R385RESOLUTION NO. 385
RESOLUTION OF THE CITY OF KENNEDALE, TEXAS
SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE OF
ATMOS ENERGY CORP., MID -TEX DIVISION ( "ATMOS MID -
TEX") REQUESTED RATE CHANGE TO PERMIT THE CITY
TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION WITH
ATMOS CITIES STEERING COMMITTEE ( "ACSC ") AND
OTHER CITIES IN THE ATMOS MID-TEX SERVICE AREA TO
HIRE LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY
NECESSARY LITIGATION AND APPEALS; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES;
FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND ACSC'S LEGAL
COUNSEL
WHEREAS, on or about January 31, 2012, At nos Energy Corp., Mid -Tex Division ( "Atmos
Mid -Tex" or "Company "), pursuant to Gas Utility Regulatory Act § 104.102 filed with the City of
Kennedale, Texas ( "City") a Statement of Intent to change gas rates in all municipalities exercising
originaljurisdiction within its Mid -Tex Division service area, effective March 6, 2012; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ( "GURA ")
and under Chapter 104, §104.001 et seq. of GURA has exclusive original jurisdiction over Atmos Mid -
Tex's rates, operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it is reasonable for
the City to maintain its involvement in the Atmos Cities Steering Committee ( "ACSC ") and to cooperate
with the more than 150 similarly situated city members of ACSC and other city participants in conducting
a review of the Company's application and to hire and direct legal counsel and consultants and to prepare
a common response and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, Atmos Mid -Tex proposed March 6, 2012, as the effective date for its requested
increase in rates; and
WHEREAS, it is not possible for the City to complete its review of Atmos Mid - Tex's filing by
March 6, 2012; and
WHEREAS, the City will need an adequate amount of time to review and evaluate Atmos Mid -
Tex's rate application to enable the City to adopt a final decision as a local regulatory authority with
regard to Alums Mid - Tex's requested rate increase; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities the right
to suspend the effective date of proposed rate changes for ninety (90) days; and
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WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by Cities in
ratenraking activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KENNEDALE,TEXAS:
1. That the March 6, 2012, effective date of the rate request submitted by Atmos Mid -Tex
on January 31, 2012, be suspended for the maximum period allowed by law to permit adequate time to
review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with ACSC and its member cities in the Mid -Tex
service area and under the direction of the ACSC Executive Committee to hire and direct legal counsel
and consultants, negotiate with the Company, make recommendations to the City regarding reasonable
rates, and to direct any necessary administrative proceedings or court litigation associated with an appeal
of a rate ordinance and the rate case filed with the City or Railroad Commission.
3. That the City's reasonable rate case expenses shall be reimbursed by Atmos.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time, place, and
purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Atmos, care of David Park, Vice President
Rates & Regulatory Affairs, at Atmos Energy Corporation, Mid -Tex Division, 5420 LBJ Freeway, Suite
1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle
& Townsend, P.C., P.O. Box 1725, Austin, Texas 78767 -1725.
PASSED AND APPROVED this 9 day o bruary 2Z;al�lq
p �� � l
May
ATTEST
City Secretary `
APPROVED AS TO FORM:
(,4-)/ o, �
City Attorney
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