Res 118-2007 7/17/2007 RESOLUTION NO. 118-2007
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, SUSPENDING THE JULY 30, 2007 EFFECTIVE DATE
OF THE PROPOSAL BY ATMOS ENERGY CORP., MID-TEX DIVISION
TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS
UTILITY INVESTMENT IN 2006; AUTHORIZING PARTICIPATION WITH
THE ATMOS CITIES STEERING COMMITTEE IN A REVIEW AND
INQUIRY INTO THE SUFFICIENCY OF THE FILING AND THE BASIS
OF THE PROPOSED RATE ADJUSTMENTS; AUTHORIZING
INTERVENTION IN ADMINISTRATIVE AND COURT PROCEEDINGS
INVOLVING THE PROPOSED GRIP RATE ADJUSTMENTS;
REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT RATEMAKING COSTS; REQUIRING DELIVERY OF
THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL;
FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS
RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS
REQUIRED BY LAW.
WHEREAS, the City of Wichita Falls, Texas ("City") is a gas utility customer of
Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "the Company"), and a
regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and,
WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad
Commission of Texas ("Railroad Commission") on or about May 31, 2007, proposing to
implement interim rate adjustments ("GRIP rate increases"), pUfSUallt t0 TEXAS UTILITIES
Co�E §104.301, on all customers served by Atmos Mid-Tex, effective July 30, 2007;
and,
WHEREAS, Atmos Mid-Tex was recently granted a rate increase as a result of
its filing in GUD No. 9670, on which the Final Order was only signed on March 29,
2007; and,
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid-Tex has
inappropriately included certain expenditures in its prior GRIP rate increases for rate
years 2003, 2004, and 2005; and,
WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine
this latest GRIP filing to determine its compliance with the TExas UTi�iTiES CooE; and,
WHEREAS, ratepayers of Atmos Mid-Tex, including the City and its residents,
will be adversely impacted by the proposed GRIP rate increases; and,
WHEREAS, it is advantageous for the City and its citizens to coordinate the
City's response to Atmos' filing with similarly situated municipalities; and,
WHEREAS, the City has benefited from prior participation with the Atmos Cities
Steering Committee ("ACSC"); and,
WHEREAS, it is efficient and cost beneficial for the City to again coordinate
review of the reasonableness of the proposed GRIP rate increases and joint
participation in any proceedings at the Railroad Commission related to the proposed
GRIP rate increases; and,
WHEREAS, the Executive Committee of ACSC has recommended suspension
and established a budget for evaluation of the Atmos filing; and,
WHEREAS, a GRIP proceeding involves rate making, entitling cities to
reimbursement of reasonable rate case expenses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. The July 30, 2007 effective date of the GRIP rate increases
proposed by Atmos Mid-Tex is hereby suspended for the maximum period allowed by
law to permit adequate time to investigate the sufficiency of the GRIP Rate Increase
filing; review the proposed increases; analyze all necessary information, and take
appropriate action related to the proposed increases.
SECTION 2. The City is authorized to cooperate with ACSC to hire and direct
legal counsel and consultants, to negotiate with the Company, to make
recommendations to the City regarding the proposed GRIP rate increases, and to direct
any administrative proceedings or litigation associated with the proposed GRIP rate
increases.
SECTION 3. The City is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP rate increases.
SECTION 4. Atmos Mid-Tex shall promptly reimburse the City's reasonable
costs associated with the City's ratemaking activities related to the proposed GRIP rate
increases.
SECTION 5. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of
Charles R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink,
816 Congress Avenue, Suite 1900, Austin, Texas 78701.
,
SECTION 6. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 17 day of July, 2007.
��
MAYOR
ATTEST:
�
i y Clerk