RE 2007-0626.1
RESOLUTION NO. 2007-0626.1
A RESOLUTION BY THE CITY OF COPPELL, 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 RATEMAKING COSTS;
AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY
AND LEGAL COUNSEL.
WHEREAS, the City of Coppell, 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 GRIP 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
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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
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 COPPELL, TEXAS, THAT:
1. 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 GRIP rate increases, and to direct any administrative proceedings or litigation
associated with the proposed GRIP rate increases.
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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.
Signed this 2t- 'tkay of June, 200
ATTEST:
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APPROVED AS TO FORM:
City Attorney
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