07-015 - R TOWN OF PROSPER • RESOLUTION NO. 07-015
A RESOLUTION OF THE TOWN OF PROSPER, TEXAS, OPPOSING H.B. 651;
SUPPORTING REPEAL OF GAS RELIABILITY INFRASTRUCTURE
PROGRAM (GRIP) STATUTE; AND JOINING CITIES FOR REASONABLE
GAS RATES
WHEREAS, the Town of Prosper, Texas ("Town") was granted by statute the authority to act
as the regulatory body to review rates, operations, and services of gas utilities to
ensure that the gas utility provides fair, just and reasonable rates and adequate
and efficient services to the local citizenry to whom the governing body is
responsible; and
WHEREAS, this system of review has successfully provided for local citizen input, oversight,
and scrutiny of the gas utility's rates, services, and actions by requiring public
hearings before the City and this local process has allowed for the direct
participation of customers to voice their concerns regarding the rates, services
and practices of the gas utility; and
WHEREAS, Cities For Reasonable Gas Rates (CRGR), consisting primarily of members of
the Atmos Cities Steering Committee but open to all cities throughout the State,
is an ad hoc committee that supports the vital role that local governments play in
the one hundred year old system of local review and regulation of rates,
operations,and services of gas utilities; and
WHEREAS, the Town always strives to address rate issues efficiently and economically in
collaboration with the utility at the local level. However, when the Town has
reason to believe that the utility is abusing its monopoly position, the Town's
ability to initiate a rate investigation is crucial to ensuring that monopoly gas
rates are fair; and
WHEREAS, there has been legislation introduced in the 2007 Regular Session of the 80th
Legislature,House Bill 651,which would give the gas utility the option of opting
out of local control over natural gas rates; and
WHEREAS, HB 651 hurts Texans and Texas communities by taking away the Town's ability
to initiate a rate investigation when the Town has reason to believe that the
monopoly utility is charging rates that are unfair and unreasonable; and
WHEREAS, HB 651 will add unnecessary rate case expenses by compelling rate changes and
citizen complaints that are routinely settled at the local level without contested
hearings and for minimal cost to be resolved in Austin through a formal,
contested case format; and
WHEREAS, the Gas Reliability Infrastructure Program (GRIP) statute approved in the 2003
Regular Session of the 78th Legislature also eliminates local control and review
over surcharge requests; and
WHEREAS, Texas is the only state out of the twelve states served by Atmos that has a GRIP
statute that allows for piecemeal recovery for any change to invested capital;
WHEREAS, evidence adduced in the recent Atmos Mid-Tex rate case reveals that Atmos is
abusing the GRIP surcharge process by capitalizing costs that should be
expensed and unreasonably including costs for items like artwork, lavish meals,
limousine service, top of the line office furniture, luxury accommodations and
first-class air travel.
THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER,TEXAS, THAT:
I.
That the Town of Prosper joins with other Texas cities to form Cities for Reasonable Gas Rates.
II.
That the Town hereby requests that the Texas Legislature vote against HB 651 because it
eliminates local regulatory control, scrutiny and oversight of the gas utilities by governing bodies of
municipalities.
III.
That the Town hereby advocates the repeal of the Texas GRIP statute because it allows piecemeal
recovery for any change to invested recovery and has been abused by Atmos at the expense of its
ratepayers.
IV.
That the Town calls upon its state representatives and senator to advocate against HB 651 and the
GRIP Statute and any companion or successive legislation that would eliminate or weaken the efficient
and effective system of local control over natural gas rates, services and operations.
V.
A copy of the resolution shall be sent to the elected lawmakers representing the Town's interests
in the Texas House and Senate and to CRGR's legal counsel, Geoffrey Gay at 816 Congress Avenue,
Suite 1900,Austin,Texas 78701.
This Resolution shall take effect immediately upon its passage. RESOLVED THIS THE 27th day
of February,2007.
Charles Niswanger,Mayor
ATTEST TO:
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