HomeMy WebLinkAboutRES 050906-S - Gas Reliability InfrastructureRESOLUTION NO.
RESOLUTION OF THE CITY OF GEORGETOWN, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE
DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY
INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR
CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY
CORPORATION'S MID-TEX DIVISION; 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 WITH REGARD
TO; 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 March 31, 2006 the 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 2005 pursuant to
Section 104.301 of the Gas Utility Regulatory Act("Act"); and
WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act and
the fact that this is the first application for recovery under that section 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 suspend the effective date for implementing the GRIP
adjustment until at least July 14, 2006 in order to allow the City's rate experts sufficient
time to determine the merits of Atmos Energy's proposed GRIP adjustment; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos Energy'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 Alliance of TXU
Municipalities ("ATM") has been active in gas utility ratemaking proceedings; and
WHEREAS, in light of the sale of TXU Gas to Atmos Energy, the coalition
known as the Alliance of TXU Municipalities is now known as the Atmos Texas
Municipalities ("ATM"); 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, 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 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 effective date for the proposed GRIP adjustments by Atmos
Energy, and the tariffs related thereto, are hereby suspended until July 14, 2006 in order
to complete the review and investigation by City's experts.
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
steering committee of ATM will provide direction and guidance to the lawyers who are
representing said cities.
Section 4. The City employs Jim Boyle, Alfred Herrera and Daniel Lawton as
special counsel to represent. the City with regard to the proposed. GRIP adjustments of
Atmos Energy before local andstate 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, 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 6. City's legal representatives shall have the right to obtain additional
infou nation from Atmos Fnergy through the service of requests for information, which
shall be responded to within twenty (14) days of receipt of such requests for information.
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 Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1823, Dallas, Texas 75240-2601 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.
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 day of
AI1ES
Sandra Lee, City Secretary
APPROVED AB TO FORM:
Patricia E. Carls
BROWN & CARLS, LLP, City Attorney
, 2006.
? THE CITY OF GEORGETOWN:
ary Nelon, Mayor