2005-006-RES SUSPENDING PROPOSAL BY ATMOS-ENERGY CORP
RESOLUTION NO. 2005-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, SUSPENDING THE PROPOSAL BY A TMOS- ENERGY
CORP. TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR
GAS UTILITY INVESTMENT IN 2003; AUTHORIZING
P ARTICIP A TION WITH OTHER CITIES SERVED BY A TMOS-
ENERGY CORP., MID-TEX DIVISION, IN A REVIEW AND INQUIRY
INTO THE BASIS AND REASONABLENESS OF THE PROPOSED RATE
ADJUSTMENTS; AUTHORIZING INTERVENTION IN
ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE
PROPOSED GRIP RATE ADJUSTMENTS; DESIGNATING A
REPRESENTATIVE OF THE CITY TO SERVE ON A STEERING
COMMITTEE; REQUIRING REIMBURSEMENT OF REASONABLE
LEGAL AND CONSULTANT EXPENSES; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Paris, Texas ("City") and/or its residents are gas utility
customers of Atmos- Energy Corp., Mid- Tex Division, ("Atmos Mid- Tex" or "the Company")
and the City is a regulatory authority with an interest in the rates and charges of Atmos Mid- Tex;
and,
WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad Commission
of Texas ("Railroad Commission") in December, 2004, proposing to implement interim rate
adjustments ("GRIP Rate Increases") pursuant to Texas Utilities Code S 104.301 on all
customers served by Atmos Mid- Tex; and,
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in profits
for its fiscal year ended September 30,2004, and projects further increases in profits in 2005;
and,
WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in GUD
No. 9400 authorizing a rate increase that will provide additional annual revenues of $11.5 million
for Atmos Mid-Tex; and
WHEREAS, Atmos Mid- Tex has projected that it will experience annual cost savings of
at least $40 million over the costs included in rates approved in GUD No. 9400 and said savings
are likely to greatly exceed the annual revenue requirement associated with any reasonable
increases in invested capital that form the basis of the proposed GRIP rate increases; and,
WHEREAS ratepayers of Atmos Mid- Tex, including the City and its residents, will be
adversely impacted by the proposed GRIP Rate Increases; and,
WHEREAS, the City of Paris and its residents could benefit from coordination with
other cities served by Atmos Mid-Tex ("Cities") in a review of the reasonableness of the
proposed GRIP Rate Increases and joint participation in any proceedings at the Railroad
Commission related to the proposed GRIP Rate Increases; and,
WHEREAS, the reasonable costs associated with the participation of Cities in this rate
proceeding are reimbursable from Atmos Mid-Tex; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to the resolution are hereby in all
things approved.
Section 2. That the February 15,2005, effective date of the GRIP Rate Increase proposed
by Atmos Mid- Tex is hereby suspended to permit adequate time to review the proposed
increases, analyze all necessary information, and take appropriate action related to the proposed
mcreases.
Section 3. That the City of Paris is authorized to cooperate with other Cities to create and
participate in a Steering Committee to hire and direct legal counsel and consultants, to negotiate
with the Company, to make recommendations to the City regarding the proposed GRIP Rate
Increases, and to direct any administrative proceedings or litigation associated with the proposed
GRIP Rate Increases.
Section 4. That the City of Paris is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP Rate Increases, including GUD No.
9560, the Company's proposed GRIP rate increase for its pipeline system filed at the Railroad
Commission.
Section 5. That the City of Paris hereby designates Gene Anderson. as a representative to
a City's Steering committee that shall direct the efforts of counsel and consultants.
Section 6. That Atmos Mid-Tex shall promptly reimburse the City's reasonable costs
associated with the City's activities related to the proposed GRIP Rate Increases.
Section 7. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 10th day of January, 2005.
ATTEST:
~Akn
Sherian Dixon, Assistant City Clerk
APPROVED AS TO FORM: