Resolution 2005-27
RESOLUTION NO. 2005-27(R)
A RESOLUTION BY THE CITY COUNCIL OF WYLIE, TEXAS
SUSPENDING THE PROPOSAL BY ATMOS ENERGY, MID-TEX
DIVISION TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS
FOR GAS UTILITY INVESTMENT IN 2004; AUTHORIZING
PARTICIPATION WITH OTHER CITIES SERVED BY ATMOS
ENERGY CORP., MID-TEX DIVISION, IN A REVIEW AND INQUIRY
INTO THE SUFFICIENCY OF THE FILING AND THE BASIS AND
REASONABLENESS OF THE PROPOSED RATE ADJUSTMENTS;
AUTHORIZING INTERVENTION IN ADMINISTRATIVE AND COURT
PROCEEDINGS INVOLVING THE PROPOSED GRIP RATE
ADJUSTMENTS; DESIGNATING A REPRESENTATIVE OF THE CITY
TO SERVE ON A STEERING COMMITTEE; RATIFYING THE
SELECTION OF THE LAW FIRM LLOYD GOSSELINK TO
REPRESENT THE CITY; REQUIRING REIMBURSEMENT OF
REASONABLE LEGAL AND CONSULTANT EXPENSES; AND
REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY
AND LEGAL COUNSEL.
WHEREAS, Wylie, Texas ("City") is a gas utility customer of Atmos Energy, 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") in September 2005, proposing to implement interim rate adjustments ("GRIP Rate
Increases") pursuant to Texas Utilities Code S 104.301 on all customers served by Atmos Mid-Tex; and
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in net income for its
fiscal year ended September 30, 2004, and projects further increases in profits from its utility operations in
2005; and
WHEREAS, Atmos Energy Corporation has recently experienced system-wide cost reductions due to
the doubling of its nationwide customer base with the acquisition of TXU Gas, and has reported to its
investors that it has experienced profits in its Texas service; and
WHEREAS, the sufficiency of the filing by Atmos Mid-Tex and its compliance with statutory
mandates is in question and needs to be determined; 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, the City and its residents could benefit from coordination with other cities served by
Atmos Mid- Tex ("Cities") in a 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 reasonable costs associated with the participation of Cities in this rate proceeding
are reimbursable from Atmos Mid- Tex;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wylie, Texas, that:
1. The November 19, 2005, 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
Resolution No. 2005-27(R)
A TMOS GRIP
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 other Cities to create and participate in a Steering
Committee to hire and direct legal counsel and consultants, to negotiate with the Company, to
make recommendations to the City regarding the proposed GRIP Rate Increases, and to direct
any administrative proceedings or litigation associated with the proposed GRIP Rate Increases.
3. The City ratifies the selection of the law firm of Lloyd Gosselink, in Austin, Texas, to serve as
legal counsel.
4. The City is authorized to intervene in any administrative proceedings or litigation associated
with the proposed GRIP Rate Increases.
5. The City hereby designates Mark B. Roath, City Manager as the City's representative to a
Cities' Steering Committee that shall direct the efforts of counsel and consultants.
6. Atmos Mid-Tex shall promptly reimburse the City's reasonable costs associated with the City's
activities related to the proposed GRIP Rate Increases.
7. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Richard T. Reis, at Atmos
Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay,
legal counsel to the coalition of cities, at Lloyd Gosselink, 111 Congress Avenue, Suite 1800,
Austin, Texas 78701.
DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas on this
the 25th day of October, 2005.
"Jo~,Eyi~ f
\\' 0 F W/II
" ~I "
" A\. '0...... J- ",
~ r ~ 'laJ~3 ..~~ <' ~
.:: "-J 41.- "Q,.. .,/" ~
~ "fI ;e~ -.(<'-:.
:(~~~)~
... -:...~ ,,/::
.", '" ."
~ J.A t'i.b III 3 "",,Oil .:::
"/ 'Y'r. O..O:J~'. c:, "'~
',,,,'/ I.! [ TE 'f.- ~ ",....'
III" \\'
1111111111\\
Resolution No. 2005-27(R)
A TMOS GRIP