HomeMy WebLinkAbout12-1386 02-28-2012 RESOLUTION NO. 12-1386
A RESOLUTION OF THE CITY OF EULESS 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 PASSED IS OPEN TO THE PUBLIC AS REQUIRED
BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND ACSC'S LEGAL COUNSEL.
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 Euless ("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, Atmos Mid-Tex proposed March 6, 2012, as the effective date for its
requested increase in rates; 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 EULESS, TEXAS:
SECTION 1.
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 2.
That 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 3.
That the City's reasonable rate case expenses shall be reimbursed by Atmos.
SECTION 4.
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 5.
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.
Resolution No. 12-1386, Page 2 of 3
SECTION 6.
That this Resolution shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
APPROVED AND ADOPTED at a regular meeting of the Euless City Council on
the 28th day of February 2012, by a vote of 5 ayes, 0 nays, and 0
abstentions.
APPROVED: ATTEST:
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Mary Lib =leh, Mayor im •utter, RMC, City Secretary
Resolution No. 12-1386, Page 3 of 3