03-01-12-Resolution-Suspending the Atmos Rate Increase-03/05/2012RESOLUTION #R 03-01-12
RESOLUTION BY THE CITY OF SANGER, TEXAS ("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING OF
ATMOS ENERGY CORPORATION ON OR ABOUT JANUARY 31,
20121 REQUIRING THE REIMBURSEMENT OF MUNICIPAL
RATE CASE EXPENSES; AUTHORIZING PARTICIPATION IN
RELATED RATE PROCEEDINGS; AUTHORIZING THE
RETENTION OF SPECIAL COUNSEL; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, 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 ("GURA") 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 ATM; and
WHEREAS, Atmos' rate request consists of a voluminous amount of information
including Atmos' rate-ng package, pre -filed direct testimony, exhibits, schedules, and
workpapers; and
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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 SANGER9 TEXAS THAT:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if frilly set forth.
Section 2. Atmos' proposed effective date for its proposed increase in rates is hereby
SUSPENDED for ninety 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.
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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
d authorizes the law firm of Herrera & Boyle, PLLC to act as Speci
anal 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.
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.
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Section 10. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this _ 1 day of March 2012,
ATTEST:
Tami Taber, City Secretary
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Thomas Muir, Mayor
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