HomeMy WebLinkAboutR05-152RESOLUTION NO. R05-152
A RESOLUTION BY PLAINVIEW, TEXAS SUSPENDING THE
PROPOSAL BY ATMOS ENERGY, WEST TEXAS DIVISION TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INVESTMENT IN 2004; AUTHORIZING PAP, TICIPATION WITH OTHER
CITIES SERVED BY ATMOS ENERGY CORP., WEST TEXAS DIVISION,
IN A REVIEW AND INQUIRY INTO THE SUFFICIENCY OF THE FILING
AND THI~ BASIS AND REASONABLENESS OF THE PROPOSED RATE
ADJUSTMENTS; AUTHORIZING INTERVENTION IN ADMINISTRATIVE
AND COURT PROCEEDINGS INVOLVING THE PROPOSED GRIP
RATE ADJUSTMENTS; DESIGNATING A P, EPRESENTATIVE OF THE
CITY TO SERVE ON A STEERING COMMITTEE; RATIFYING THE
SELECTION OF THE LAW FIRM LLOYD GOSSELINK TO REPRESENT
THE CITY; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL
AND CONSULTANT EXPENSES; AND P-,EQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, F=lainview, Texas ("City") is a gas utility customer of Atmos Energy,
West Texas Division, ("Atmos WTX" or "the Company") and a regulatory authority with
an interest in the rates and charges of Atmos WTX; and
WHEREAS, on or about September 11, 2003, Atmos WTX filed a Statement of
Intent to increase rates in all municipalities in the West Texas Division, which was
subsequently resolved at the city level through settlement; and
WHEREAS, Atmos WTX made filings with the City and the Railroad Commission
of Texas ("Railroad Commission") in September 2005, proposing to implement intedm
rate adjustments ("GRIP Rate Increases") pursuant to Texas Utilities Code § 104.301
on all customers serYed by Atmos WTX; and
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase
in net income for its fiscal year ended September 30, 2004, and projects further
increases in profits from its utility operations in 2005; and
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WHEREAS, Atmos Energy Corporation has recently experienced system-wide
cost reductions due to the doubling of its nationwide customer base with the acquisition
of TXU Gas, and has reported to its investors that it has experienced profits in the West
Texas service area where it has weather normalization factors incorporated in its rate
structure; and
WHEREAS, the sufficiency of the filing by Atmos WTX and its compliance with
statutory mandates is in question and needs to be determined; and
WHEREAS, ratepayers of Atmos WTX, including the City and its residents, will
be adversely impacted by the proposed GRIP Rate Increases; and
WHEREAS, the City and its residents could benefit from coordination with other
cities served by Atmos WTX ("Cities") in a review of the reasonableness of the
proposed GRIP Rate Increases and joint participation in any proceedings at the
Railroad Commission related to the proposed GRIP Rate Increases; and
WHEREAS, the reasonable costs associated with the participation of Cities in
this rate proceeding are reimbursable from Atmos WTX;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PLAINVIEW, TEXAS, THAT:
1. The November 1, 2005, effective date of the GRIP Rate Increases
proposed by Atmos WTX is hereby suspended for the maximum period allowed by law
to permit adequate time to investigate the sufficiency of the GRIP rate increase filing,
review the proposed increases, analyze all necessary information, and take appropriate
action related to the proposed increases.
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2. The City is authorized to cooperate with other Cities to create and
participate in a Steering Committee to hire and direct legal counsel and consultants, to
negotiate with the Company, to make recommendations to the City regarding the
proposed GRIP Rate Increases, and to direct any administrative proceedings or
litigation associated with the proposed GRIP Rate Increases.
3. The City ratifies the selection by the Steering Committee formed on
September 23, 2005, of Geoffrey Gay with the law firm of Lloyd Gosselink, in Austin,
Texas, to serve as legal counsel.
4. The City is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP Rate Increases.
5. The City hereby designates Greg Ingham as the City's rePresentative to a
Cities' Steering Committee that shall direct the efforts of counsel and consultants.
6. Atmo$ WTX shall promptly reimburse the City's reasonable costs
associated with the City's activities related to the proposed GRIP Rate Increases.
7. A copy of this Resolution shall be sent to Atmos WTX, care of C.W. "Bill"
Guy, at Atmos Energy Corporation, 5110 80th Street, Lubbock, Texas 79424, and to
Geoffrey Gay, legal counsel to the coalition of cities, at Lloyd Gosselink, 111 Congress
Avenue, Suite 1800, Austin, Texas 78701.
Signed this 11th day of October,
ATTEST:
Belinda Hinojosa, City Secretary
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