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RESOLUTION NO. R11 -249
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS, "CITY DENYING ATMOS ENERGY
CORPORATION WEST TEXAS DIVISION'S "ATMOS
WEST TEXAS" OR "COMPANY FOURTH ANNUAL RATE
REVIEW MECHANISM FILING; PERMITTING THE
COMPANY TO ESTABLISH A REGULATORY ASSET FOR
NEW DEPRECIATION RATES WHICH MAY BE
CONSIDERED IN A SYSTEM -WIDE RATE FILING;
REQUIRING THE COMPANY TO REIMBURSE CITIES'
REASONABLE RATEMAKING EXPENSES; ADOPTING A
SAVINGS CLAUSE; DETERMINING THAT THIS
RESOLUTION WAS PASSED IN ACCORDANCE WITH
THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS RESOLUTION TO THE
COMPANY AND THE STEERING COMMITTEE'S LEGAL
COUNSEL.
WHEREAS, the City of Plainview, Texas "City is a gas utility customer of
Atmos Energy Corporation West Texas Division "Atmos West Texas" or "Company
and a regulatory authority with an interest in the rates and charges of Atmos West
Texas; and
WHEREAS, the City and other similarly situated municipalities working together
as the Steering Committee of Cities Served by Atmos West Texas "Steering
Committee were previously in continuing disagreement, dispute, and litigation with the
Company over the application of Section 104.301 of the Texas Utilities Code and the
interim rate adjustments "GRIP rate increases established by the Railroad
Commission of Texas "RRC" or the "Commission and
WHEREAS, pursuant to the terms of the November 15, 2007 Stipulation settling
the Company's GRIP rate increase application filed July 25, 2007, the Steering
Committee and the Company collaboratively developed the Rate Review Mechanism
"RRM tariff, ultimately authorized by the City in 2008 and extended in 2010, that
allows for an expedited comprehensive rate review process as a substitute to the GRIP
process; and
WHEREAS, on or after April 1, 2011, Atmos West Texas filed with the City its
fourth application pursuant to the RRM tariff to increase natural gas rates by
approximately $2.9 million, such increase to be effective in every municipality within its
West Texas Division; and
WHEREAS, the Steering Committee, assisted by its attorneys and consultants,
coordinated the review of the Atmos West Texas RRM filing; and
Resolution R11 -249
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WHEREAS, independent analysis by the Steering Committee's rate expert
concluded that Atmos West Texas is not able to justify the rate increase requested in
the Company's Fourth RRM filing; and
and
WHEREAS, it is in the public interest to deny the Company's Fourth RRM filing;
WHEREAS, the Company has proposed new depreciation rates as part of its
filing which may be included in a regulatory asset to be considered in a future system-
wide rate case that includes the Lubbock and Amarillo Division as well as the West
Texas Division; and
WHEREAS, the November 15, 2007 Stipulation contemplates reimbursement of
the Steering Committee's reasonable expenses associated with RRM applications;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PLAINVIEW, TEXAS:
Section 1. That the rates proposed by the Company in its Fourth RRM filing, to
be recovered through its gas rates charged to customers located within the City limits,
are hereby found to be unreasonable and are denied. Existing rates are reasonable
and shall remain in place.
Section 2. Atmos Energy shall be allowed to establish a regulatory asset in
Other Regulatory Assets (Account 182.3) for an amount not greater than an eighteen
month period for the changes in West Texas Division depreciation expense resulting
from depreciation rate changes approved by the Texas Railroad Commission in GUD
No. 10041. This regulatory asset may be considered for inclusion in rates in a
subsequent system -wide (inclusive of the Lubbock and Amarillo Divisions) filing made
by Atmos Energy to change rates.
Section 3. That Atmos West Texas shall reimburse the reasonable ratemaking
expenses of the Steering Committee Cities in processing the Company's rate
application.
Section 4. That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Resolution, it is hereby repealed.
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 if any one or more sections or clauses of this Resolution is
adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or
invalidate the remaining provisions of this Resolution and the remaining provisions of
the Resolution shall be interpreted as if the offending section or clause never existed.
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435
436
Section 7. That this Resolution shall become effective from and after its
passage.
Section 8. That a copy of this Resolution shall be sent to Atmos West Texas,
care of Jeffrey Foley, Vice President of Rates and Regulatory Affairs, Atmos Energy
West Texas Division, 5110 80th Street, Lubbock, Texas 79424 -3016 and to Geoffrey
Gay, Steering Committee Counsel, at Lloyd Gosselink Rochelle Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
ATT ST:
Belinda Hinojosa, City Se
APPROVED AS TO FORM:
4
St 1
Leslie Spear Pearc-, City Attorney
Resolution R11 -249
PASSED AND APPROVED this 9 day of August, 2011.
e.
C. Anderson, n
Jbhn e so Mayor
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