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HomeMy WebLinkAboutRES 082311-R - ATMOS Mid-Tex RateRESOLUTION NO. ©ga A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ("CITY") APPROVING A SETTLEMENT BETWEEN ATMOS ENERGY CORP'S MID-TEX DIVISION ("ATMOS") AND ATMOS TEXAS MUNICIPALITIES ("ATM") RESULTING IN NO CHANGE IN BASE RATES AND APPROVING TARIFFS WHICH REFLECT COSTS RELATED TO THE STEEL PIPE REPLACEMENT PROGRAM; FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS APPROVED COMPLIED WITH THE OPEN MEETINGS ACT; MAKING 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 under §103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation — Mid -Tex Division ("Atmos") rates, operations, and services as a gas utility within the municipality; and, WHEREAS, the City has participated in prior cases regarding Atmos as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), and, WHEREAS, on or about April 1, 2010 Atmos filed for an increase in rates, pursuant to the Rate Review Mechanism ("lTtRM"), of approximately $15.6 million; which represents approximately a $9 million base rate increase and an approximate $6.6 million for the steel pipe replacement program; and, ua 3r 1 WHEREAS, after months of investigation by ATM's rate experts and weeks of negotiations by ATM'S negotiation team a settlement was arrived at which provides: (1) the steel service line replacement program for this last year be funded through a monthly increase of the residential customer charge of twenty-nine cents and an increase in the commercial customer charge of a dollar and twenty-two cents; (2) there will be no increase in base rates; and (3) Atmos and representatives of ATM will begin meeting in mid -August to begin working on rate -related issues, especially those that are difficult to resolve in the time period called for by the RRM process. WHEREAS, the Executive Committee of ATM and its lawyers recommend that the Council approve the attached tariffs which are consistent with the understandings between Atmos and the ATM Executive Committee. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS THAT: Section 1. That the findings set out in the preamble to this resolution are hereby in ali things approved and adopted. Section 2. The City Council hereby finds that this Resolution implements the utility Policy Statement 11.0 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 fees-t- o8d3t 1 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 3. The rates contained in the attached tariffs are just and reasonable and are hereby approved subject to a prudence review of the steel pipe replacement expenditures in the next general rate proceeding. Section 4. That a copy of this Resolution shall be sent to Mr. David Park, Vice President for Rates and Regulation, Mid -Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel for ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701. Section 5. That 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 6. That this resolution shall become effective immediately from and after its passage. PASSED and APPROVED this day of August, 2011. s n CAaRl l AI 1EST: By: essica Brettle, City Secretary APPROVED AS TO FORM: Bridget Chapman, Ac mg City Attorney THE CITY OF GEORGETOWN: George G. Garver, Mayor