HomeMy WebLinkAboutRes 07-47 Suspending the July Atmos Rate AdjustmentRESOLUTION NO.0�7-47
A RESOLUTION BY THE TOWN OF WESTLAKE, TEXAS SUSPENDING THE JULY
30, 2007 EFFECTIVE DATE OF THE PROPOSAL BY ATMOS ENERGY CORP., MID-
TEX DIVISION TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS
UTILITY INVESTMENT IN 2006; AUTHORIZING PARTICIPATION WITH THE
ATMOS CITIES STEERING COMMITTEE ("ACSC") IN A REVIEW AND INQ(.PIRY
INTO THE SUFFICIENCY OF THE FILING AND THE BASIS OF THE PROPOSED
RATE ADJUSTMENTS; AUTHORIZING INTERVENTION IN ADMINISTRATIVE
AND COURT PROCEEDINGS INVOLVING THE PROPOSED GRIP RATE
ADJUSTMENTS; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT RATEMAKING COSTS; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the Town of Westlake, Texas ("Town") is a gas utility customer of Atmos
Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "the Company"), and a regulatory
authority with an interest in the rates and charges of Atmos Mid -Tex; and
WHEREAS, Atmos Mid -Tex made filings with the Town and the Railroad Commission
of Texas ("Railroad Commission") on or about May 31, 2007, proposing to implement interim
rate adjustments ("GRIP rate increases"), pursuant to Texas Utilities Code § 104.301, on all
customers served by Atmos Mid -Tex, effective July 30, 2007; and
WHEREAS, Atmos Mid -Tex was recently granted a rate increase as a result of its filing
in GUD No. 9670, in which the Final Order was only signed on March 29, 2007; and
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid -Tex had
inappropriately included certain expenditures in its prior GRIP rate increases for rate years 2003,
2004, and 2005; and
WHEREAS, it is incumbent upon the Town, as a regulatory authority, to examine this
latest GRIP filing to determine its compliance with the Texas Utilities Code; and
WHEREAS, ratepayers of Atmos Mid -Tex, including the Town and its residents, will be
adversely impacted by the proposed GRIP rate increases; and
WHEREAS, it is advantageous for the Town and its citizens to coordinate the Town's
response to Atmos' filing with similarly situated municipalities; and
WHEREAS, the Town has benefited from prior participation with the Atmos Cities
Steering Committee ("ACSC" ); and
WHEREAS, it is efficient and cost beneficial for the Town to again coordinate review of
the reasonableness of the proposed GRIP rate increases and joint participation in any
proceedings at the Railroad Commission related to .he proposed GRIP rate increases; and
WHEREAS, the Executive Committee of ACSC has recommended suspension and
established a budget for evaluation of the Atmos filing; and
2557121res070608gnc Suspending GRIP
WHEREAS, a GRIP proceeding involves rate malting, entitling cities to reimbursement
of reasonable rate case expenses,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS, THAT:
SECTION 1. The July 30, 2007 effective date of the GRIP rate increases proposed by
Atmos Mid -Tex 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.
SECTION 2. The Town is authorized to cooperate with ACSC to hire and direct legal
counsel and consultants, to negotiate with the Company, to make recommendations to the Town
regarding the proposed GRIP rate increases, and to direct any administrative proceedings or
litigation associated with the proposed GRIP rate increases.
SECTION 3. The Town is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP rate increases.
SECTION 4. Atmos Mid -Tex shall promptly reimburse the Town's reasonable costs
associated with the Town's ratemaking activities related to the proposed GRIP rate increases.
SECTION 5. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Charles
R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED ON THIS 23rd DAY OF JULY 2007.
ATTEST:
Scott Bradley, Mayor
Kim Sutter, TRMC, Town Secretary Trent O. Petty, To pager
2557121res070608gnc Suspending GRIP
APPROVED AS TO F -ORM:
L. Stanton Lowry, Town Attorney
255712Ves070608gnc Suspending, GRIP