RES 2012-03TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2012-03
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE
OF ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX")
REQUESTED RATE CHANGE TO PERMIT THE TOWN 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; AND PROVIDING 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 Town of Trophy ('Town") 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 Town 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 Town; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it
is reasonable for the Town to maintain its involvement in the Atmos Cities Steering
Committee ("ACSC") and to cooperate with the more than 150 similarly situated Town
members of ACSC and other Town 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 Town to complete its review of Atmos Mid-
Tex's filing by March 6, 2012; and
WHEREAS, the Town will need an adequate amount of time to review and
evaluate Atmos Mid-Tex's rate application to enable the Town 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.
THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, 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 Town 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 Town 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 Town or Railroad
Commission.
Section 3. That the Town'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.
RES 2012-03 Page 2 of 3
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas this the 20th day of February, 2012.
ATTEST:
~nnon DePrater, own Secretary
Town of Trophy Club, Texas
APPROVED TO AS FORM:
Patricia A. Adams , Town Attorney
Town of Trophy Club, Texas
RES 2012-03
06nnie White, Mayor
Town of Trophy Club, Texas
[SEAL]
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