HomeMy WebLinkAbout2013-O-08 - RRM_Rate Review Mechanism for ATMOSORDINANCE NO.2013-08
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, ("CITY") APPROVING
AND ADOPTING RATE SCHEDULE "RRM—RATE REVIEW MECHANISM" FOR ATMOS ENERGY
CORPORATION, MID-TEX DIVISION TO BE IN FORCE IN THE CITY FOR A PERIOD OF TIME AS SPECIFIED
IN THE RATE SCHEDULE; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS
PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING
AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND ACSC
LEGAL COUNSEL.
WHEREAS, the City of Stephenville, Texas ("City") is a gas utility customer of Atmos Energy
Corp., Mid -Tex Division ("Atmos Mid -Tex' or "the Company"), and a regulatory authority with an
interest in the rates and charges of Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of
cities, most of whom retain original jurisdiction over the rates and services of Atmos Mid -Tex; and
WHEREAS, in 2007 ACSC member cities and Atmos Mid -Tex collaboratively developed the Rate
Review Mechanism ("RRM") Tariff that allows for an expedited rate review process controlled by cities
as a substitute for the legislatively -constructed Gas Reliability Infrastructure Program ("GRIP"); and
WHEREAS, the GRIP mechanism does not permit the City to review rate increases, and
constitutes piecemeal ratemaking; and
WHEREAS, the RRM process permits City review of requested rate increases and provides for a
holistic review of the true cost of service for Atmos Mid -Tex; and
WHEREAS, the initial RRM tariff expired in 2011; and
WHEREAS, ACSC's representatives have worked with Atmos Mid -Tex to negotiate a renewal of
the RRM process that avoids litigation and Railroad Commission filings; and
WHEREAS, the ACSC's Executive Committee and ACSC's legal counsel recommend ACSC
members approve the negotiated new RRM tariff, and
WHEREAS, the attached Rate Schedule "RRM — Rate Review Mechanism" ("RRM Tariff")
provides for a reasonable expedited rate review process that is a substitute for, and is superior to, the
statutory GRIP process; and
WHEREAS, the expedited rate review process as provided by the RRM Tariff avoids piecemeal
ratemaking; and
WHEREAS, the RRM tariff reflects the ratemaking standards and methodologies authorized by
the Railroad Commission in the most recent Atmos Mid -Tex rate case, G.U.D. No. 10170; and
WHEREAS, the RRM Tariff provides for an annual reduction in Atmos Mid-Tex's requested rate
increase of at least $3 million; and
WHEREAS, the RRM Tariff provides for a lower customer charge than if Atmos Mid -Tex pursued
GRIP filings; and
Atmos RRM Ordinance 1
TEXAS:
WHEREAS, the attached RRM Tariff as a whole is in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds that the RRM Tariff, which is attached hereto and
incorporated herein as Attachment A, is reasonable and in the public interest, and is hereby in force and
effect in the City.
Section 3. That to the extent any resolution or ordinance previously adopted by the City Council
is inconsistent with this Ordinance, it is hereby repealed.
Section 4. That the meeting at which this Ordinance was approved was in all things conducted
in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 5. That if any one or more sections or clauses of this Ordinance is judged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions
of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as if the offending
section or clause never existed.
Section 6. That this Ordinance shall become effective from and after its passage.
Section 7. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Christopher
Felan, Vice President of Rates and Regulatory Affairs for Atmos Mid -Tex Division, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel
to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas
78701.
PASSED AND APPROVED this 4" day of June, 2013.
ATTEST:
Cindy L. Staf d, Cit Secre r
Reviewed by Mark A. Kaiser,
City Administrator
Approved as to form by
Randy Thomas, City Attorney
Jerr K. W I
n II, Mayor
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Atmos RRM Ordinance 2