HomeMy WebLinkAboutResolution - 2005-R0599 - Approve GRIP Tariff Implemenation Request By W. TX Division Of Atmos Energy - 12_15_2005Resolution No. 2005-RO599
December 15, 2005
ttem No. 6.14
RESOLUTION
WHEREAS, Section 104.301 of the Texas Utilities Code authorizes a gas utility,
within two years of their last filed rate case, to file with the regulatory authority a tariff or
rate schedule that provides for an interim adjustment in the utility's monthly customer
charge to recover the cost of changes in the investment in service for gas utility services,
also known as the Gas Reliability Infrastructure Program ("GRIP") or an Interim Rate
Adjustment ("IRA"); and
WHEREAS, pursuant to Section 103.001 of the Texas Utilities Code the City
Council of the City of Lubbock is the regulatory authority that has exclusive original
jurisdiction over the rates, operation, and service of a gas utility operating within the
municipality; and
WHEREAS, the West Texas Division of Atmos Energy, last filed a rate case with
the City of Lubbock on October 21, 2003; and
WHEREAS, the West Texas Division of Atmos Energy, on September 2, 2005
filed simultaneously with the City of Lubbock and the Railroad Commission of the State
of Texas a GRIP tariff filing containing the proposed tariff, tariff calculation, earnings
monitoring report and detail project reports; and
WHEREAS, the West Texas Division of Atmos Energy, in their GRIP tariff filing
is requesting an increase of $1.21 per customer per month for Residential Gas Service;
$3.49 for Commercial Gas Service; $38.82 for Small Industrial Gas Service; $17.29 for
Public Authority Gas Service; and $15.18 for State Institution Gas Service; and
WHEREAS, the City of Lubbock, as the regulatory authority, suspended the
implementation of the GRIP tariff increases for a period of forty-five (45) days beginning
on November 2, 2005; and
WHEREAS, the City of Lubbock has been requested to join a coalition of cities in
opposition to Atmos Energy's filing at the Railroad Commission ("Commission"), said
coalition being known as Atmos West Texas Cities Steering Committee, in any appeal of
the cities' actions to the Commission or any original proceedings related to a West Texas
Division GRIP Application; and
WHEREAS, Atmos Energy, appearing before the City Council on December 15,
2005, made certain representations to the City Council regarding their GRIP filing; and
WHEREAS, the City Council of the City of Lubbock finds, in reliance on the
representations made by Atmos Energy at the City Council meeting, that it would be in
the best interest of the residents and businesses of the city of Lubbock to approve Atmos
Energy's GRIP filing; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
1. THAT, pursuant to Section 104.301(a) of the Texas Utilities Code, and
based on the covenants, promises and representations made in the attached agreement and
subject to the attached agreement between the City of Lubbock and Atmos Energy, the
City Council of the City of Lubbock, as the regulatory authority with exclusive original
jurisdiction over the rates, operations and services of Atmos Energy within the municipal
boundaries of the city of Lubbock, approves the implementation of the GRIP tariff
request of the West Texas Division of Atmos Energy as filed by Atmos Energy on
September 2, 2005.
2. THAT, the Mayor is hereby authorized to execute for and on behalf of the
City of Lubbock, an agreement with Atmos Energy, such agreement being attached
hereto and incorporated herein for all purposes as though set forth fully in this resolution.
Passed by the City Council this 15th day of
ATTEST:
"4 ,,
Rebecca Garza, City Secretar
APPROVED AS TO CONTENT:
Lee Ann Dumbauld,
City Manager
APPROVED AS TO FORM:
Matthew L. Wade
Natural Resources Attorney
Resolution No. 2005-RO599
December 15, 2005
Item No. 6.14
2005 GAS RELIABILITY AND INFRASTRUCTURE PROGRAM ("GRIP")
AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK
AND ATMOS ENERGY CORPORATION
This GAS RELIABILITY AND INFRASTRUCTURE PROGRAM ("GRIP")
AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND ATMOS
ENERGY CORPORATION (the "Agreement") is entered into by and between the City
of Lubbock (the "City"), and Atmos Energy Corporation ("Atmos").
