06-054- R TOWN OF PROSPER RESOLUTION NO. 06-54
A RESOLUTION OF THE TOWN OF PROSPER DENYING ATMOS
ENERGY CORP., MID-TEX DIVISION'S STATEMENT OF INTENT TO
INCREASE THE GAS UTILITY RATES IN THIS MUNICIPALITY;
SUPPORTING THE REDUCTION OF EXISTING NATURAL GAS
DISTRIBUTION RATES CURRENTLY CHARGED BY ATMOS
MID-TEX WITHIN THE TOWN; ORDERING ATMOS MID-TEX TO
REIMBURSE THE TOWN FOR ITS REASONABLE COSTS INCURRED
IN RATEMAKING PROCEEDINGS OR APPEALS OF SAID
PROCEEDINGS; AUTHORIZING THE ATMOS CITIES STEERING
COMMITTEE TO ACT ON BEHALF OF TOWN AND INTERVENE IN
ANY PROCEEDINGS BEFORE ADMINISTRATIVE OR JUDICIAL
BODIES; REQUIRING DELIVERY OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL; AND FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS ADOPTED IS OPEN TO
THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the Town of Prosper, Texas ("Town") is a regulatory authority under the
Gas Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of
Atmos Energy Corp., Mid-Tex Division(the"Company"); and
WHEREAS, the Town, along with 87 other Atmos Cities Steering Committee ("ACSC")
cities, exercised its authority under §§ 103.001 and 104.151, GURA, to initiate a proceeding to
determine whether the existing rates of the Company were unreasonable or in any way in
violation of any provision of law and ordered the Company to show cause regarding the
reasonableness of its existing natural gas distribution rates within the Town; and
WHEREAS, the Company filed its rate filing package with the Town in response to the
Town's order on or about December 31, 2005, and the Town's representatives obtained
additional information from the Company through written requests for information; and
WHEREAS, the Town's consultants and representatives, through cooperative efforts and
under the direction of the ACSC, reviewed the information and recommended that the Town
reduce the rates charged by the Company within the Town; and
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WHEREAS, by its own action pursuant to GURA § 104.151(a) or by procedural
agreement with the Company, the Town reduced the current natural gas rates charged by the
Company within the Town effective May 31, 2006; and
WHEREAS, the Company has bonded in its existing rates with the Railroad Commission
as part of its appeal of rates set by ACSC cities; and
WHEREAS, as part of its appeal of city rate actions taken by ACSC members, the
Company filed a Statement of Intent to Increase the Gas Utility Rates within the Town effective
July 5, 2006; and
WHEREAS, the Company's request is unreasonable based upon the information already
reviewed by the Town in response to its action initiating the show cause action;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1. That the Statement of Intent to Increase Gas Utility Rates filed by the
Company on or about May 31, 2006, and effective July 5, 2006, is hereby denied.
SECTION 2. That the reduction to current rates previously adopted by the Town
pursuant to ordinance or agreement with the Company is just and reasonable.
SECTION 3. That the Town is authorized to intervene in any appeal of the Town's
action filed at the Railroad Commission of Texas and to otherwise participate in any litigation
associated with the Company's rates charged in the Town, in conjunction with the ACSC.
SECTION 4. That the Company shall promptly reimburse ACSC for ratemaking costs
associated with the Town's activities related to the show cause proceeding and/or the denial of
the Statement of Intent including appeals to the Railroad Commission or Courts, in accordance
with GURA § 103.022.
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SECTION 5. That a copy of this Resolution shall be sent to the Company, care of
Richard T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, P.O. Box 1725, Austin,
Texas 78767-1725.
SECTION 6. That it is hereby officially found and determined that the meeting at which
this Resolution is adopted is open to the public as required by law and that public notice of the
time,place and purpose of said meeting was given as required.
DULY PASSED and approved by the Town Council of the Town of Prosper, Texas, on
this the 13th day of June, 2006.
APPROVED:
Charles Niswanger, Mayor
ATTEST:
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atthew D. Denton, Town Secretary
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