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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 Resolution R07-170 Page 1 of 3 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. Resolution R07-170 Page 2 of 3 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 I~ Resolution R07-170 Page 3 of 3