HomeMy WebLinkAbout05-1194 01-25-2005RESOLUTION NO. 05 -1194
A RESOLUTION BY THE CITY OF EULESS, TEXAS,
DENYING THE PROPOSAL BY ATMOS ENERGY
CORPORATION TO IMPLEMENT GRIP RATE
ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN 2003;
AUTHORIZING INTERVENTION IN ADMINISTRATIVE AND
COURT PROCEEDINGS INVOLVING THE PROPOSED GRIP
RATE ADJUSTMENTS AND REQUIRING REIMBURSEMENT
OF REASONABLE LEGAL AND CONSULTANT EXPENSES
WHEREAS, the City of Euless, 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 -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 rate
adjustments ( "GRIP Rate Increases ") pursuant to Texas Utilities Code §104.301 on all
customers served by Atmos Mid -Tex; and
WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in GUD No.
9400 authorizing a rate increase that will produce 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 GU 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 and its residents could benefit from a review of the reasonableness
of the proposed GRIP Rate Increases and recommends proceedings at the Railroad
Commission be related to the proposed GRIP Rate Increases; and
WHEREAS, the reasonable costs associated with the participation of Cities in this rate
proceedings are reimbursable from Atmos Mid -Tex.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EULESS, TEXAS, THAT:
Section 1: The February 15, 2005, effective date of the GRIP Rate Increases
proposed by Atmos Mid -Tex is hereby denied and it is recommended to permit an
appeal to the Texas Railroad Commission, where a full review of the proposed
increases, including a full analysis of necessary information will occur and appropriate
action related to the proposed increases will be implemented.
Section 2: The City is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP Rate Increases, the Company's proposed
GRIP rate increase for its pipeline system filed at the Railroad Commission.
Section 3: Atmos Mid -Tex shall promptly reimburse the City's reasonable costs
associated with the City's activities related to the proposed GRIP Rate Increases.
PASSED AND APPROVED by the City Council of the City of Euless, Texas, on this 25th
day of January, 2005, by a vote of 5 ayes, 0 nays, and 0 abstentions.
APPROVED:
Mary Lib S -'eh, Mayor
ATTEST:
u an rim, MC, City Secretary