RES 2012-13TOWN OF TROPHY CLUB
RESOLUTION NO. 2012-13
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS DENYING
ATMOS ENERGY CORP., MID-TEX DIVISION'S ("ATMOS MID-TEX")
REQUESTED RATE CHANGE; REQUIRING THE COMPANY TO
REIMBURSE THE TOWN'S REASONABLE RATEMAKING 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, the Town of Trophy Club, Texas (''Town'') is a gas utility customer of Atmos
Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and is a regulatory
authority under the Gas Utility Regulatory Act ("GURA") and under Chapter 1 04,
§104.001 et seq. of GURA, has exclusive original jurisdiction over Atmos Mid-Tex's
rates, operations, and services within the Town; and
WHEREAS, the Town is a member of the Atmos Cities Steering Committee
("ACSC"), a coalition of over 150 similarly situated cities served by the Company that
have joined together to facilitate the review and response to natural gas issues affecting
rates charged in the Atmos Mid-Tex Division; and
WHEREAS, pursuant to the terms of the agreement settling the Company's 2007
Statement of Intent to increase rates, ACSC and the Company worked collectively to
develop a Rate Review Mechanism ("RRM") tariff that allows for an expedited rate
review process controlled in a three-year experiment by ACSC as a substitute to the
current GRIP process instituted by the Legislature; and
WHEREAS, ACSC and the Company agreed to extend the RRM process in
reaching a settlement in 2010 on the third RRM filing; and
WHEREAS, in 2011, ACSC and the Company engaged in good faith
negotiations regarding the continuation of the RRM process, but were unable to come to
ultimate agreement; and
WHEREAS, on or about January 31, 2012, the Company filed a Statement of
Intent with the cities retaining original jurisdiction within its Mid-Tex service division to
increase rates by approximately $49 million; and
WHEREAS, Atmos Mid-Tex proposed March 6,2012, as the effective date for its
requested increase in rates; and
WHEREAS, the Town suspended the effective date of Atmos Mid-Tex's
proposed rate increase for the maximum period allowed by law and thus extended the
Town's jurisdiction until June 4,2012; and
WHEREAS, on April 25, 2012, the Company extended the effective date for its
proposed rates by one week, which similarly extended the Town's jurisdiction until June
11,2012; and
WHEREAS, the ACSC Executive Committee hired and directed legal counsel
and consultants to prepare a common response to the Company's requested rate
increase and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, ACSC's consultants conducted a review of the Company's
requested rate increase and found justification that the Company's rates should be
decreased; and
WHEREAS, ACSC and the Company have engaged in settlement discussions
but will be unable according to Company representations to reach settlement in
sufficient time for cities to act before June 11,2012; and
WHEREAS, failure by ACSC members to take action before June 11, 2012
would allow the Company the right to impose its full request on residents of said ACSC
members; and
WHEREAS, the ACSC Settlement Committee recommends denial of the
Company's proposed rate increase in order to continue settlement discussions pending
the Company's appeal of cities' denials to the Railroad Commission of Texas; and
WHEREAS, the GURA § 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:
1. That the rates proposed by Atmos Mid-Tex to be recovered through its
gas rates charged to customers located within the Town limits, are hereby found to be
unreasonable and shall be denied.
2. That the Company shall continue to charge its existing rates to customers
within the Town and that said existing rates are reasonable.
3. That the Town's reasonable rate case expenses shall be reimbursed by
the Company.
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.
RES 2012-13 Page 2 of 3
5. A copy of this Resolution shall be sent to Atmos Mid-Tex, 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.
6. This Resolution shall become effective upon its passage in accordance with
the law.
PASSED AND APPROVED this 4th day of June, 2012.
ATTEST:
APPROVED TO AS FORM:
atricia A. Adams , Town Attorney
Town of Trophy Club, Texas
RES 2012-13
Connie White, Mayor
Town of Trophy Club, Texas
[SEAL]
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