2006-065-RES-Atmos Energy, interim grip rate
RESOLUTION NO. 2006-065
A RESOLUTION OF THE CITY COUNCIL OF THE THE CITY OF
PARIS, PARIS, TEXAS SUSPENDING THE MAY 30,2006, EFFECTIVE
DATE OF THE PROPOSAL BY ATMOS ENERGY CORP., MID-TEX
DIVISION TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS
FOR GAS UTILITY INVESTMENT IN 2005; AUTHORIZING
PARTICIPATION WITH THE GAS STANDING STEERING
COMMITTEE IN A REVIEW AND INQUIRY INTO THE SUFFICIENCY
OF THE FILING AND THE BASIS AND REASONABLENESS OF THE
PROPOSED RATE ADJUSTMENTS; AUTHORIZING INTERVENTION
IN ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE
PROPOSED GRIP RATE ADJUSTMENTS; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT
EXPENSES; AND REQUIRING DELIVERY OF THIS RESOLUTION TO
THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of Paris, Texas ("City") is a gas utility customer of Atmos Energy
Corp., Mid- Tex Division, ("Atmos Mid- Tex" or "the Company") and a regulatory authority with
an interest in the rates and charges of Atmos Mid. T ex; and
WHEREAS, Atmos Mid. T ex made filings with the City and the Railroad Commission
of Texas ("Railroad Commission") on or about March 30, 2006, 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, effective May 30,2006; and
WHEREAS, a recent rate investigation conducted by consultants for the Gas Standing
Steering Committee has indicated that Atmos Mid-Tex is already collecting sufficient revenues
to earn its allowed return and does not require a GRIP surcharge; and
WHEREAS, the sufficiency of the filing by Atmos Mid-Tex and its compliance with
statutory mandates is in question and needs to be determined; 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 and its residents could benefit from coordination with the Gas
Standing Steering Committee 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 this resolution are hereby in all
things approved.
Section 2. That the May 30, 2006, effective date of the GRIP rate increases proposed by
Atmos Mid- Tex is hereby suspended for the maximum period allowed by law to permit adequate
time to investigate the sufficiency of the GRIP Rate Increase filing, review the proposed
increases, analyze all necessary information, and take appropriate action related to the proposed
Increases.
Section 3. That the City is authorized to cooperate with the Gas Standing 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 is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP rate increases.
Section 5. That Atmos Mid. T ex shall promptly reimburse the City's reasonable costs
associated with the City's activities related to the proposed GRIP rate increases.
Section 6. That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of
Richard T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to the Gas Standing Steering Committee, at Lloyd
Gosselink, 816 Congress Avenue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 10th day of April, 2006.
)
ice Ellis, City Clerk
APPROVED AS TO FORM:jJ/l A ~
rD, ~~I{
D. Lestock, Assistant City Attorney