HomeMy WebLinkAbout2006-180S:AOur DocumeutsV0rdinancesV06VGRIP Dismissal Ordinancc.doc
ORDINANCE NO. W4L-Z0,(,2
ORDINANCE OF THE CITY OF DENTON, TEXAS
ORDERING THE DISMISSAL AND, IN THE
ALTERNATIVE, THE DENIAL OF ATMOS ENERGY
CORPORATION, MID-TEX DIVISION'S APPLICATION FOR
AN INTERIM GAS RELIABILITY INFRASTRUCTURE
PROGRAM ADJUSTMENT FOR CALENDAR YEAR 2005;
FINDING THAT THE MEETING COMPLIED WITH THE
OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; PROVIDING
NOTICE OF THIS ORDINANCE TO ATMOS ENERGY
CORPORATION; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on or about March 31, 2006 the Atmos Energy Corporation's
Mid -Tex Division ("Atmos Energy" or "Atmos") filed an application with the City of
Denton, Texas ("City") to increase gas rates for its Gas Reliability Infrastructure
Program ("GRIP") for calendar year 2005; and
WHEREAS, on or about May 3, 2006, the City Council passed Resolution
#2006-017 suspending the effective date of the proposed GRIP adjustment by Atmos
Energy and the tariffs related thereto until July 14, 2006; and
WHEREAS, a public hearing was conducted on June 20, 2006 before the
enactment of this ordinance at which interested parties were given a full opportunity for
public comment on Atmos' GRIP filing; and
WHEREAS, the GRIP 2005 adjustment, if adopted, would result in an increase
in rates of approximately $12 million; and
WHEREAS, on or about May 31, 2006 Atmos filed a Statement of Intent to
increase rates systemwide by $72 million, including a request to recover the $12 million
for GRIP 2005: and
WHEREAS, the Statement of Intent also included a request to recover the $12
million for GRIP 2005; and
WHEREAS, the City has exclusive original jurisdiction to evaluate Atmos'
application to increase rates for its GRIP, pursuant to Texas Utilities Code Sections
102.001(b) and 103.001 and other applicable provisions of the law; and
WHEREAS, after examining the law and undertaking an investigation of the
GRIP filing by ATM's consultants, the consultants recommend that the GRIP
adjustment sought by Atmos be denied; and
WHEREAS, the Texas Legislature never intended to allow Atmos to be able to
request an interim 2005 GRIP adjustment while a general rate case or Statement of
Intent is pending before local and state regulatory authorities. NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
Section 1. That the statements set out in the preamble to this ordinance are
hereby in all things approved and adopted.
Section 2. It is not appropriate for Atmos Energy to request recovery of an
interim GRIP adjustment while a general rate case is pending.
Section 3. The application for an interim GRIP adjustment for calendar year
2005 is in all respects dismissed for want of jurisdiction.
Section 4. Atmos Energy's request for a GRIP adjustment for calendar year
2005 is hereby denied in all respects should the Railroad Commission or a court of final
jurisdiction refuse to uphold Section 3 of this Ordinance.
Section 5. The City Secretary shall notify Atmos Energy of this ordinance 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 ordinance to Mr. Jim Boyle, Special Counsel for the ATM cities, by fax
to (512) 474-2507.
Section 6. The meeting at which this ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings act, Texas
Government Code, Chapter 551.
Section 7. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 214t day of (aXL
2006.
PEARAcNEIXLL-
ATTEST:
BY:
APPROVED AS O LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY: