HomeMy WebLinkAboutRES 050906-R - Atmos Energy Gas RatesRESOLUTION NO. OS 0 °1 o b-
A RESOLUTION BY THE CITY OF GEORGETOWN, TEXAS
ORDERING ATMOS ENERGY, MID-TEX DIVISION TO SHOW
CAUSE REGARDING THE REASONABLENESS OF ITS
EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN
THE CITY; REQUIRING ATMOS ENERGY, MID-TEX DIVISION,
TO SUBMIT A RATE FILING PACKAGE BASED ON A TEST
YEAR ENDING DECEMBER 31, 2005; AUTHORIZING THE CITY
TO JOIN WITH OTHER CITIES KNOWN AS THE ATMOS
TEXAS MUNICIPALITIES ("ATM") TO DIRECT THE
ACTIVITIES OF LAWYERS AND CONSULTANTS;
AUTHORIZING THE HIRING OF ATTORNEYS AND
CONSULTANTS; DIRECTING THAT SUCH FILING SHALL BE
MADE PRIOR TO MAY 31, 2006; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING SUCH
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and has original Jurisdiction over the gas utility rates of Atmos Energy, Mid -Tex
Division ("Atmos"); and
WHEREAS, the City has the authority under §§ 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any
way in violation of any provision of law; and
WHEREAS, a different company, known as TXU Gas, had been the natural gas
distribution provider for the City until the system was purchased by Atmos Energy Corporation
in September, 2004; and
WHEREAS, due to the acquisition by Atmos Energy Corporation there is a need to
determine if Atmos' rates are excessive; and
WHEREAS, Atmos should be required to show cause whether its rates and its overall
rate of return are reasonable; and
WHEREAS, a coalition of cities known as Atmos Texas Municipalities ("ATM") has
been organized to review the reasonableness of rates and services in the Mid -Tex region; and
WHEREAS, ATM was previously the Alliance of TXU Municipalities and it operated as
a coalition of cities for most of the last ten years; and
WHEREAS, the City benefits from the expertise and the efficiencies of ATM in
reviewing the reasonableness of Atmos' rates and services; and
WHEREAS, under GURA § 103.022 Atmos is required to reimburse the reasonable rate
case expenses of the ATM cities.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GEORGETOWN, TEXAS 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 hereinand
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
pi ovide 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. Atmos is hereby directed to show cause regarding the reasonableness of its
existing natural gas distribution rates within the City. A rate filing package consistent with the
rate filing package ordinances of the Cities of Gatesville and Longview shall be filed by May 31,
2006, based upon a test year ending on December 31, 2005.
Section 3. In the event that Atmos claims that it is entitled to an increase in rates,
Atmos shall provide public notice in a manner which is consistent with the public notice
ordinances for the Cities of Leander, Greenville, Burnet, Corsicana, Manor, Bertram, Gatesville,
Longview and Denton.
Section 4. The City shall participate with other cities in the aforementioned
proceedings as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM")
and ATM shall select the experts to work with special counsel.
Section 5. Atmos shall reimburse within 30 days after submission the City's
reasonable monthly costs associated with the City's activities related to the rate review or in
related proceedings.
Section 6. Subject to the right to teiininate employment at any time, the City
authorizes Jim Boyle, Alfred R. Herrera, and Daniel Lawton to act as special counsel with regard
to rate proceedings involving Atmos before the City, the Railroad Commission of Texas or any
court of law.
Section 7. 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.
Section 8. The Mayor is hereby authorized to sign this Resolution and the City
Secretary to attest thereto onbehalf of the City of Georgetown.
Section 9. A copy of this resolution shall be sent to Mr. Richard Reis, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240 and to Mr. Jim Finley, City
Attorney, City of Longview Texas at fax number 903-239-5539.
RESOLVED this 9 day of
Sandra Lee, City Secretary
APPRQVED AS. TO EOI3 v1:
4r
Patricia E. Carts
BROWN & CARLS, LLP, City Attorney
HE CIT OF GEORGETOWN:
y Nelon, Mayor