Loading...
08-19-11-Resolution-Approving a Settlement with Atmos Energy-08/15/2011RESOLUTION 08-19-11 OFAPPROVING SETTLEMENT BETWEEN ATMOS ENERGY CORP 9S MUNICIPALITIES ("ATM") RESULTING IN NO CHANGE IN BASE RATES AND APPROVING TARIFFS WHICH REFLECT COSTS RELATED TO THE STEEL PIPE REPLACEMENT PROGRAM, FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANYAND LEGAL COUN EL;.DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS APPROVED COMPLIED WITH THE OPEN MEETINGS ACT; MAKING SUBJECT;OTHER FINDINGS AND PROVISIONS RELATED TO THE DECLARING AN DATE. WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under §103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation —Mid-Tex Division ("Atmos") rates, operations, and services as a gas utility within the municipality; and, WHEREAS, the City has participated in prior cases regarding Atmos as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), and; WHEREAS, on or about April 1, 2010 Atmos filed for an increase in rates, pursuant to the Rate Review Mechanism ("RPM") of approximately $15.6 million; which represents approximately a $9 million base rate increase and an approximate $6.6 million for the steel pipe replacement program; and, WHEREAS, after months of investigation by ATM's rate experts and weeks of negotiations by ATM'S negotiation team a settlement was arrived at which provides: (1) the steel service line replacement program for this last year be funded through a monthly increase of the residential customer charge of twenty-nine cents and an increase in the commercial customer charge of a dollar and twenty-two cents, (2) there will be no increase in base rates; and (J) Atmos and representatives of ATM will begin meeting in mid -August to begin working on rate - related issues, especially those that are difficult to resolve in the time period called for by the RRM process. WH�&�AS, the Executive Committee of ATM and its lawyers recormnend that the Council approve the attached tariffs which are consistent with the understandings between Atmos and the ATM Executive Committee. Section 1. That the findings set out in the preamble. to this resolution are hereby in all things approved and adopted.. Section 2. The rates contained in the attached tariffs are just and reasonable and are hereby approved subject to a prudence review of the steel pipe replacement expenditures in the next general rate proceeding. Section 3. That a copy of this Resolution shall be sent to Mr. David Park, Vice President for Rates and Regulation, Mid -Tex Division, Atmos Energy Cozporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel for ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701. Section 4. That the meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Govei7nnent Code, Chapter 551. Section 5. That this resolution shall become effective immediately from and after its passage. PASSED and APPROVED this day of August, 2011. 0,0 111111(Bt161///fa/ G F--_ ' -Thomas Muir, Mayor ATTEST: Tami Taber, City Secretary