2007-009OFFICIAL RECORD
RESOLUTION NO. 07-009
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, OPPOSING H.B.
651; SUPPORTING REPEAL OF GAS RELIABILITY INFRASTRUCTURE
PROGRAM (GRIP) STATUTE; AND JOINING CITIES FOR REASONABLE
GAS RATES
WHEREAS, the City of Southlake, Texas (City) was granted by statute the authority to
act as the regulatory body to review rates, operations, and services of gas
utilities to ensure that the gas utility provides fair, just and reasonable rates
and adequate and efficient services to the local citizenry to whom the
governing body is responsible; and
WHEREAS, this system of review has successfully provided for local citizen input,
oversight, and scrutiny of the gas utility's rates, services, and actions by
requiring public hearings before the City and this local process has
allowed for the direct participation of customers to voice their concerns
regarding the rates, services and practices of the gas utility; and
WHEREAS, Cities For Reasonable Gas Rates (CRGR), consisting primarily of
members of the Atmos Cities Steering Committee but open to all cities
throughout the State, is an ad hoc committee that supports the vital role
that local governments play in the one hundred year old system of local
review and regulation of rates, operations, and services of gas utilities;
and
WHEREAS, the City always strives to address rate issues efficiently and economically
in collaboration with the utility at the local level. However, when the City
has reason to believe that the utility is abusing its monopoly position, the
City's ability to initiate a rate investigation is crucial to ensuring that
monopoly gas rates are fair; and
WHEREAS, there has been legislation introduced in the 2007 Regular Session of the
80th Legislature, House Bill 651, which would give the gas utility the
option of opting out of local control over natural gas rates; and
WHEREAS, HB 651 hurts Texans and Texas communities by taking away the City's
ability to initiate a rate investigation when the City has reason to believe
that the monopoly utility is charging rates that are unfair and
unreasonable; and
WHEREAS, HB 651 will add unnecessary rate case expenses by compelling rate
changes and citizen complaints that are routinely settled at the local level
without contested hearings and for minimal cost to be resolved in Austin
through a formal, contested case format; and
WHEREAS, the Gas Reliability Infrastructure Program (GRIP) statute approved in the
2003 Regular Session of the 78th Legislature also eliminates local control
and review over surcharge requests; and
WHEREAS, Texas is the only state out of the twelve states served by Atmos that has a
GRIP statute that allows for piecemeal recovery for any change to
invested capital;
WHEREAS, evidence adduced in the recent Atmos Mid -Tex rate case reveals that
Atmos is abusing the GRIP surcharge process by capitalizing costs that
should be expensed and unreasonably including costs for items like
artwork, lavish meals, limousine service, top of the line office furniture,
luxury accommodations and first-class air travel.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
I.
That the City of Southlake joins with other Texas cities to form Cities for Reasonable
Gas Rates.
II.
That the City hereby requests that the Texas Legislature vote against HB 651 because it
eliminates local regulatory control, scrutiny and oversight of the gas utilities by governing bodies
of municipalities.
That the City hereby advocates the repeal of the Texas GRIP statute because it allows
piecemeal recovery for any change to invested recovery and has been abused by Atmos at the
expense of its ratepayers.
IV.
That the City calls upon its state representatives and senator to advocate against HB 651
and the GRIP Statute and any companion or successive legislation that would eliminate or
weaken the efficient and effective system of local control over natural gas rates, services and
operations.
1
A copy of the resolution shall be sent to the elected lawmakers representing the City's
interests in the Texas House and Senate and to CRGR's legal counsel, Geoffrey Gay at 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
PRESENTED AND PASSED on this ,90+kday of F („r , 2007, by a vote
of I ayes and 0 nays at a regular meeting of the City Co Cil of the City of
z;j (CAW, , Texas.
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