07-F Atmos GRIP filing - Laserfiche WebLink

Home Browse Search

l:8JAction CITY OF PARIS, TEXAS CITY COUNCIL AGENDA REQUEST MEETING DATE: I June 25, 2007 D Discussion Dlnformation DRefer to: SUBMITTED BY: I Gene Anderson, Director of Finance DESCRIPTION: Resolution suspending the fourth GRIP(Gas Reliability Infrastructure Program) surcharge request filed by Atmos Energy Corporation Mid- T ex Division for a minimum of 45 days past the proposed effective date of July 30,2007. BACKGROUND INFORMATION: The Gas Reliability Infrastructure Program (GRIP) was originally enacted by the Texas Legislature in 2003 to allow gas utilities an opportunity to recover costs associated with replacing aging portions of natural gas pipeline to enhance reliability and public safety without the necessity of a full blown rate case. However, Atmos-Mid Tex has tried to use the statute to recover any change in invested capital. As a result, Atmos Mid-Tex has attempted to surcharge items not related to system safety or reliability including furniture, artwork, computers, air conditioners, new parking lots, first class airfare, hotels, meals, liquor, employee gifts, limousine travel, and charitable contributions. The last GRIP review also revealed that Atmos capitalized short lived items such as Kleenex, trash can liners, staples, and other office supplies. The purpose of the suspension is to allow additional time for an expert working for the Atmos Cities Steering Committee (Paris is a member.) to review and analyze the surcharge application. Any findings can then be presented to the Railroad Commission in an attempt to block any inappropriate increase. The Atmos Cities Steering Committee will report back to its member cities with recommendations for additional action prior to September 13th. FISCAL AUTHORITY: I Not applicable. LEGAL REVIEW: I MANAGER'S RECOMMENDATION: . .. t r-r'