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
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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.
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ATTEST:
„Le/ /
Belinda Hinojosa, City Secretary
Res. R12 -268
PASSED AND APPROVED this 8 day of May , 2012.
e
J ohn C. Anderson, Mayor
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