HomeMy WebLinkAboutRES 062607-S-6 - ATMOS DenialRESOLUTION NO. O( ?C O7- S®4+
RESOLUTION OF THE CITY OF GEORGETOWN, TEXAS
AUTHORIZING THE DENIAL OF ATMOS ENERGY
CORPORATION'S MID-TEX DIVISION'S ("ATMOS MID-
TEX") GAS RELIABILITY INFRASTRUCTURE
PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2006;
AUTHORIZING PARTICIPATION IN A COALITION OF
CITIES KNOWN AS ATMOS TEXAS MUNICIPALITIES
("ATM"); AUTHORIZING THE HIRING OF LAWYERS
AND RATE EXPERTS, AUTHORIZING THE CITY'S
PARTICIPATION TO THE FULL EXTENT PERMITTED
BY LAW AT THE RAILROAD COMMISSION OF TEXAS
IN GUD DOCKET NOS. 9734 AND 9726; REQUIRING THE
REIMBURSEMENT OF MUNICIPAL RATE CASE
EXPENSES; FINDING THAT THE MEETING COMPLIED
WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on or about May 31, 2007 Atmos Energy Corporation's Mid -Tex
Division ("Atmos Energy") filed an application with the City to increase gas rates for its
Gas Reliability Infrastructure Program ("GRIP") for calendar year 2006 pursuant to
Section 104.301 of the Gas Utility Regulatory Act ("Act"); and
WHEREAS, Atmos Pipeline -Texas filed at the Railroad Commission for a GRIP
adjustment for calendar year 2006; and
WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act it is
therefore necessary to engage the expertise of lawyers and consultants who specialize in
ratemaking proceedings before regulatory authorities to assist the City as provided for in
Section 103.022 of the Act; and
WHEREAS, given the complexity and the need to carefully review the proposed
GRIP adjustment it is necessary to deny the GRIP adjustment in order to allow the City's
rate experts sufficient time to deteiniine the merits of Atmos Energy's proposed GRIP
adjustment; and
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WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos Fnergy's request for a GRIP adjustment it
makes sense to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, a coalition of municipalities, known as the Atmos Texas
Municipalities ("ATM") has been active in gas utility ratemaking proceedings; and
WHEREAS, the City will join with other cities participating in ATM in a
steering committee in order to coordinate the hiring and direction of legal counsel and
consultants working on behalf of ATM and the City; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GEORGETOWN THAT:
Section 1. The facts and recitations contained in the preamble of this
resolution are hereby found and declared to be true and correct, and are incorporated by
reference herein and expressly made a part hereof, as if copied verbatim. The City
Council hereby finds that this resolution implements the Utility Policy Statement 11.00 of
the Century Plan - Policy Plan Element, which states: "City owned, sponsored or
managed utilities are competitively priced and provide safe, adequate and reliable
services to all customers." and further finds that the adoption of this resolution is not
inconsistent or in conflict with any other Century Plan Policies, as required by Section
2.03 of the Administrative Chapter of the Policy Plan.
Section 2. The City hereby denies Atmos Mid-Tex's request for GRIP
adjustments for fiscal year 2006, in all respects.
Section 3. The City is authorized to join with other cities in a coalition of
cities known as the Atmos Texas Municipalities ("ATM") with the understanding that the
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steering committee of ATM will provide direction and guidance to the lawyers who are
representing said cities.
Section 4. The City employs Jim Boyle, and Alfred Herrera as special
counsel to represent the City with regard to the proposed GRIP adjustments of Atmos
Energy before local and state regulatory authorities and any court of law and authorizes
special counsel to employ such rate experts as are recommended by the ATM Steering
Committee.
Section 5. The City authorizes special counsel to intervene on behalf of the
City and other members of ATM before the Railroad Commission of Texas in GUD
Docket Nos. 9734 and 9726.
Section 6. The City, in coordination with the Steering Committee, shall
review the invoices of the lawyers and rate experts for reasonableness before submitting
the invoices to Atmos Energy for reimbursement.
Section 7. Atmos Energy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorneys and
consultants and expenses related thereto, upon the presentation of invoices reviewed by
the Steering Committee.
Section 8. The City Secretary shall notify Atmos Energy of this resolution by
sending a copy of same to Ms. Barbara Myers, Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1824, Dallas, Texas 75240 and ATM shall be notified by sending a copy
of this resolution to Mr Jim Finley, City Attorney for the City of Longview by fax to
(903) 239-5539.
Section 9. The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings act, Texas
Government Code, Chapter 551.
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Section 10. The Mayor is hereby authorized to sign this Resolution and the
City Secretary to attest thereto on behalf of the City of Georgetown
Section 11. This resolution shall become effective from and after its passage.
RESOLVED this g=Y,. day of
ATTF ST:
Sandra Lee, City Secretary
APPROVED AS TO FORM:
Patricia E. Carls
Brown & Carls, LLP, City Attorney
2007.
THE CITY OF GEORGETOWN
ary Nelon, Mayor