RES 2005-02TOWN OF TROPHY CLUB
RESOLUTION NO. 2005-02
A RESOLUTION BY THE TOWN OF TROPHY CLUB, TEXAS
SUSPENDING THE PROPOSAL BY ATMOS ENERGY CORP. TO
IMPLEMENT INTERIM GRIP RATE ADJUSTMENTS FOR GAS
UTILITY INVESTMENT IN 2003; AUTHORIZING
PARTICIPATION WITH OTHER CITIES SERVED BY ATMOS
ENERGY CORP., MID-TEX DIVISION, IN A REVIEW AND
INQUIRY INTO 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
TOWN TO SERVE ON A STEERING COMMITTEE; REQUIRING
REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES.
WHEREAS, the Town of Trophy Club, 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") in December, 2004, proposing to implement interim rate
adjustments ("GRIP Rate Increases") pursuant to Texas Utilities Code § 104.301 on all customers
served by Atmos Mid -Tex; and
WHEREAS, Atmos Energy Corporation has reported a twenty percent increase in profits
for its fiscal year ended September 30, 2004, and projects further increases in profits in 2005; and
WHEREAS, in May, 2004, the Railroad Commission entered its Final Order in
GUD No. 9400 authorizing a rate increase that will produce additional annual revenues of
$11.5 million for Atmos Mid -Tex; and
WHEREAS, Atmos Mid -Tex has projected that it will experience annual cost savings of
at least 40 million over the costs included in rates approved in GUD No. 9400 and said savings
are likely to greatly exceed the annual revenue requirement associated with any reasonable
increases in invested capital that form the basis of the proposed GRIP rate increases; 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 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 TOWN OF TROPHY CLUB, TEXAS, THAT:
Section 1. The February 15, 2005, effective date of the GRIP Rate Increases
proposed by Atmos Mid -Tex is hereby suspended to permit adequate time to review the proposed
increases, analyze all necessary information, and take appropriate action related to the proposed
increases.
Section 2. The Town 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 Town regarding the proposed GRIP Rate
Increases, and to direct any administrative proceedings or litigation associated with the proposed
GRIP Rate Increases.
Section 3. The Town is authorized to intervene in any administrative proceedings or
litigation associated with the proposed GRIP Rate Increases, including GUD No. 9560, the
Company's proposed GRIP rate increase for its pipeline system filed at the Railroad Commission.
Section 4. The Town hereby designates ' oaek_ Uviaee' as a
representative to a Cities' Steering Committee that shall direct the efforts of counsel and
consultants.
Section 5. Atmos Mid -Tex shall promptly reimburse the Town's reasonable costs
associated with the Town's activities related to the proposed GRIP Rate Increases.
PASSED AND APPROVED BY THE TOWN COUNCIL OF_ THE TOWN
OF TROPHY CLUB, TEXAS, this 3rd day of J
- W .V ROPS
CA
i 00
ATTEST:
Town Secreta y
Town of Trophy Club, Texas
mayor r
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
N
Town Attorney
Town of Trophy Club, Texas