03-06-08-Resolution-Determining the current rates for Atmos Energy unreasonable-03/03/2008RESOLUTION # R 03-06-08
A RESOLUTION OF THE CITY OF SANGER
DETERMINING THE CURRENT RATES OF THE ATMOS
ENERGY CORPORATION, MID-TEX DIVISION TO BE
UNJUST AND UNREASONABLE; PROVIDING FOR A
REASONABLE NOTICE AND HEARING; FINDING THAT
THE MEETING COMPLIED WITH THE OPEN
MEETINGS ACT; AND DECLARING AN EFFECTIVE
DATE
WHEREAS, Atmos Energy Corporation —Mid-Tex Division ("Atmos") filed a
Statement of Intent with the City of Sanger, Texas ("City") on September 20, 2007 to
increase its system -wide, annual revenue requirement, by approximately $51.9 million,
and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory
Act ("GTT? A") and under § 103.001 of GURA has exclusive original jurisdiction over
Atmos' rates, operations, and services of a gas utility within the municipality; and
WHEREAS, the City has, by previous ordinance or resolution, denied the
requested rate increase, authorized participation in a coalition of cities known as Atmos
Texas Municipalities ("ATM") and authorized the hiring of lawyers and rate experts;
WHEREAS, Atmos has appealed the previous ordinance or resolution to the
Railroad Commission of Texas, which has docketed the appeal along with other
appeals as Gas Utilities Docket No. 9762; and
WHEREAS, ATM has conducted extensive discovery upon Atmos and has
engaged in extensive negotiations regarding the appropriate rates and rate structure for
Atmos; and
WHEREAS, Atmos and ATM have entered into a settlement agreement
resolving all disputes regarding the appropriate rates, terms and conditions for Atmos,
and
WHEREAS, Atmos and ATM have determined that the best method to
implement such settlement agreement is to have it approved by each ATM city; and
WHEREAS, in order for City to examine the settlement agreement, it must
reestablish its original jurisdiction over the rates of Atmos; and
WHEREAS, the Gas Utilities Regulatory Act authorizes municipalities
exercising original jurisdiction over gas utilities to issue a Show Cause as to their rates,
terms and conditions,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SANGER, TEXAS THAT:
Section 1. That the statements set out in the preamble to this resolution are
hereby in all things approved and adopted.
Section 2. Pursuant to Utilities Code Section 104.151, the City finds that the
existing rates, terms and conditions of Atmos are unreasonable and determines that
Atmos should Show Cause why such rates, terms and conditions should not be changed.
Sectionlight of the fact that a settlement agreement has been reached
between Atmos and ATM resolving all issues, it is reasonable to proceed to a hearing on
the settlement agreement without additional notice to Atmos and it is reasonable to hold
such hearing at the same city council meeting as the meeting at which this resolution is
adopted.
Section 4. 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 5. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this d day of March 2008.
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