RECITALS
WHEREAS, Section 104.301 of the Texas Utilities Code authorizes a gas utility,
within two years of their last filed rate case, to file with the regulatory authority a tariff or
rate schedule that provides for an interim adjustment in the utility's monthly customer
charge to recover the cost of changes in the investment in service for gas utility services,
also known as the Gas Reliability Infrastructure Program ("GRIP") or an Interim Rate
Adjustment ("IRA"); and
WHEREAS, pursuant to Section 103.001 of the Texas Utilities Code the City
Council of the City of Lubbock is the regulatory authority that has exclusive original
jurisdiction over the rates, operation, and service of a gas utility operating within the
municipality; and
WHEREAS, the West Texas Division of Atmos Energy, last filed a rate case with
the City of Lubbock on October 21, 2003; and
WHEREAS, the West Texas Division of Atmos Energy, on September 2, 2005
filed simultaneously with the City of Lubbock and the Railroad Commission of the State
of Texas a GRIP tariff filing containing the proposed tariff, tariff calculation, earnings
monitoring report and detail project reports; and
WHEREAS, the West Texas Division of Atmos Energy, in their GRIP tariff filing
is requesting an increase of $1.21 per customer per month for Residential Gas Service;
$3.49 for Commercial Gas Service; $38.82 for Small Industrial Gas Service; $17.29 for
Public Authority Gas Service; and $15.18 for State Institution Gas Service; and
WHEREAS, the City of Lubbock, as the regulatory authority, suspended the
implementation of the GRIP tariff increases for a period of forty-five (45) days beginning
on November 2, 2005; and
WHEREAS, the City of Lubbock has been requested to join a coalition of cities in
opposition to Atmos Energy's filing at the Railroad Commission ("Commission"), said
coalition being known as Atmos West Texas Cities Steering Committee, in any appeal of
the cities' actions to the Commission or any original proceedings related to a West Texas
Division GRIP Application; and
Atmos GRIP Agreement Page 1 of 4
WHEREAS, Atmos Energy, appearing before the City Council on December 15,
2005, made certain representations to the City Council regarding their GRIP filing; and
WHEREAS, the City Council of the City of Lubbock finds, in reliance on the
representations made by Atmos Energy at the City Council meeting, that it would be in
the best interest of the residents and businesses of the city of Lubbock to approve Atmos
Energy's GRIP filing;
NOW THEREFORE, IN CONSIDERATION OF THE PROMISES AND
REPRESENTATIONS MADE HEREIN:
1. Atmos hereby covenants and agrees to grant to the City any and all
financial, legal, equitable, or other benefits of any kind, nature or character, including
without limitation any dismissal of the GRIP Application, (hereinafter referred to as the
"Benefits") afforded to any municipality within the jurisdiction of the West Texas
Division of Atmos Energy Corporation, including without limitation, to any Benefit
afforded to any coalition of cities in opposition to Atmos' filing at the Railroad
Commission ("Commission"), said coalition being known as Atmos West Texas Cities
Steering Committee, in any proceedings, including the appeal of the cities' actions to the
Commission or any settlement agreement or decree or final order related to any West
Texas Division GRIP Application. Such Benefits shall be granted to the City by Atmos
regardless of whether such Benefits originate or are ordered by a settlement agreement or
decree, a regulatory order or ruling, or by final adjudication in a court of law.
2. The City agrees to approve the GRIP filing by Atmos as filed with the
City on September 2, 2005. The City further agrees not to join any coalition of cities in
opposition to Atmos Energy's 2005 filing at the Railroad Commission ("Commission"),
including, but not limited to, the coalition being known as Atmos West Texas Cities
Steering Committee, in any appeal of the cities' actions to the Commission or any
original proceedings related to a West Texas Division GRIP Application.
3. This Agreement shall be considered a part of and incorporated with any
official action taken by the City in approving the GRIP filing made by Atmos on
September 2, 2005 including but not limited to any resolution passed by the City Council
on December 15, 2005.
4. Nothing contained in this Agreement shall require the City to appear or
support Atmos before any regulatory or legal body regarding any matter including, but
not limited to, any matter associated with any GRIP filing by Atmos.
5. Regardless of any Benefit received by the City pursuant to this
Agreement, Atmos shall not have the authority to assess any fees whatsoever to the City
or its ratepayers associated with obtaining or not obtaining any such Benefit.
6. Nothing contained herein shall have any affect on any franchise granted to
Atmos by the City or any franchise payment associated therewith.
Atmos GRIP Agreement Page 2 of 4
7. This Agreement shall inure to the benefit of, and be binding upon Atmos,
its legal representatives, successors or assigns, and the City, its legal representatives,
successors or assigns. However, no assignment or transfer by either party shall be made
without the prior written consent of the other party, which will not be unreasonably
withheld.
8. All signatories to this Agreement hereby warrant that they have the
authority to execute this Agreement and bind their respective parties.
9. This Agreement states the entire agreement of the parties with respect to
the matters discussed herein, and supersedes all prior or contemporaneous oral or written
understandings, agreements, statements or promises as they pertain to the substance of
this Agreement.
10. This Agreement has been and shall be construed to have been drafted by
all the parties to it so that the rule of construing ambiguities against the drafter shall have
no force or effect.
11. If any portion of this Agreement is held unenforceable by a court of
competent jurisdiction, the remainder of this Agreement shall not be affected and shall
remain fully in force and enforceable.
12. Atmos and the City have consulted with whatever consultants, attorneys,
legal representatives or other advisors they deem appropriate concerning the effect of the
Agreement and each party assumes the risk arising from not seeking further or additional
consultation with such advisors.
13. This Agreement may be executed in a number of identical counterparts,
each of which shall be deemed an original for all purposes.
14. This Agreement is to be construed under Texas law, and all obligations of
the parties created by this Agreement are performable in Lubbock County, Texas unless
superseded by other applicable law. Venue for any action brought pursuant to this
Agreement, or any activity contemplated hereby, shall lie exclusively in Lubbock
County, Texas.
15. If, as a result of either party's breaching this Agreement, the other party
employs an attorney to enforce its rights under this Agreement, then the breaching or
defaulting party will pay the other party the reasonable attorney's fee and costs incurred
to enforce this Agreement.
(This space intentionally left blank)
Atmos GRIP Agreement Page 3 of 4
ATMOS ENERGY CORPORATION
By:
Prin
Tith
Datf
CITY OF LUBBOCK
MCDOUOAL, MAYOR
ATTEST:
Reb&ca Garza, City Secretary
APPROVED AS TO CONTENT:
I1Z AI.U-J�
Le(/Mn Dumbauld, City Manager
APPROVED AS TO FORM:
Mat ew L. Wade, Natural Resources Attorney
Atmos GRIP Agreement Page 4 of 4