HomeMy WebLinkAbout2013-O-18 - Resolution between Steering Commity and Atmos Energyn
ORDINANCE NO. 2013-18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, APPROVING A
NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY
CORP., MID-TEX DIVISION REGARDING THE COMPANY'S 2013 ANNUAL RATE REVIEW MECHANISM
FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST
AND REASONABLE; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING
EXPENSES; REPEALING CONFLICTING RESOLUTIONS OR ORDINANCES; DETERMINING THAT THIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; PROVIDING A MOST FAVORED
NATIONS CLAUSE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE
STEERING COMMITTEE'S 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 "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
approximately 164 similarly situated cities served by Atmos Mid -Tex that have joined together to
facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid -Tex
service area; and
WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 Statement of
Intent to increase rates, ACSC Cities and the Company worked collaboratively to develop a Rate Review
Mechanism ("RRM") tariff that allows for an expedited rate review process controlled in a three-year
experiment by ACSC Cities as a substitute to the current Gas Reliability Infrastructure Program ("GRIP")
process instituted by the Legislature; and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos Mid -Tex
resolving the Company's 2007 rate case and authorizing the RRM tariff; and
WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff process for
an additional five years; and
WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City for an
additional five years; and
WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities' reasonable
expenses associated with RRM applications; and
WHEREAS, on or about July 15, 2013, the Company filed with the City its first annual RRM filing
under the renewed RRM tariff, requesting to increase natural gas base rates by $22.7 million; and
Atmos Rate Ordinance —Page 1
WHEREAS, ACSC coordinated its review of Atmos Mid-Tex's RRM filing through its Executive
Committee, assisted by ACSC attorneys and consultants, to resolve issues identified by ACSC in the
fl Company's RRM filing; and
WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel and consultants,
recommend that ACSC Cities approve the attached rate tariffs ("Attachment A" to this Ordinance),
which will increase the Company's revenues by $16.6 million; and
WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated
resolution reached by ACSC Cities and are just, reasonable, and in the public interest;
TEXAS:
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 the existing rates for natural gas service provided by
Atmos Mid -Tex are unreasonable and new tariffs which are attached hereto and incorporated herein as
Attachment A, are just and reasonable and are hereby adopted.
Section 3. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC
Cities in processing the Company's RRM application.
Section 4. That to the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Ordinance, it is hereby repealed.
Section 5. 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 6. That if any one or more sections or clauses of this Ordinance is adjudged 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 7. That if ACSC determines any rates, revenues, terms and conditions, or benefits
resulting from a Final Order or subsequent negotiated settlement approved in any proceeding
addressing the issues raised in Atmos' 2013 RRM filing would be more beneficial to the ACSC Cities than
the terms of the attached tariffs, then the more favorable rates, revenues, terms and conditions, or
benefits shall additionally and automatically accrue to the ACSC Cities, including the City, without the
need for City to take any further action. If this automatic adjustment occurs, Atmos Mid -Tex shall
promptly thereafter file with the City an amended tariff documenting the adjustment to rates.
Section 8. That this Ordinance shall become effective from and after its passage with rates
authorized by attached tariffs to be effective for bills rendered on or after November 1, 2013.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris Felan,
Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862,
Atmos Rate Ordinance —Page 2
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 this 1" day of October, 2013.
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JerryC. W I Ion II, Mayor
ATTEST:
Cindy L. 5 a ford, City Se6Wary
Reviewed by Mark A. Kaiser,
City Administrator
C�
Randy Thomas, City Attorney
Approved as to form and legality
Atmos Rate Ordinance —Page 3