Laserfiche WebLink
<br />RESOLUTION NO. 2005-006 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, <br />PARIS, TEXAS, SUSPENDING THE PROPOSAL BY A TMOS- ENERGY <br />CORP. TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR <br />GAS UTILITY INVESTMENT IN 2003; AUTHORIZING <br />P ARTICIP A TION WITH OTHER CITIES SERVED BY A TMOS- <br />ENERGY CORP., MID-TEX DIVISION, IN A REVIEW AND INQUIRY <br />INTO THE BASIS AND REASONABLENESS OF THE PROPOSED RATE <br />ADJUSTMENTS; AUTHORIZING INTERVENTION IN <br />ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE <br />PROPOSED GRIP RATE ADJUSTMENTS; DESIGNATING A <br />REPRESENTATIVE OF THE CITY TO SERVE ON A STEERING <br />COMMITTEE; REQUIRING REIMBURSEMENT OF REASONABLE <br />LEGAL AND CONSULTANT EXPENSES; MAKING OTHER FINDINGS <br />AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING <br />AN EFFECTIVE DATE. <br /> <br />WHEREAS, the City of Paris, Paris, Texas ("City") and/or its residents are gas utility <br />customers of Atmos- Energy Corp., Mid- Tex Division, ("Atmos Mid- Tex" or "the Company") <br />and the City is a regulatory authority with an interest in the rates and charges of Atmos Mid- Tex; <br />and, <br /> <br />WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad Commission <br />of Texas ("Railroad Commission") in December, 2004, proposing to implement interim rate <br />adjustments ("GRIP Rate Increases") pursuant to Texas Utilities Code S 104.301 on all <br />customers served by Atmos Mid- Tex; and, <br /> <br />WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in profits <br />for its fiscal year ended September 30,2004, and projects further increases in profits in 2005; <br />and, <br /> <br />WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in GUD <br />No. 9400 authorizing a rate increase that will provide additional annual revenues of $11.5 million <br />for Atmos Mid-Tex; and <br /> <br />WHEREAS, Atmos Mid- Tex has projected that it will experience annual cost savings of <br />at least $40 million over the costs included in rates approved in GUD No. 9400 and said savings <br />are likely to greatly exceed the annual revenue requirement associated with any reasonable <br />increases in invested capital that form the basis of the proposed GRIP rate increases; and, <br /> <br />WHEREAS ratepayers of Atmos Mid- Tex, including the City and its residents, will be <br />adversely impacted by the proposed GRIP Rate Increases; and, <br />