O340 OFFICtA1 CttY
SECRETARY'S COPY
ORDINANCE NO. 340
AN ORDINANCE OF THE CITY OF KENNEDALE ENDORSING THE EFFORTS OF
THE ATMOS CITIES STEERING COMMITTEE TO REDUCE RATES OF ATMOS
ENERGY CORP., MID-TEX DIVISION; DENYING ATMOS ENERGY CORP., MID-
TEX DIVISION'S STATEMENT OF INTENT TO INCREASE THE GAS UTILITY
RATES WITHIN THE CITY; AUTHORIZING INTERVENTION IN ANY NECESSARY
PROCEEDINGS AFFECTING CITY'S INTERESTS BEFORE ADMINISTRATIVE OR
JUDICIAL BODIES AND PARTICIPATION WITH THE ATMOS CITIES STEERING
COMMITTEE; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES; FINDING THAT THE MEETING AT WHICH THIS
ORDINANCE IS ADOPTED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;
AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND
LEGAL COUNSEL; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Kennedale, Texas is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter
9 of the Local Government Code; and
WHEREAS, the City of Kennedale ("City") is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos
Energy Corp., Mid-Tex Division (the "Company"); and
WHEREAS, at least 88 Texas municipalities served by the Company required the
Company to file rate filing packages with those cities to show cause regarding the reasonableness
of the Company's current rates in those cities (the "Show Cause Cities"); and
WHEREAS, at least 53 Show Cause Cities have adopted ordinances reducing the
Company's rates to be charged to all customers within those cities; and
WHEREAS, the Company has appealed those rate ordinances of the Show Cause Cities
to the Railroad Commission of Texas under the provisions of the Gas Utilities Regulatory Act;
and
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WHEREAS, the Company filed with the City on or about May 31, 2006, its Statement of
Intent to increase gas utility rates within the City effective July 5, 2006; and
WHEREAS, the City has original jurisdiction to evaluate the Company's request as it
pertains to customers of the Company served from the distribution facilities located within the
City, pursuant to GURA 102.001(b) and 103.001;
WHEREAS, the appeal of the Company's Statement of Intent to increase rates will be
consolidated with the appeals of the Show Cause Cities; and
WHEREAS, GURA § 103.022 provides that costs incurred by the City in ratemaking
activities are to be reimbursed by the regulated utility;
WHEREAS, the City wishes to participate with the Atmos Cities Steering Committee
("ACSC") and be represented by attorneys and consultants representing ACSC;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS:
SECTION 1.
That the City endorses the efforts of ACSC to reduce the rates charged by the Company
within the boundaries of member cities.
SECTION 2.
That the Company's Statement of Intent to increase gas utility rates within the City, as
part of the Company's statewide gas utility system, be denied in all respects.
SECTION 3.
That it is in the best interests of the customers of the Company within the City for the
City to participate through the ACSC in the appeals filed by the Company to the Railroad
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Commission of Texas, and the City's intervention in Railroad Commission proceedings and any
litigation associated with the Company's rates charged in the City is hereby authorized.
SECTION 4.
That the Company shall promptly reimburse the City's reasonable costs associated with
the City's participation in ratemaking proceedings and associated litigation.
SECTION 5.
That it is hereby officially found and determined that a public hearing was held on the
Company's Statement of Intent and that the meeting at which this Ordinance was adopted was
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.
SECTION 6.
A copy of this Ordinance 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 ACSC, at Lloyd Gosselink Blevins Rochelle & Townsend, P.C.,
P.O. Box 1725, Austin, Texas 78767-1725.
SECTION 7.
This ordinance shall be cumulative of all provisions of ordinances of the City of
Kennedale, Texas, except where the provisions of this ordinance are in direct conflict with the
provisions of such ordinances, in which event the conflicting provisions of such ordinances are
hereby repealed.
SECTION 8.
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs and sections of this ordinance are severable, and if any phrase, clause,
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sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
ordinance, since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
SECTION 9.
This ordinance shall be in full force and effect from and after its passage, and it is so
ordained. l
PASSED AND APPROVED this d day of _ , 2006.
APPROVED:
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City Secretary
APPROVED AS TO FORM:
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City Attorney
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