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2006-180 . i S:\OUr Documents\Ordinances\06\GRIP Dismissal Ordinance.doc ORDINANCE NO. 2fJOfr/fJ,o ORDINANCE OF THE CITY OF DENTON, TEXAS ORDERING THE DISMISSAL AND, IN THE AL TERN A TIVE, THE DENIAL OF A TMOS ENERGY CORPORATION, MID-TEX DIVISION'S APPLICATION FOR AN INTERIM GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENT FOR CALENDAR YEAR 200S; 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 200S; 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 200S 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 200S; and WHEREAS, the Statement of Intent also included a request to recover the $12 million for GRIP 200S; 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 A TM'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 200S 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 200S is in all respects dismissed for want of jurisdiction. Section 4. Atmos Energy's request for a GRIP adjustment for calendar year 200S 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 A TM 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 20fIJ day of l 7(1 f! L 2006. ~~ ATTEST: JENNIFER WALTERS, CITY SECRETARY BY~~\~\\lkv APPROVED AS 0 LE~AL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: