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
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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
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