HomeMy WebLinkAboutRes 06-32 Suspending the Effective Date of the Proposal by Atmos Energy to Implement the Rate AdjustmentRESOLUTION NO. 06-32
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE,
TEXAS SUSPENDING THE MAY 30, 2006, EFFECTIVE DATE OF THE PROPOSAL BY
ATMOS ENERGY CORP., MID-TEX DIVISION TO IMPLEMENT INTERIM GRIP
RATE ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN 2005; AUTHORIZING
PARTICIPATION WITH THE GAS STANDING STEERING COMMITTEE IN A
REVIEW AND INQUIRY INTO THE SUFFICIENCY OF THE FILING AND THE BASIS
AND REASONABLENESS 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
EXPENSES; 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 March 30, 2006, 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 May 30, 2006; and
WHEREAS, a recent rate investigation conducted by consultants for the Gas Standing
Steering Committee has indicated that Atmos Mid -Tex is already collecting sufficient revenues to
earn its allowed return and does not require a GRIP surcharge; and
WHEREAS, the sufficiency of the filing by Atmos Mid -Tex and its compliance with
statutory mandates is in question and needs to be determined; 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, the Town and its residents could benefit from coordination with the Gas
Standing Steering Committee in a review of the reasonableness of the proposed GRIP rate
increases and joint participation in any proceedings at the Railroad Commission related to the
proposed GRIP rate increases; and
WHEREAS, the reasonable costs associated with the participation of Towns and Cities in
this rate proceeding are reimbursable from Atmos Mid -Tex.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS, THAT:
SECTION 1. The May 30, 2006, 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 the Gas Standing Steering
Committee 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 activities related to the proposed GRIP rate increases.
SECTION 5. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Richard
T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and
to Geoffrey Gay, legal counsel to the Gas Standing Steering Committee, at Lloyd Gosselink, 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
PASSES AND APPROVED ON THIS 22ND DAY OF MAY, 2006.
ATTEST:
4antwi—nnell, To-vm Secretary
APPROV S T RM:
L. Stanton o , Tdwi7rAttomey
2
Scott Bradley, Mayor
Tren etty, To Manager