HomeMy WebLinkAboutR2005-005S:IOur DocumentslResolutions\O5IAtmos Prudence Review.doc
RESOLUTION No.!/J.OO5-tJtlS-
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, 2000 AND OCTOBER 31, 2003; AUTHORIZING THE CITY JOINING
WITH OTHER SIMILARLY SITUATED CITIES IN A COALITION KNOWN AS THE
ATMOS TEXAS CITIES ("ATM"); AUTHORIZING THE HIRING OF SPECIAL COUNSEL
AND EXPERTS IN THE PURCHASE OR SALE OF GAS; AUTHORIZING THE
INTERVENTION IN GUD DOCKET NO. 9530 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 September 24, 2004 TXU Gas Distribution - Transmission filed with the
Railroad Commission of Texas its Compliance with Gas Utilities Docket ("GUD") No. 8664 and
Motion for Final Order; and
WHEREAS, the filing was docketed at the Railroad Commission as GUD Docket No.
9530 and after TXU Gas was sold to Atrnos Energy Corporation the proceeding was styled as
Atrnos Energy Corporation ("Atmos") - Transmission Gas Review; and
WHEREAS, Atrnos must demonstrate in this filing that the gas costs or purchases
between November 1, 2000 and October 31, 2003 by TXU Gas 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
WHEREAS, in light of the sale ofTXU Gas to Atrnos Energy, the coalition known as the
Alliance ofTXU Municipalities is now known as the Atrnos 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 DocumentsIResolutions\O5IAtmos Prudence Review.doc
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 City is authorized to join with other cities in a coalition of cities
known as the Atrnos Texas Municipalities ("ATM") with the understanding that the steering
committee of ATM would provide direction and guidance to the lawyers who are representing
said cities.
SECTION 3. The City employs the Lawton Law Firm and the Law Offices of Jim
Boyle, PLLC to represent the City in Railroad Commission GUD Docket No. 9530 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. 9530.
SECTION 4. The City authorizes Special Counsel to intervene on behalf of the City in
GUD Docket No. 9530.
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
Atrnos for reimbursement.
SECTION 6. Atrnos 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 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.
PASSED AND APPROVEn'" "" ¿sf d" of ,1¿ju¿~2005.
u~
EUUNEBROCK,MAYOR
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S:\Our DocumentslResolutions\OSlAtmos Prudence Review.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY ~
A' ~'-- WQQ ::b. I AJ
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:IJJ;J¡j(l4
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