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2014-017 - Denying the rate increase requested by Atmos Energy Corp., Mid-Tex Division under the Company’s 2014 annual rate review mechanism filing in all cities exercising original jurisdiction; requiring the company to reimburse cities’ reasonabl
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2014-017 - Denying the rate increase requested by Atmos Energy Corp., Mid-Tex Division under the Company’s 2014 annual rate review mechanism filing in all cities exercising original jurisdiction; requiring the company to reimburse cities’ reasonabl
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CITY CLERK
CITY CLERK - Date
5/12/2014
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RESOLUTION NO. 2014 -017 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; <br />DENYING THE RATE INCREASE REQUESTED BY ATMOS ENERGY CORP., <br />MID -TEX DIVISION ( "ATMOS MID -TEX ") UNDER THE COMPANY'S 2014 <br />ANNUAL RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING <br />ORIGINAL JURISDICTION; REQUIRING THE COMPANY TO REIMBURSE <br />CITIES REASONABLE RATEMAKING EXPENSES PERTAINING TO REVIEW <br />OF THE RRM; AUTHORIZING THE CITY'S PARTICIPATION WITH ATMOS <br />CITIES STEERING COMMITTEE IN ANY APPEAL FILED AT THE RAILROAD <br />COMMISSION OF TEXAS BY THE COMPANY; FINDING THAT THE <br />MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE <br />PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS <br />RESOLUTION TO THE COMPANY AND ACSC'S LEGAL COUNSEL; ADDING A <br />SAVINGS CLAUSE; MAKING OTHER FINDINGS AND PROVISIONS <br />RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. <br />WHEREAS, the City of Paris, Texas ( "City ") is a gas utility customer of Atmos Energy <br />Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "Company "), and a regulatory authority with an <br />interest in the rates and charges of Atmos Mid -Tex; and <br />WHEREAS, the City is a member of the Atmos Cities Steering Committee ( "ACSC "), a <br />coalition of approximately 164 similarly situated cities served by Atmos Mid -Tex that have joined <br />together to facilitate the review of and response to natural gas issues affecting rates charged in the <br />Atmos Mid -Tex service area; and <br />WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 <br />Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to <br />develop a Rate Review Mechanism ( "RRM ") tariff that allows for an expedited rate review <br />process controlled in a three -year experiment by ACSC Cities as a substitute to the current Gas <br />Reliability Infrastructure Program ( "GRIP ") process instituted by the Legislature; and <br />WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos <br />Mid -Tex resolving the Company's 2007 rate case and authorizing the RRM tariff, and <br />WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff <br />process for an additional five years; and <br />WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City <br />for an additional five years; and <br />WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities' <br />reasonable expenses associated with RRM applications; and <br />
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