Resolution 2007-20 RESOLUTION NO. 2007-20 R
A RESOLUTION BY THE CITY OF WYLIE, TEXAS SUSPENDING THE
JULY 30, 2007 EFFECTIVE DATE OF THE PROPOSAL BY ATMOS
ENERGY CORP., MID-TEX DIVISION TO IMPLEMENT INTERIM
GRIP RATE ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN
2006; AUTHORIZING PARTICIPATION WITH THE ATMOS CITIES
STEERING COMMITTEE ("ACSC") IN A REVIEW AND INQUIRY
INTO THE SUFFICIENCY OF THE FILING AND THE BASIS OF THE
PROPOSED RATE ADJUSTMENTS; AUTHORIZING INTERVENTION
IN ADMINISTRATIVE AND COURT PROCEEDINGS INVOLVING THE
PROPOSED GRIP RATE ADJUSTMENTS; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT
RATEMAHING COSTS; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of Wylie, Texas ("City") is a gas utility customer of Atmos Energy
Corp., Mid-Tex Division ("Atmos Mid-Tex" or "the Company"), and a regulatory authority with
an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex made filings with the City and the Railroad Commission
of Texas ("Railroad Commission") on or about May 31, 2007, proposing to implement interim
rate adjustments ("GRIP rate increases"), pursuant to Texas Utilities Code § 104.301, on all
customers served by Atmos Mid-Tex, effective July 30, 2007; and
WHEREAS, Atmos Mid-Tex was recently granted a rate increase as a result of its filing
in GUD No. 9670, in which the Final Order was only signed on March 29, 2007; and
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid-Tex had
inappropriately included certain expenditures in its prior GRII' rate increases for rate years 2003,
2004, and 2005; and
WHEREAS, it is incumbent upon the City, as a regulatory authority, to examine this
latest GRIP filing to determine its compliance with the Texas Utilities Code; and
WHEREAS, ratepayers of Atmos Mid-Tex, including the City and its residents, will be
adversely impacted by the proposed GRIP rate increases; and
WHEREAS, it is advantageous for the City and its citizens to coordinate the City's
response to Atmos' filing with similarly situated municipalities; and
WHEREAS, the City has benefited from prior participation with the Atmos Cities
Steering Committee ("ACSC"); and
Resolution No. 2007-20(R)
ATOMS Energy Corp - Suspending GRIP
2557~2~res070608gnc 1
WHEREAS, it is efficient and cost beneficial for the City to again coordinate review of
the reasonableness of the proposed GRIP rate increases and joint participation in any
proceedings at the Railroad Commission related to the proposed GRIP rate increases; and
WHEREAS, the Executive Committee of ACSC has recommended suspension and
established a budget for evaluation of the Atmos filing; and
WHEREAS, a GRIP proceeding involves rate making, entitling cities to reimbursement
of reasonable rate case expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WYLIE, TEXAS, THAT:
l. The July 30, 2007 effective date of the GRIP rate increases proposed by Atmos
Mid-Tex is hereby suspended for the maximum period allowed by law to permit adequate time to
investigate the sufficiency of the GRIP Rate Increase filing, review the proposed increases,
analyze all necessary information, and take appropriate action related to the proposed increases.
2. The City is authorized to cooperate with ACSC to hire and direct legal counsel
and consultants, to negotiate with the Company, to make recommendations to the City regarding
the proposed GR1P rate increases, and to direct any administrative proceedings or litigation
associated with the proposed GRIP rate increases. .
3. The City is authorized to intervene in any administrative proceedings or litigation
associated with the proposed GRIP rate increases.
4. Atmos Mid-Tex shall promptly reimburse the City's reasonable costs associated
with the City's ratemaking activities related to the proposed GRIP rate increases.
5. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Charles R.
Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
DULY PASSED AND ADOPTED by the City Council of the City of Wylie, Texas this
24`h day of July, 2007.
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Resolution No. 2007-20(R) ~~~~~i ~~~~E ~
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ATOMS Energy Coip - Suspending GRIP
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