RES 2006-05TOWN OF TROPHY CLUB
RESOLUTION 2006-05
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB,
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 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") on or about March 30, 2006, proposing to implement interim rate adjustments ("GRIP rate
increases"), pursuant to Texas Utilities Code 9 104.301, 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 GRP 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 Towns in this rate proceeding are
reimbursable from Atrnos Mid-Tex;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, THAT:
Section. I 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 GRP Rate Increase filing, 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 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.
Section 3. The Town is authorized to intervene in any administrative proceedings or litigation
associated with the proposed GRIP rate increases.
Sectiort 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.
Section 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.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this the 22nd
day of May 2006.
Nick Sanders
Mayor, Town of Trophy Club, Texas
ATTEST:
Do R(vuyl*? -
own Secretary,
Town of Trophy Club, Texas (
[Seal]
APPROVED AS TO FORM:
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Town of Trophy Club, Texas