2007-067 RES-Suspending the July 30, 2007 effective date of the proposal by Atmos Energy, mid-tex Division to implement interim grip rate adjustments for gas utility investment in 2006RESOLUTION N0. 2007-067
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, SUSPENDING THE JULY 30, 2007 EFFECTIVE DATE OF
THE PROPOSAL BY ATMOS ENERGY, MID-TEX DIVISION TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS UTILITY
INVESTMENT IN 2006; AUTHORIZING PARTICIPATION WITH THE
ATMOS CITIES STEERING COMMITTEE ("ACSC") IN A REVIEW AND
INQUIRY INTO THE SUFFICIENCY OF THE FILING AND THE BASIS 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
RATEMAKING COSTS; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Paris, Texas ("City:) is a gas utility customer of Atmos
Energy, Mid-Tex Division, ("Atmos Mid-Tex" or "the Company") and a regulatory authority with
an interest in the rates and charges of AtmosMid-Tex; and,
WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad Commission of
Texas ("Railroad Commission") on or about May 31, 2007, proposing to implement interim rate
adjustments ("GRIP Rate Increases") pursuant to Texas Utilities Code § 104.301 on all customers
served by Atmos Mid-Tex, effective July 30, 2007; and,
WHEREAS, AtmosMid-Tex was recently granted a rate increase as a result of its filing in
GUD No. 9670, in which the Final Order was only signed on March 29, 2007; and,
WHEREAS, in GUD No. 9670, it was determined that AtmosMid-Tex had inappropriately
included certain expenditures in its prior GRIP rate increases for rate years 2003, 2004, and 2005;
and,
WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine this latest
GRIP filing to determine its compliance with the Texas Utilities Code; 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, it is advantageous for the City and its citizens to coordinate the City's response
to Atmos' filing with similarly situated municipalities; and,
WHEREAS, the City has benefitted from prior participation with the Atmos Cities Steering
Committee ("ACSC"); and,
WHEREAS, it is efficient and cost beneficial for the City to again coordinate 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 Executive Committee of ACSC has recommended suspension and
established a budget for evaluation of the Atmos filing; and,
WHEREAS, a GRIP proceeding involves rate making, entitling cities to reimbursement of
reasonable rate case expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF 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 July 30, 2007, 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 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 tothe 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-Tex 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 Charles
R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to the coalition of cities, at Lloyd Gosselink, 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
Section 7. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 25th day of June, 2007.
ATTEST:
ice Ellis, City Clerk
APPROVED AS TO FORM:
W. Ken cIl ity Attorney
//~ '
ssie Jam Freelen, Mayor
energy
Charles R. Yarbrough, II
Vice President
Rates & Reaulatorv Affairs
June 5, 2007
City Official
Re: Rider GCR -Rate Filing under Docket No. 9670
Enclosed is a Revised Atmos Energy Corp., Mid-Tex Division's Statement of Rider
GCR applicable for the June 2007 billing periods. The original Statement of Rider
GCR contained an incorrect estimated gas cost in Part A. This Revised Statement of
Rider GCR contains the correct estimated gas cost for June 2007. There are no
changes in Part B except for the flow through of the corrected estimated gas cost. No
customers were billed under the original Statement of Rider GCR.
This filing is for informative proposes only and no action is required on your city's part.
Should you have any questions, please tet me know.
Sincerely,
~~~
Attachment
Atmos Energy Corporation
5420 L8J Freeway, Suite 1800
Dallas, TX 75240
P 214-206.2809 F 214-206-2126 Charles.yarbrough®atmosenergy.com
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