06-038 - R TOWN OF PROSPER RESOLUTION NO. 06-38
A RESOLUTION BY THE TOWN OF PROSPER, TEXAS SUSPENDING THE MAY
30, 2006, EFFECTIVE DATE OF THE PROPOSAL BY ATMOS ENERGY CORP.,
MID-TEX DIVISION TO IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR
GAS UTILITY INVESTMENT IN 2005; AUTHORIZING PARTICIPATION WITH
THE GAS STANDING STEERING COMMITTEE 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;
REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT
EXPENSES; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL.
WHEREAS, the Town of Prosper, Texas ("Town") 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 Town and the Railroad Commission of
Texas ("Railroad Commission") on or about March 30, 2006, 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 May 30, 2006; and
WHEREAS, a recent rate investigation conducted by consultants for the Gas Standing
Steering Committee has indicated that Atmos Mid-Tex is already collecting sufficient revenues to
earn its allowed return and does not require a GRIP surcharge; 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 Town and its residents, will be
adversely impacted by the proposed GRIP rate increases; and
WHEREAS, the Town and its residents could benefit from coordination with the Gas
Standing Steering Committee 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
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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 TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
1. The May 30, 2006, 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 Town is authorized to cooperate with the Gas Standing Steering Committee to
hire and direct legal counsel and consultants, to negotiate with the Company, to make
recommendations to the Town regarding the proposed GRIP rate increases, and to direct any
administrative proceedings or litigation associated with the proposed GRIP rate increases.
3. The Town 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 Town's reasonable costs associated
with the Town's activities related to the proposed GRIP rate increases.
5. 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 Gas Standing Steering Committee, at Lloyd Gosselink, 816 Congress
Avenue, Suite 1900, Austin, Texas 78701.
Signed this GGZ)tinday of 11 r l , 2006.
Charles Niswa ger, May
A E
Douglas Mousel, Town Administrator
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