RES 2008-06TOWN OF TROPHY CLUB
RESOLUTION NO.2008-06
A RESOLUTION OF THE TOWN OF TROPHY CLUB
DETERMINING THE CURRENT RATES OF THE ATMOS
ENERGY CORPORATION,MID-TEX DIVISION TO BE
UNJUST AND UNREASONABLE;PROVIDING FOR A
REASONABLE NOTICE AND HEARING;FINDING THAT
THE MEETING COMPLIED WITH THE OPEN MEETINGS
ACT;AND DECLARING AN EFFECTIVE DATE.
WHEREAS,Atmos Energy Corporation -Mid-Tex Division ("Atmos")filed
a Statement of Intent with the Town of Trophy Club,Texas ("Town")on
September 20,2007 to increase its system-wide,annual revenue requirement,
by approximately $51.9 million;and
WHEREAS,the City is a regulatory authority under the Gas Utility
Regulatory Act ("GURA")and under §103.001 of GURA has exclusive original
jurisdiction over Atmos'rates,operations,and services of a gas utility within the
municipality;and
WHEREAS,the City has,by previous ordinance or resolution,denied
the requested rate increase,authorized participation in a coalition of cities
known as Atmos Texas Municipalities ("ATM")and authorized the hiring of
lawyers and rate experts;and
WHEREAS,Atmos has appealed the previous ordinance or resolution to
the Railroad Commission of Texas,which has docketed the appeal along with
other appeals as Gas Utilities Docket No.9762;and
WHEREAS,ATM has conducted extensive discovery upon Atmos and
has engaged in extensive negotiations regarding the appropriate rates and rate
structure for Atmos;and
WHEREAS,Atmos and ATM have entered into a settlement agreement
resolving all disputes regarding the appropriate rates,terms and conditions for
Atmos;and
WHEREAS,Atmos and ATM have determined that the best method to
implement such settlement agreement is to have it approved by each ATM city;
and
WHEREAS,in order for City to examine the settlement agreement,it
must reestablish its original jurisdiction over the rates of Atmos;and
WHEREAS,the Gas Utilities Regulatory Act authorizes municipalities
exercising original jurisdiction over gas utilities to issue a Show Cause as to
their rates,terms and conditions,
NOW THEREFORE,BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB THAT:
Section 1.That the statements set out in the preamble to this resolution
are hereby in all things approved and adopted.
Section 2.Pursuant to Utilities Code Section 104.151,the City finds
that the existing rates,terms and conditions of Atmos are unreasonable and
determines that Atmos should Show Cause why such rates,terms and conditions
should not be changed.
Section 3.In light of the fact that a settlement agreement has been
reached between Atmos and ATM resolving all issues,it is reasonable to
proceed to a hearing on the settlement agreement without additional notice to
Atmos and it is reasonable to hold such hearing at the same city council meeting
as the meeting at which this resolution is adopted.
Section 4.The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act,Texas
Government Code,Chapter 551.
Section 5.This resolution shall become effective from and after its
passage.
PASSED and APPROVED by the Town Council of the Town of Trophy
Club,Texas on this 3'd day of March 2008.~~
Mayor of Trophy Club,Nick Sanders,
ATTEST:
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APPROVED AS TO FORM:
Town Attorney,Patricia Adams