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Res 12-09 Suspension Atmos Mid-Tex 2012 Rate CaseTOWN OF WESTLAKE RESOLUTION NO. 12-09 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, SUSPENDING THE MARCH 6, 2012, EFFECTIVE DATE OF ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX") REQUESTED RATE CHANGE TO PERMIT THE TOWN 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, Atmos Energy Corp., Mid -Tex Division ("Athos Mid -Tex" or "Company"), pursuant to Gas Utility Regulatory Act § 104.102 filed with the Towel of Westlake ("Town") a Statement of Intent to change gas rates in all municipalities exercising original jurisdiction within its Mid -Tex Division service area, effective March 6, 2012; and WHEREAS, the Town is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under Chapter 104, §104.001 et seq. of LURA has exclusive original jurisdiction over Atmos Mid-Tex's rates, operations, and services within the Town; and WHEREAS, in order to maximize the efficient use of resources and expertise, it is reasonable for the Town 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 Town to complete its review of Atmos Mid-Tex's filing by March 6, 2012; and WHEREAS, the Town will need an adequate amount of time to review and evaluate Atmos Mid-Tex's rate application to enable the Town to adopt a final decision as a local regulatory authority with regard to Atmos Mid-Tex's requested rate increase; and Resolution 12-09 Page 1 of 3 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 WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility. WHEREAS, the Town Council finds that the passage of this Resolution is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 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. SECTION 2: That the Town 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 Town 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 Town or Railroad Commission. SECTION 3: That the Town's reasonable rate case expenses shall be reimbursed by Atmos. SECTION 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. Resolution 12-09 Page 2 of 3 SECTION 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 ON THIS 27TH DAY OF FEBRUARY 2012. ATTEST: Kelly Edw ds, Town Secretary IAZU(A- Y, �kje�L Lau a L. Wheat, Mayor .-el5i'li, . �1�6 Thomas E. 'nlyroll Town Manager i Resolution 12-04 Page 3 of 3