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HomeMy WebLinkAboutR05-154RESOLUTION NO. 05-154 A RESOLUTION OF THE CITY OF PLAINVIEW, TEXAS, DISMISSING THE REQUEST OF ATMOS ENERGY CORP., WEST TEXAS DIVISION, FOR AN ANNUAL GAS RELIABILITY INFRASTRUCTURE PROGRAM (GRIP) RATE INCREASE IN THIS MUNICIPALITY; APPROVING COOPERATION WITH OTHER CITIES WITHIN THE ATMOS ENERGY CORP., WEST TEXAS DIVISION DISTRIBUTION SYSTEM AS PART OF THE ATMOS WEST TEXAS CITIES STEERING COMMITTEE; AUTHORIZING THE STEERING COMMITTEE TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION; AUTHORIZING INTERVENTION AS RART OF THE STEERING COMMITTEE IN ANY RAILROAD COMMISSION PROCEEDING CONNECTED WITH THE CITY'S ACTION OR WITH A WEST TEXAS REGION GRIP FILING; PROVIDING A REQUIREMENT FOR A PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS RESOLUTION TO ATMOS ENERGY CORP., WEST TEXAS DIVISION WHEREAS, on or about September 2, 2005, Atmos Energy Corp., West Texas Division (the "Company") filed with the City of Plainview, Texas ("City"), a request for an annual gas reliability infrastructure program (GRIP) rate increase for customers on the Company's statewide gas utility system to be effective November 1, 2005; and and WHEREAS, the City Previous y suspended the effective date as allowed by law; WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's request as it pertains to the distribution facilities located within the City, pursuant to Texas Utilities Code §§ 102.001 (b) and 103.001; and WHEREAS, it ~s reasonable for the City of Plainview, Texas to cooperate with other cities in a coalition of cities in opposition to the Corn pany's filing at the Railroad Commission ("Commission"), said coalition being known as Atmos West Texas Cities Steering Committee, in any appeal of the cities' actions to the Commission or any original proceedings related to a West Texas Division GRIP Application; and WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to intervene in rate proceedings filed at the Railroad Commission; and WHEREAS, the Texas Utilities Code § 103.022 provides that costs incurred by the City in ratemaking activities are to De reim ~)ursed by the regulated utility; and Resolution R05-154 Page I of 3 WHEREAS, a GRIP surcharge application is ratemaking; and WHEREAS, counsel and rate consultants for the Steering Committee, upon review of the Company's filipg recommend finding that the Company's proposal is materially deficient, in conflict with statutory provisions and intent, unjustified and unreasonable. NOW, THEREFORE BE It RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLAINVlEW, TEXAS: SECTION 1. That the Company's GRIP rate increase request is found to be materially deficient, in conflict with the statutory provisions and intent, unjustified and unreasonable in the following particulars: Customer notice describing the proposed rate change and ~mpact is i ~adequate; Proposed tariff language ~s inconsistent with the authorizing statute ar d inadequate to allow a reasonable person to calculate ! ~e tariffed rate; Workpapers supporting calculations in the infrastructure adjustme~ and earnings monitoring report are insufficient; Failure to comply with the statute regarding vintage of projects included in the infrastructure and rate adjustment calculations; and Reliance on factors not reflected in or supported by the final order in the last rate case (CUD No. 9573). SECTION 2. That the ( Company's Distribution Systel direct legal counsel and recommendations to the City litigation associated with an a ;ity is authorized to cooperate with other Cities within the n that have formed a Steering Committee to hire and consultants, negotiate with the Company, make 'egarding reasonable rates and to direct any necessary leal of this dismissal resolution or any other West Texas GRIP proceeding at the Comn ~ssion. Intervention or participation in RRC proceedings or subsequent related court proceedings is authorized. SECTION 3. That the costs incurred by the City in reviewing the Company's GRIP request shall be promptly, reimbursed by the Company. SECTION 4. This resolution shall become effective immediately from and after its passage, as the law and charter in such cases provide. SECTION 5. That it is hereby officially found and determined that the meeting at which this resolution is passec~ is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. ResOlution R05-154 Page 2 of 3 SECTION 6. A copy of this resolution should be forwarded to the appropriate designated representative of the Corn party within 10 days as follows: Bill Guy, Atmos Energy, West Texas Division, 5110 80th Street, Lubbock, Texas 79424, and to Geoffrey Gay, legal counsel to the coalition of cities, at Lloyd Gosselink, P.O. Box 1725, Austin. Texas 78767-1725. DULY PASS ED and approved by the City Council of the City of Plainview, Texas, on this the 13th day of December, 2005. APPROVED: ~hn C. Anders~n, IViayor APPROVED AS TO FORM: ATTEST: Be nda Hinojosa. City Secretary ce, City Attorney Resolution R05-t 54 Page 3 of 3