RES 2007-17RESOLUTION NO. 2007-1 7
A RESOLUTION BY THE TOWN OF TROPHY
CLUB, TEXAS SUSPENDING THE JULY 30, 2007
EFFECTIVE DATE OF THE PROPOSAL BY ATMOS
ENERGY CORP., MID-TEX DIVISION TO
IMPLEMENT IINTERIM eRsls 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 GRlP RATE
ADJUSTMENTS; REQUIRING REIMBURSEMENT
OF REASONABLE LEGAL AND CONSULTANT
RATEMAKING COSTS; REQUIRING DELIVERY OF
THIS RESOLUTION TO THE COMPANY AND
LEGAL COUNSEL; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas ("Town") 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 Town 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 $j 104.301, on all customers served by Atmos
Mid-Tex, effective July 30, 2007; and
WHEREAS, Atmos Mid-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 Atmos Mid-Tex had
inappropriately included certain expenditures in its prior GRlP rate increases for
rate years 2003,2004, and 2005; and
WHEREAS, it is incumbent upon the Town, as a regulatory authority, to
examine this latest GRlP filing to determine its compliance with the Texas
Utilities Code; and
WHEREAS, ratepayers of Atmos Mid-Tex, including the Town and its
residents, will be adversely impacted by the proposed GRlP rate increases; and
WHEREAS, it is advantageous for the Town and its citizens to coordinate
the Town's response to Atmos' filing with similarly situated municipalities; and
WHEREAS, the Town has benefited from prior participation with the
Atmos Cities Steering Committee ("ACSC"); and
WHEREAS, it is efficient and cost beneficial for the Town to again
coordinate review of the reasonableness of the proposed GRlP rate increases
and joint participation in any proceedings at the Railroad Commission related to
the proposed GRlP 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 GRlP proceeding involves rate making, entitling cities to
reimbursement of reasonable rate case expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS, THAT:
Section 1. 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 GRlP
Rate Increase filing, review the proposed increases, analyze all necessary
information, and take appropriate action related to the proposed increases.
Section 2. The Town is authorized to cooperate with ACSC to hire and
direct legal counsel and consultants, to negotiate with the Company, to make
recommendations to the Town regarding the proposed GRlP rate increases, and
to direct any administrative proceedings or litigation associated with the proposed
GRlP rate increases.
Section 3. The Town is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP rate increases.
Section 4. Atmos Mid-Tex shall promptly reimburse the Town's
reasonable costs associated with the Town's ratemaking activities related to the
proposed GRlP rate increases.
Section 5. A copy of this Resolution shall be sent to Atmos Mid-Tex,
care of Charles R. Yarbrough, 11, at Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, legal counsel
to ACSC, at Lloyd Gosselink, 816 Congress Avenue, Suite 1900, Austin, Texas
78701.
This Resolution is effective on this the 23rd day of July, 2007.
C. Nick Sanders, Mayor
ATTEST:
APPROVED AS TO FORM:
Town Attorney, Patricia A. Adams