HomeMy WebLinkAboutR07-170RESOLUTION NO. R07-170
A RESOLUTION OF THE CITY OF PLAINVIEW, TEXAS, OPPOSING
H.B. 651; SUPPORTING REPEAL OF GAS RELIABILITY
INFRASTRUCTURE PROGRAM (GRIP) STATUTE; AND JOINING
CITIES FOR REASONABLE GAS RATES
WHEREAS, the City of Plainview, Texas (City) was granted by statute the authority to
act as the regulatory body to review rates, operations, and services of gas utilities to
ensure that the gas utility provides fair, just and reasonable rates and adequate and
efficient services to the local citizenry to whom the governing body is responsible; and
WHEREAS, this system of review has successfully provided for local citizen input,
oversight, and scrutiny of the gas utility's rates, services, and actions by requiring public
hearings before the City and this local process has allowed for the direct participation of
customers to voice their concerns regarding the rates, services and practices of the gas
utility; and
WHEREAS, Cities For Reasonable Gas Rates (CRGR), consisting primarily of
members of the Atmos Cities Steering Committee but open to all cities throughout the
State, is an ad hoc committee that supports the vital role that local governments play in
the one hundred year old system of local review and regulation of rates, operations, and
WHEREAS, the City always strives to address rate issues efficiently and economically
in collaboration with the utility at the local level. However, when the City has reason to
believe that the utility is abusing its monopoly position, the City's ability to initiate a rate
investigation is crucial to ensuring that monopoly gas rates are fair; and
services of gas utilities; and
WHEREAS, there has been legislation introduced in the 2007 Regular Session of the
80th Legislature, House Bill 651, which would give the gas utility the option of opting out
of local control over natural gas rates; and
WHEREAS, HB 651 hurts Texans and Texas communities by taking away the City's
ability to initiate a rate investigation when the City has reason to believe that the
monopoly utility is charging rates that are unfair and unreasonable; and
WHEREAS, HB 651 will add unnecessary rate case expenses by compelling rate
changes and citizen complaints that are routinely settled at the local level without
contested hearings and for minimal cost to be resolved in Austin through a formal,
contested case format; and
WHEREAS, the Gas Reliability Infrastructure Program (GRIP) statute approved in the
2003 Regular Session of the 78th Legislature also eliminates local control and review
over surcharge requests; and
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WHEREAS, Texas is the only state out of the twelve states served by Atmos that has a
GRIP statute that allows for piecemeal recovery for any change to invested capital;
WHEREAS, evidence adduced in the recent Atmos Mid-Tex rate case reveals that
Atmos is abusing the GRIP surcharge process by capitalizing costs that should be
expensed and unreasonably including costs for items like artwork, lavish meals,
limousine service, top of the line office furniture, luxury accommodations and first-class
air travel.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS, THAT:
That the City of Plainview joins with other Texas cities to form Cities for
Reasonable Gas Rates.
That the City hereby requests that the Texas Legislature vote against HB 651
because it eliminates local regulatory control, scrutiny and oversight of the gas utilities
by governing bodies of municipalities.
That the City hereby advocates the repeal of the Texas GRIP statute because it
allows piecemeal recovery for any change to invested recovery and has been abused
by Atmos at the expense of its ratepayers.
IV.
That the City calls upon its state representatives and senator to advocate against
HB 651 and the GRIP Statute and any companion or successive legislation that would
eliminate or weaken the efficient and effective system of local control over natural gas
rates, services and operations.
V.
A copy of the resolution shall be sent to the elected lawmakers representing the
City's interests in the Texas House and Senate and to CRGR's legal counsel, Geoffrey
Gay at 816 Congress Avenue, Suite 1900, Austin, Texas 78701.
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PRESENTED AND PASSED on this 13th day of February, 2007, by a vote of 7
ayes and 0 nays at a regular meeting of the Cit ouncil of the City of Plainview, Texas.
n C. Anderson,(Mayor
ATTEST:
Belinda Hinojosa, City Secret
n
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