G-06-06-22-9A1 - 6/22/2006ORDINANCE NO. 4' " 010 - 06-4Q a - qA 1
ORDINANCE OF THE CITY OF ROUND ROCK, TEXAS ORDERING THE
DISMISSAL OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION'S
APPLICATION FOR AN INTERIM GAS RELIABILITY INFRASTRUCTURE
PROGRAM ADJUSTMENT FOR CALENDAR YEAR 2005; FINDING THAT
THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on or about March 31, 2006 the Atmos Energy
Corporation's, Mid -Tex Division ("Atmos Energy"or "Atmos") filed an
application with the City of Round Rock, Texas ("City") to increase gas
rates for its Gas Reliability Infrastructure Program ("GRIP") for
calendar year 2005, and
WHEREAS, the GRIP 2005 adjustment, if adopted, would result in an
increase in rates of approximately $12 million, and
WHEREAS, on or about May 31, 2006 Atmos filed a Statement of
Intent to increase rates systemwide by $72 million, and
WHEREAS, the Statement of Intent also included a request to
recover the $12 million for. GRIP 2005, and
WHEREAS, the Texas Legislature never intended to allow Atmos to
be able to request an interim 2005 GRIP adjustment while a general rate
case or Statement of Intent is pending before local and state
regulatory authorities, Now Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
THAT:
Section 1. The statements and findings set out in the preamble to
this ordinance are hereby in all things approved and adopted.
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Section 2.
It is not appropriate for Atmos Energy to request
recovery of an interim GRIP adjustment while a general rate case is
pending.
Section 3. The application for an interim GRIP adjustment for
calendar year 2005 is in all respects dismissed for want of
jurisdiction.
Section 4. The City Secretary is hereby directed to send a true
and correct copy of this ordinance to Mr. Richard Reis, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240-2601 and
to the ATM by sending a true and correct copy of this ordinance to Mr.
Jim Boyle, Special Counsel for the ATM cities, by fax to (512) 474-
2507.
Section 5. This ordinance shall become effective from and after
its passage.
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.
nand
READ, PASSED, and ADOPTED on first reading this day of
, 2006.
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Alternative 2.
READ and APPROVED on first reading this the day of
, 2006.
READ, APPROVED and ADOPTED on second reading this the
day of , 2006.
ALAN f'IC gEAI4l , Mayor PEO.7s4n
City of Round Rock, Texas
AT EST:
0.1n,wt;1.QJ R .i
CHRISTINE R. MARTINEZ, City Sec
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tary
3
DATE: June 16, 2006
SUBJECT: City Council Meeting - June 22, 2006
ITEM: 9.A.1. Consider an ordinance ordering the dismissal of Atmos Energy
Corporation, Mid -Tex Division's Application for an Interim Gas Reliability
Infrastructure Program Adjustment for Calendar Year 2005. (First
Reading)
Department: Administration
Staff Person: David Kautz, Assistant City Manager/CFO
Steve Sheets, City Attorney
Justification:
Atmos filed for a $12 million interim GRIP adjustment on March 31, 2006. On May 31, 2006
Atmos filed a general rate case with the City Secretary for $72 million, including $12 million for
the interim GRIP adjustment. The Texas Legislature authorized interim GRIP adjustments
between general rate cases. The GRIP statute was never intended to permit a request for an
interim adjustment while a general rate case was pending. Further, the City instituted a show
cause proceeding pursuant to GURA § 104.151. Under that statute the City has the authority
to dismiss the pending interim GRIP adjustment request.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: Jim Boyle, Attorney
Background Information:
Under Texas law Atmos may request GRIP only if it has had its rates set as part of a general
rate case within two years prior to making the request for an interim GRIP adjustment. Atmos
Mid -Tex did not exist before October 2004. It has never had its rates set as part of a general
rate case. While it is true that TXU Gas had its rates set in 2004, Atmos Mid -Tex has never
undergone such a review.
Public Comment: N/A