2007-094-RES-Denying the request of Atmos Energy Corp,, Mid-Tex Division, for an annual Gas Reliability Infrastructure program (GRIP) rate increase in this municipality, as a part of the Company's statewide gas utility Distribution system: supporting stat

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WHEREAS, the City, as a regulatory authority, suspended the July 30, 2007, effective date to examine this latest GRIP filing to determine its compliance with the Texas Utilities Code and Railroad Commission final order in the most recent Atmos Mid-Tex rate case; and, WHEREAS, the City has joined with other cities to review the Company's filing, said coalition being known as Atmos Cities Steering Committee ("ACSC"); and, WHEREAS, the consultant hired by Steering Committee has reviewed the GRIP surcharge application and has issued a final report finding that the Company has included millions of dollars of expenses in the current GRIP surcharge that are inconsistent with the Texas Utilities Code and Railroad Commission final order in the most recent Atmos Mid-Tex rate case and not related to ensuring the safety and reliability of the system; and, WHEREAS, counsel for the Steering Committee, upon review of the Company's filing and the consultant's report, recommends finding that the Company's proposal is unjustified and unreasonable; and, WHEREAS, ratepayers of Atmos Mid-Tex, including the City and its residents, will be adversely impacted by the proposed GRIP rate increases. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the Company's GRIP rate increase request is found to be unreasonable and inconsistent with the Texas Utilities Code and Railroad Commission final order in GUD 9670, Atmos Mid-Tex most recent rate case, and is therefore denied in all respects. Section 3. This Resolution shall become effective immediately from and after its passage, as the law and charter in such cases provide. Section 4. That the City hereby advocates statutory reform of the Texas GRIP statute to ensure fairness to ratepayers and to eliminate piecemeal recovery for any change to invested recovery. Section 5. That the City calls upon its state representatives and senator to support legislation in the 81St Regular Session of the Texas Legislature that would reform the Texas GRIP statute to ensure fairness for ratepayers and eliminate piecemeal recovery for any changes to invested capital. Section 6. That it is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. Section 7. A copy of this Resolution, constituting final action on the Company's application, be forwarded to the following: