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HomeMy WebLinkAboutRES 021412-NWHEREAS, Atmos Energy Corporation ("Atmos" or "Company") filed a Statement of Intent with the City on or about January 31, 2012 to change its rate schedules within the corporate limits of this municipality, specifically to increase its system-wide, annual revenue requirement by approximately $49.0 million which is an increase in base-rate revenue exclusive of cost of gas of approximately 12%; and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURK) and under Chapter 104, §103.001 et seq. of GURA has exclusive original jurisdiction over Atmos' rates, operations, and services within the municipality; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating Atmos' rate request and its changes in tariffs it is prudent to coordinate the City's efforts with a coalition of similarly situated municipalities, and WHEREAS, the City, in matters regarding applications by Atmos to change rates, has in the past joined with other local regulatory authorities to form the Atmos Texas Municipalities ("ATM"), and hereby continues its participation in RESOLUTION NUMBER: PAGE I of 4 6a!L-1 DESCRIPTION: ATMOS Rate Suspension Resolution — 2012 DATE APPROVED: WHEREAS, Atmos' rate request consists of a voluminous amount of information including Atmos' rate-filing package, pre-filed direct testimony, exhibits, schedules, and workpapers; and WHEREAS, Atmos 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' filing by March 6, 2012; and WHEREAS, the City will need an adequate amount of time to review and evaluate Atmos' rate application to enable the City to adopt a final decision as a local regulatory authority with regard to Atmos' requested rate increase; and WHEREAS, the City will require the assistance of specialized legal counsel and rate experts to review the merits of Atmos' application to increase rates; and WHEREAS, to the extent Atmos seeks review at the Railroad Commission of Texas of the City's final decision regarding Atmos' statement of intent to change rates, or should Atmos submit a statement of intent to the Railroad Commission to increase rates in the environs of the City, the decision of the Railroad Commission of Texas could have an impact on the rates paid by the City and its citizens who are customers of Atmos and in order for the City's participation to be meaningful it is important that the City promptly intervene in such proceeding at the Railroad Commission of Texas. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS THAT: Section 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this resolution implements the Vision Statement of the City of Georgetown 2030 Comprehensive Plan. RESOLUTION NUMBER: cglql�-N PAGE 2 of 4 DESCRIPTION: ATMOS Rate Suspension Resolution — 2012 DATE APPROVED: Section 2. Atmos' proposed effective date for its proposed increase in rates is hereby SUSPENDED for ninety (90) days beyond March 6, 2012. Section 3. The statutory suspension period may be further extended if Atmos does not provide timely, meaningful, and proper public notice of its request to increase rates, or if its rate-filing package is materially deficient. Section 4. The City shall participate in a coalition of cities known as the Atmos Texas Municipalities or as "ATM" and authorizes intervention in proceedings related to Atmos' Statement of Intent before the Railroad Commission of Texas and related proceedings in courts of law; and Section 5. The City hereby orders Atmos to pay the City's rate case expenses as provided in the Gas Utility Regulatory Act and that Atmos shall do so on a monthly basis and within 30 days after submission of the City's invoices for the City's reasonable costs associated with the City's activities related to this rate review or to related proceedings involving Atmos before the City, the Railroad Commission of Texas, or any court of law. Section 6. Subject to the right to terminate employment at any time, the City retains and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with regard to rate proceedings involving Atmos before the City, the Railroad Commission of Texas, or any court of law and to retain such experts as may be reasonably necessary for review of Atmos' rate application subject to approval by the steering committee of the ATM. Section 7. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to Atmos for reimbursement. RESOLUTION NUMBER: QaHIP�N PAGE 3 of 4 DESCRIPTION: ATMOS Rate Suspension Resolution — 2012 DATE APPROVED: Section 8. A copy of this resolution shall be sent to Atmos Energy Mid-Tex, care of Mr. David Park, Vice President Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701. Section 9. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 10. This resolution shall become effective from and after its passage. t . PASSED AND APPROVED this dayof George G. Garver, Mayor ica Brettle, City Secretary RESOLUTION NUMBER: QQl91d-N PAGE 4 of 4 DESCRIPTION: ATMOS Rate Suspension Resolution — 2012 DATE APPROVED: