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HomeMy WebLinkAbout2018-O-07 - Atmos RRM ORDINANCE NO. 2018-0-07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM ("RRM") AS A SUBSTITUTION FOR THE ANNUAL INTERIM RATE ADJUSTMENT PROCESS DEFINED BY SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS NEGOTIATED BETWEEN ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "COMPANY") AND THE STEERING COMMITTEE OF CITIES SERVED BY ATMOS; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL FOR THE STEERING COMMITTEE. 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 and similarly-situated Mid-Tex municipalities created the Steering Committee of Cities Served by Atmos to efficiently address all rate and service matters associated with delivery of natural gas; and WHEREAS,the Steering Committee formed an Executive Committee to direct legal counsel and to recommend certain specific actions to all aligned Mid-Tex Cities through resolution or ordinance; and WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering Committee and Atmos Mid-Tex that settled the Company's interim rate filing under Section 104.301 of the Texas Utilities Code (a "GRIP" rate case), the Steering Committee and the Company collaboratively developed a Rate Review Mechanism ("RRM")Tariff, ultimately authorized by the City in 2008,that allows for an expedited rate review process as a substitute for the GRIP process; and WHEREAS, the City has kept some form of a RRM Tariff in place until 2017 when it adopted an ordinance approving an RRM Tariff filing settlement and specifically calling for termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff following the Railroad Commission's decision in a then-pending Atmos Texas Pipeline case (GUD No. 10580); and WHEREAS, the Steering Committee's Executive Committee has recently approved a settlement with the Company on the attached RRM Tariff that contains certain notable improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate of return on equity,acceptance of certain expense adjustments made by the Railroad Commission in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM Tariff application; and WHEREAS,the RRM Tariff contemplates reimbursement of Cities' reasonable expenses associated with RRM Tariff applications; and WHEREAS, the Steering Committee's Executive Committee recommends that all Steering Committee member cities adopt this ordinance and the attached RRM Tariff; and Ordinance No.2018-0-07 Page 1 of 3 WHEREAS,the attached RRM Tariff is just, reasonable and in the public interest, NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the attached RRM Tariff re-establishing a form of Rate Review Mechanism is just and reasonable and in the public interest, and is hereby adopted. Section 3. That Atmos Mid-Tex shall reimburse the Cities' reasonable expenses associated with adoption of this Ordinance and the attached RRM Tariff and in processing future RRM Tariff applications filed pursuant to the attached tariff. Section 4. That to the extent any resolution or ordinance previously adopted by the City 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 this Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That this Ordinance shall become effective from and after its passage. Section 8. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan,Vice President of Rates and Regulatory Affairs,Atmos Energy Corporation, Mid-Tex Division,5420 LBJ Freeway, Suite 1862, Dallas,Texas 75240,and to Geoffrey Gay,General Counsel to Mid-Tex Cities,at Lloyd Gosselink Rochelle &Townsend, P.C., 816 Congress Avenue, Suite 1900,Austin,Texas 78701. PASSED AND APPROVED this 6T" day of March, 2018. J •rry© Weldon, II, Mayor ATTEST: it A. Stacc g, City Sec • 1.111 Ordinance No.2018-0-07 Page 2 of 3 Reviewed by Ayen L. Barnes, City Administrator Randy Thomas, City Attorney Approved as to form and legality Ordinance No.2018-0-07 Page 3 of 3