2006-081-RES-denying ATMOS Energy Corp.
RESOLUTION NO. 2006-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS, DENYING ATMOS ENERGY CORP., MID-TEX DIVISION'S
STATEMENT OF INTENT TO INCREASE THE GAS UTILITY RATES IN
THIS MUNICIPALITY; SUPPORTING THE REDUCTION OF EXISTING
NATURAL GAS DISTRIBUTION RATES CURRENTLY CHARGED BY
A TMOS MID- TEX WITHIN THE CITY; ORDERING ATMOS MID- TEX TO
REIMBURSE THE CITY FOR ITS REASONABLE COSTS INCURRED IN
RATE-MAKING PROCEEDINGS OR APPEALS OF SAID PROCEEDINGS;
AUTHORIZING THE ATMOS CITIES STEERING COMMITTEE TO ACT
ON BEHALF OF CITY AND INTERVENE IN ANY PROCEEDINGS BEFORE
ADMINISTRATIVE OR JUDICIAL BODIES; REQUIRING DELIVERY OF
THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; AND
FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS
ADOPTED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Paris, Paris, Texas ("City") is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos
Energy Corp., Mid. Tex Division (the "Company"); and,
WHEREAS, the City, along with 87 other Atmos Cities Steering Committee ("ACSC") cities,
exercised its authority under ~~ 103.001 and 104.151, GURA, to initiate a proceeding to determine
whether the existing rates of the Company were unreasonable or in any way in violation of any
provision oflaw and ordered the Company to show cause regarding the reasonableness of its existing
natural gas distribution rates within the City; and,
WHEREAS, the Company filed its rate filing package with the City in response to the City's
order on or about December 31,2005, and the City's representatives obtained additional information
from the Company through written requests for information; and,
WHEREAS, the City's consultants and representatives, through cooperative efforts and under
the direction ofthe ACSC, reviewed the information and recommended that the City reduce the rates
charged by the Company within the City; and,
WHEREAS, by its own action pursuant to GURA S 104.151 (a) or by procedural agreement
with the Company, the City reduced the current natural gas rates charged by the Company within the
City effective May 31, 2006; and,
WHEREAS, the Company has bonded in its existing rates with the Railroad Commission as
part of its appeal of rates set by ACSC cities; and,
WHEREAS, as part of its appeal of city rate actions taken by ACSC members, the Company
filed a Statement ofIntent to Increase the Gas Utility Rates within the City effective July 5, 2006; and,
WHEREAS, the Company's request is unreasonable based upon the information already
reviewed by the City in response to its action initiating the show cause action; 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 Statement of Intent to Increase Gas Utility Rates filed by the Company
on or about May 31, 2006, and effective July 5, 2006, is hereby denied.
Section 3. That the reduction to current rates previously adopted by the City pursuant to
ordinance or agreement with the Company is just and reasonable.
Section 4. That the City is authorized to intervene in any appeal of the City's action filed at
the Railroad Commission of Texas and to otherwise participate in any litigation associated with the
Company's rates charged in the City, in conjunction with the ACSC.
Section 5. That the Company shall promptly reimburse ACSC for ratemaking costs associated
with the City's activities related to the show cause proceeding and/or the denial of the Statement of
Intent including appeals to the Railroad Commission or Courts, in accordance with GURA S 103.022.
Section 6. That a copy ofthis Resolution shall be sent to the Company, care of Richard T.
Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to
Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, P.O. Box 1725, Austin, Texas 78767-1725.
Section 7. That it is hereby officially found and determined that the meeting at which this
Resolution is adopted is open to the public as required by law and that public notice ofthe time, place
and purpose of said meeting was given as required.
DULY PASSED and APPROVED by the City Council of the City of Paris, Paris, Texas, on
this the 12th day of June, 2006.
ATTEST:
/
APPROVED AS TO FORM:
;-iJ. ~./)X!J,:(J'k
D. Lestock, Assistant City Attorney
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