Title
Approving a resolution supporting the activities of the Alliance of Atmos Texas Municipalities (ATM) and other similarly situated coalitions of municipalities opposing rules proposed by the Railroad Commission of Texas that if adopted would greatly diminish cities' ability to effectively and meaningfully evaluate and challenge a utility's proposal to increase its rates.
Summary
This recommended resolution and information is from Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, attorney representing the Atmos Texas Municipalities (ATM). For a number of years, the City has participated in the coalition of cities known as the Atmos Texas Municipalities (“ATM”) whose purpose is to investigate gas utilities’ proposed rate increases and challenge them where appropriate with the use of rate analysis. ATM has been active in most, if not all, major ratemaking proceedings that affect ratepayers in the City. The spreadsheet listing the cost to each city for this effort includes 57 cities. The coalition's attorney is also contacting the Texas Municipal League and other cities across Texas regarding this effort.
Current Texas statutes guarantee Texas cities strong local control over gas utility rates by recognizing their exclusive original jurisdiction over such rates within each city. Texas law also guarantees that utilities must reimburse cities for the reasonable expenses that cities incur while participating in gas ratemaking proceedings both at the City level and before the Railroad Commission of Texas (the “RRC”). On July 25, 2014, the RRC published in the Texas Register three new proposed rules that would greatly diminish, if not entirely eliminate, the City’s ability to ensure that utility rate increases are reasonable by:
1. Requiring that cities fund all rate case expenses out of their own budgets that were incurred while investigating and challenging gas rate increases that utilities propose to the RRC before receiving any reimbursement of expenses the...
Click here for full text