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2005-378LAOur Documents\0rdinances\05\GRIP 2004 ord 112905.doc ORDINANCE NO. 2X,6-,3W AN ORDINANCE OF THE CITY OF DENTON, TEXAS DENYING ATMOS ENERGY CORPORATION'S REQUEST FOR AN ANNUAL GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENT FOR CALENDAR YEAR 2004 IN THIS MUNICIPALITY; PROVIDING A REQUIREMENT FOR PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING ' THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS ORDINANCE TO ATMOS ENERGY CORPORATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on or about September 19, 2005 the Atmos Energy Corporation's Mid-Tex Division ("Atmos") filed an application with the City to increase gas rates for its Gas Reliability Infrastructure Program ("GRIP") pursuant to Section 104.301 of the Gas Utility Regulatory Act ("GURA" or "Act"); and WHEREAS, the City has joined with other municipalities in a coalition of cities known as Atmos Texas Municipalities ("ATM"); and WHEREAS, ATM has employed experts to examine the GRIP filing by Atmos and make a recommendation to the ATM Cities; and WHEREAS, the City has suspended the effective date of the GRIP adjustment until January 2, 2005; 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, a public hearing was conducted on December 13, 2005 before the enactment of this Ordinance at which interested parties were given a full opportunity for public comment on Atmos's GRIP filing; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. Atmos' request for a GRIP adjustment for calendar year 2004 within the City is denied in all respects. SECTION 3. The costs incurred in reviewing and investigating the merits of Atmos' application for a GRIP adjustment within the City shall be promptly reimbursed by Atmos. L:\Our Documents\Ordinances\05\GRIP 2004 ord 112905.doc SECTION 4. This Ordinance shall become effective immediately from and after its passage, as the law and City Charter in such cases provide. SECTION 5. That it is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. SECTION 6. A copy of this ordinance, constituting final action on Atmos' application be forwarded by certified mail to Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ Freeway Suite 1823, Dallas, Texas 75240. SECTION 7. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the -4:~d day of 2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: aga h~&6&a ~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY %J BY: Page 2 of 2