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 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.
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S:IOur DocumentsIResolutionsl05IAhnos GRIP Filings2.doc
SECTION 8. Atrnos 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, Atrnos Energy Corporation,
5430 LBJ Freeway, Suite 1800, Dallas, TX 75240-2601.
PASSED AND APPROVED this the / ff day of \ -J.t.J-1.JLtfAr2005.
cÁ-
EUUNEBROCK,MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~Æfo¿Jd~
APPROVED AS TO LEGAL FORM:
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