2012-020 RES SUSPENDING MARCH 6, 2012 EFFECTIVE DATE OF ATMOS ENERGY TO PERMIT COP TIME TO STUDY THE REQUEST AND ESTABLISH REASONABLE RATESRESOLUTION NO. 2012-020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE OF ATMOS ENERGY
CORP., MID-TEX DIVISION ("ATMOS MID-TEX") REQUESTED RATE
CHANGE TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO
ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH
ATMOS CITIES STEERING COMMITTEE ("ACSC") AND OTHER CITIES IN
THE ATMOS MID-TEX SERVICE AREA TO HIRE LEGAL AND CONSULTING
SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY
NECESSARY LITIGATION AND APPEALS; REQUIRING REIMBURSEMENT
OF CITIES' RATE CASE EXPENSES; FINDING THAT THE MEETING AT
WHICH THIS RESOLUTION IS PASSSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND ACSCS LEGAL COUNSEL; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on or about January 31, 2012, Atmos Energy Corp., Mid-Tex Division
("Atmos Mid-Tex" or "Company"), pursuant to Gas Utility Regulatory Act § 104.102 filed
with the City of Paris, Texas ("City") a Statement of Intent to change gas rates in all
municipalities exercising original jurisdiction within its Mid-Tex Division service area,
effective March 6, 2012; and,
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under Chapter 104, §104.001 et seq. of GURA has exclusive original
jurisdiction over Atmos Mid-Tex's rates, operations, and services within the City; and,
WHEREAS, in order to maximize the efficient use of resources and expertise, it is
reasonable for the City to maintain its involvement in the Atmos Cities Steering
Committee ("ACSC") and to cooperate with the more than 150 similarly situated city
members of ACSC and other city participants in conducting a review of the Company's
application and to hire and direct legal counsel and consultants and to prepare a common
response and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, it is not possible for the City to complete its review of Atmos Mid-Tex's
filing by March 6, 2012; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
Atmos Mid-Tex's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to Atmos Mid-Tex's requested rate increase; and
WHEREAS, the Gas Utility Regulatory Act §104.107 grants local regulatory
authorities the right to suspend the effective date of proposed rate changes for ninety (90)
days; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by
Cities in ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. That the March 6, 2012, effective date of the rate request submitted by
Atmos Mid-Tex on January 31, 2012, be suspended for the maximum period allowed by law
to permit adequate time to review the proposed changes and to establish reasonable rates.
Section 3. This the City is authorized to cooperate with ACSC and its member
cities in the mid-Tex service area and under the direction of the ACSC Executive Committee
to hire and direct legal counsel and consultants, negotiate with the Company, make
recommendations to the City regarding reasonable rates, and to direct any necessary
administrative proceedings or court litigation associated with an appeal of a rate ordinance
and the rate case filed with the City or Railroad Commission.
Section 4. That the City's reasonable rate case expenses shall be reimbursed by
Atmos.
Section 5. That it is hereby officially found and determined that the meeting at
which this Resolution is passed is open to the public as required by law and the public
notice of the time, place, and purpose of said meeting was given as required.
Section 6. A copy of this Resolution shall be sent to Atmos, care of David Park, Vice
President Rates & Regulatory Affairs, at Atmos Energy Corporation, Mid-Tex Division, 5420
LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to
ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas
78767-1725.
PASSED AND APPROVED thls 27th day of FPhr>>ary, 7017
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ATTEST: N'~ ~_nv~
qice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent cI , City Attorney