Loading...
HomeMy WebLinkAboutR12-268RESOLUTION NO. R12 -268 A RESOLUTION OF THE CITY OF PLAINVIEW DENYING ATMOS ENERGY CORP., WEST TEXAS DIVISION'S ( "ATMOS WEST TEXAS ") REQUESTED RATE CHANGE; REQUIRING THE COMPANY TO REIMBURSE THE CITY'S REASONABLE RATEMAKING EXPENSES; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND THE CITY'S LEGAL COUNSEL. WHEREAS, the City of Plainview, Texas ( "City ") is a gas utility customer of Atmos Energy Corp., West Texas Division ( "Atmos West Texas" or "Company "), and is a regulatory authority under the Gas Utility Regulatory Act ( "GURA ") and under Chapter 104, §104.001 et seq. of GURA, has exclusive original jurisdiction over Atmos West Texas' rates, operations, and services within the City; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Atmos West Texas ( "Cities "), a coalition of similarly situated cities served by the Company that have joined together to facilitate the review and response to natural gas issues affecting rates charged in Atmos Energy Corporation's West Texas Division; and WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 request to increase rates under the Gas Reliability Infrastructure Program ( "GRIP ") process, Cities and the Company worked collectively to develop a Rate Review Mechanism ( "RRM ") tariff that allows for an expedited rate review process controlled in a three -year experiment by Cities as a substitute to the current GRIP process instituted by the Legislature; and WHEREAS, Cities and the Company agreed to extend the RRM process in reaching a settlement in 2010 on the third RRM filing; and WHEREAS, on or about February 7, 2012, the Company filed a Statement of Intent with the cities retaining original jurisdiction within its West Texas service division to increase rates by approximately $11.6 million; and WHEREAS, Atmos West Texas proposed March 13, 2012, as the effective date for its requested increase in rates; and WHEREAS, the City suspended the effective date of Atmos West Texas' proposed rate increase for the maximum period allowed by law and thus extended the City's jurisdiction until June 11, 2012; and Res. R12 -268 Atmos Denial Page 1 of 3 7 8 WHEREAS, the Cities' Executive Committee hired and directed legal counsel and consultants to prepare a common response to the Company's requested rate increase and to negotiate with the Company and direct any necessary litigation; and WHEREAS, Cities' consultants conducted a review of the Company's requested rate increase and found justification that the Company's rates should be decreased; and WHEREAS, Cities hope to achieve settlement with the Company that perpetuates the RRM process prior to the expiration of City jurisdiction; and WHEREAS, if Cities and the Company are unable to reach agreement prior to June 11, 2012, the Company may impose its proposed rates; and WHEREAS, the Executive Committee for the Cities recommends denial of the Company's proposed rate increase in order to continue settlement discussions pending the Company's appeal of Cities' denials to the Railroad Commission of Texas; and WHEREAS, the GURA § 103.022 provides that costs incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS: Res. R12 -268 1. That the rates proposed by Atmos West Texas to be recovered through its gas rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. 2. That the Company shall continue to charge its existing rates to customers within the City and that said existing rates are reasonable. 3. That the City's reasonable rate case expenses shall be reimbursed by the Company. 4. That it is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public as required by law and the public notice of the time, place, and purpose of said meeting was given as required. 5. A copy of this Resolution shall be sent to Atmos West Texas, care of Jeffrey Foley, Vice - President, Rates and Regulatory Affairs, at Atmos Energy Corporation, West Texas Division, 5110 80 Street, Lubbock, Texas 79424, and to Geoffrey Gay, General Counsel to Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767 -1725. Atmos Denial Page 2 of 3 ATTEST: „Le/ / Belinda Hinojosa, City Secretary Res. R12 -268 PASSED AND APPROVED this 8 day of May , 2012. e J ohn C. Anderson, Mayor Atmos Denial Page 3 of 3 9