Res 008-2005 1/18/2005RESOLUTION NO R_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, SUSPENDING THE PROPOSAL BY ATMOS ENERGY
CORP. TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR
GAS UTILITY INVESTMENT IN 2003; AUTHORIZING PARTICIPATION
WITH OTHER CITIES SERVED BY ATMOS ENERGY CORP., MID -TEX
DIVISION, IN A REVIEW AND INQUIRY INTO THE BASIS AND
REASONABLENESS OF THE PROPOSED RATE ADJUSTMENTS;
AUTHORIZING INTERVENTION IN ADMINISTRATIVE AND COURT
PROCEEDINGS INVOLVING THE PROPOSED GRIP RATE
ADJUSTMENTS; DESIGNATING A REPRESENTATIVE OF THE CITY
TO SERVE ON A STEERING COMMITTEE; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT
EXPENSES; 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 unuty customer of
Armes Energy Cory., 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 ') in December 2004, proposing to
Implement interim rate adjustments ('GRIP Raw Increases') pursuant to TEXAS
UTILITIES CODE §104.301 on all customers served by Atmos Mid -Tex; and,
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase
in profits for its fiscal year ended September 30, 2004, and projects further increases in
profits in 2005; and,
WHEREAS, in May 2004, the Railroad Commission entered its Final Omer in
GUD No 9400, authorizing a rate increase that will produce additional annual revenues
of $11.5 million for Atmos Mid Tex; and,
WHEREAS, Atmos Mid-Tex has projected that it will experience annual cost
savings of at least $40 million over the costs included in rates approved in GU) No.
9400, and said savings are likely to greatly exceed the annual revenue requirement
associated with any reasonable increases in invested capital that form the basis of the
proposed GRIP rate increases; 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, the City and its residents could benefit from coordination with other
cities served by Atmas Mid Tex ( "Cities ") in a 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 reasonable costs associated with the participation of Cities in
this rate proceeding are reimbursable from Atmos Mid -Tex.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS. TEXAS, THAT:
SECTION 1 . The February 15, 2005, effective date of the GRIP Rate Increases
proposed by Atmps Mid -Tex is hereby suspended to permit adequate time to 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 other Cities to create and
participate in a Steering Committee 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 adminishative 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, including
CUP No. 8560, the Company's proposed GRIP rate increase for its pipeline system
Had at the Railroad Commission.
SECTION 4 . The City hereby designates City Attorney Bill Sullivan as a
representative to a Cities Steering Committee that shall direct the efforts of counsel and
consultants.
SECTION 5 . Atmos Mid -Tex shall promptly reimburse the City's reasonable
costs associated with the City's activities related to the proposed GRIP Rate Increases.
SECTION e . 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 18" day of January, 2005.
r.11 u_- k Li
MAYOR
ATTEST:
Cray Clerk