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2008-002-ORD-APPROVING SETTLEMENT AGREEMENT BETWEEN ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP
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2008-002-ORD-APPROVING SETTLEMENT AGREEMENT BETWEEN ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP
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8/21/2012 12:03:29 PM
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2/5/2008 4:34:56 PM
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CITY CLERK
Doc Name
2008-002-ORD
Doc Type
Ordinance
CITY CLERK - Date
1/28/2008
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WHEREAS, Atmos and ACSC have been in continuing disagreement, dispute, and litigation <br />over the application of Section 104.301 of the Texas Utilities Code and the resulting rate increases <br />( "GRIP surcharges ") established by the RRC; and, <br />WHEREAS, Atmos filed its application for its fourth GRIP surcharge in four years on May <br />31, 2007, seeking to increase the rates of all customers by approximately $12 million annually; and, <br />WHEREAS, the ACSC Cities desire to avoid the litigation expense that would result from <br />another lengthy contested rate case proceeding before the RRC as well as the prosecution of the <br />appeals in various courts of the GRIP surcharges and the two previous system -wide rate decisions; <br />and, <br />WHEREAS, ACSC desires to recoup certain costs it previously incurred in connection with <br />GRIP - related proceedings (costs which Atmos contends are not reimbursable rate case expenses <br />under the Texas Utilities Code), as well as costs incurred in connection with this proceeding; and, <br />WHEREAS, on October 18, 2007, more than 60 ACSC members met in Arlington with <br />officers and executives of Atmos to discuss various issues, including rate making, resulting in a <br />mutual pledge to work toward settlement; and, <br />WHEREAS, ACSC members designated a Settlement Committee made up of ACSC <br />representatives to work with ACSC attorneys and consultants to formulate and review reasonable <br />settlement positions to resolve outstanding matters with Atmos, including the pending rate increase <br />request; and, <br />WHEREAS, the Settlement Committee and lawyers representing ACSC met several times <br />with the Company to negotiate a Settlement Agreement resolving the issues raised in the Company's <br />Statement of Intent filing as well as all outstanding appeals of the two prior rate cases and various <br />GRIP filings; and, <br />WHEREAS, the Settlement Committee, as well as ACSC lawyers and consultants believe <br />existing rates are unreasonable and should be changed; and, <br />WHEREAS, the ACSC Executive Committee recommends ACSC members approve the <br />negotiated Settlement Agreement and attached tariffs; and, <br />WHEREAS, the attached tariffs provide for an expedited rate review process as a substitute <br />to the current GRIP process instituted by the Legislature; and, <br />WHEREAS, the expedited rate review process as provided by the Rate Review Mechanism <br />Tariff eliminates piecemeal ratemaking, the ACSC's major objection to the current GRIP process; <br />and, <br />WHEREAS, the attached tariffs implementing new rates are consistent with the Settlement <br />Agreement and are just, reasonable, and in the public interest; and, <br />
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