G-05-12-15-8B1 - 12/15/2005ORDINANCE NO. 6-- 05-1 k -) - D i3
AN ORDINANCE OF THE CITY OF ROUND ROCK, TEXAS,
DENYING ATMOS ENERGY CORPORATION'S REQUEST FOR AN
ANNUAL GAS RELIABILITY INFRASTRUCTURE PROGRAM
ADJUSTMENT FOR CALENDAR YEAR 2004 IN THIS
MUNICIPALITY; PROVIDING A REQUIREMENT FOR PROMPT
REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING
THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW; PROVIDING FOR
NOTICE OF THIS ORDINANCE TO ATMOS ENERGY
CORPORATION; AND PROVIDING FOR A SAVINGS CLAUSE AND
REPEALING CONFLICTING ORDINANCES OR RESOLUTIONS.
WHEREAS, on or about September 19, 2005 the Atmos Energy
Corporation's Mid -Tex Division ("Atmos") filed an application with
the City to increase gas rates for its Gas Reliability
Infrastructure Program ("GRIP") pursuant to Section 104.301 of the
Gas Utility Regulatory Act ("GURA" or "Act"), and
WHEREAS, the City has joined with other municipalities in a
coalition of cities known as Atmos Texas Municipalities ("ATM"),
and
WHEREAS, ATM has employed experts to examine the GRIP filing
by Atmos and make a recommendation to the ATM Cities, and
WHEREAS, on October 27, 2005, the City by Resolution No.
R -05-10-27-13B1 suspended the effective date of the GRIP adjustment
until January 2, 2006, and
WHEREAS, after examining the law and undertaking an
investigation of the GRIP filing by ATM's consultants, the
consultants recommend that the GRIP adjustment sought by Atmos be
denied, Now Therefore
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BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS THAT:
I.
All of the above premises are found to be true and correct and
are incorporated into the body of this Ordinance as if copied in
their entirety.
II.
Atmos' request for a GRIP adjustment for calendar year 2004
within the City be denied in all respects.
III.
The costs incurred in reviewing and investigating the merits
of Atmos' application for a GRIP adjustment within the City be'
promptly reimbursed by Atmos.
IV.
This Ordinance shall become effective after its passage.
V.
The City Secretary is hereby directed and authorized to
forward a copy of this ordinance, constituting final action on
Atmos' application to Mr. Richard Reis, Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240.
VI.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this ordinance
shall not invalidate other sections or provisions thereof.
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C. The City Council hereby finds and declares that written
notice of the date, hour, place and subject of the meeting at which
this Ordinance was adopted was posted and that such meeting was
open to the public as required by law at all times during which
this Ordinance and the subject matter hereof were discussed,
considered and formally acted upon, all as required by the Open
Meetings Act, Chapter 551, Texas Government Code, as amended.
Alternative 1.
By motion duly made, seconded and passed with an affirmative
vote of all the Council members present, the requirement for
reading this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this %J day
of , 2005.
Alternative 2.
READ and APPROVED on first reading this the day of
, 2005.
READ, APPROVED and ADOPTED on second reading this the
day of , 2005.
.4/
' " , , . , /
AV i ti
AmwhorZliv
(MAXWELL, Mayor
City of Round Rock, Texas
ATTEST:
CHRISTINE R. MARTINEZ, City Secr ary
3
DATE: December 7, 2005
SUBJECT: City Council Meeting - December 15, 2005
ITEM: 8.B.1. Consider an ordinance denying Atmos Energy Corporations request
for the Gas Reliability Infrastructure Program (GRIP) Adjustment
within the City of Round Rock. (First Reading)
Department: Administration and Legal
Staff Person: David Kautz, Assistant City Manager/CFO
Steve Sheets, City Attorney
Justification:
On September 19, 2005, Atmos Energy filed its 2004 Gas Reliability Infrastructure Program
(GRIP) filing with the City and other cities in the service area. The rate increase would
generate $22.75 million from customers with residential customers paying an additional 29
cents per month and commercial customers an additional 97 cents. The 2004 adjustment
is in addition to the surcharge for 2003 of a similar amount. The City suspended the rate
increase request until January 2, 2006 to allow time to obtain more information.
After researching the issue, the City's consultants have determined that the GRIP
adjustments are not appropriate and recommend that the increase be denied. It is
expected the rate increase will be appealed to the Texas Railroad Commission by Atmos
Energy.
Funding:
Cost:
Source of funds:
Outside Resources: Jim Boyle, Attorney
Background Information: N/A
Public Comment: N/A