HomeMy WebLinkAbout15-3619 ord294
ORDINANCE NO. 15-3619
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS, APPROVING A NEGOTIATED RESOLUTION
BETWEEN THE ATMOS WEST TEXAS CITIES STEERING
COMMITTEE ("WTX CITIES") AND ATMOS ENERGY CORP.,
WEST TEXAS DIVISION REGARDING THE COMPANY'S 2014
RATE REVIEW MECHANISM FILING; DECLARING EXISTING
RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT
REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET
BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE
AND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO
REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES;
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; AND REQUIRING DELIVERY
OF THIS ORDINANCE TO THE COMPANY AND THE WTX CITIES'
LEGAL COUNSEL.
WHEREAS, the City of Plainview, Texas ("City") is a gas utility customer of Atmos Energy
Corp., West Texas Division ("Atmos West Texas" or "Company"), and a regulatory authority with
an interest in the rates and charges of Atmos West Texas; and
WHEREAS, the City is a member of the West Texas Cities Steering Committee ("WTX
Cities"), a coalition of similarly -situated cities served by Atmos West Texas that have joined together
to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos West
Texas service area; and
WHEREAS, pursuant to the terms of the agreement settling the Company's 2013 Statement
of Intent to increase rates, Cities and the Company worked collaboratively to develop a new Rate
Review Mechanism ("RRM") tariff that allows for an expedited rate review process by WTX Cities
as a substitute to the current Gas Reliability Infrastructure Program ("GRIP") process instituted by
the Legislature, and that will establish rates for the WTX Cities based on the system -wide cost of
Atmos Rate 2014 Mechanism
295
serving the West Texas Division, which includes the Amarillo, Lubbock, and WTX Cities rate
jurisdictions; and
WHEREAS, the City passed an ordinance renewing the tariff process for the City to
govern rate setting in 2015 and beyond; and
WHEREAS, the tariff contemplates reimbursement of Cities' reasonable expenses
associated with applications; and
WHEREAS, on or about December 1, 2014, the Company filed with the City its first annual
filing under the renewed ' ' tariff, requesting to increase natural gas base rates system -wide
by $11.8 million, and for WTX Cities by $5 million; and
WHEREAS, WTX Cities coordinated its review of Atmos West Texas' filing through
its Executive Committee, assisted by WTX Cities' attorneys and consultants, to resolve issues
identified in the Company's filing; and
WHEREAS, the Executive Committee, as well as WTX Cities' counsel and consultants,
recommend that WTX Cities approve the attached rate tariffs ("Attachment A" to this Ordinance),
which will increase the Company's revenues by $ 4.3 million; and
WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated
resolution reached by WTX Cities and are just, reasonable, and in the public interest;
NOW, THEREFORE, The City of Plainview Hereby Ordains:
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 West Texas are unreasonable and new tariffs that are attached hereto and incorporated herein
as Attachment A, are just and reasonable and are hereby adopted.
Section 3. That Atmos West Texas shall reimburse the reasonable ratemaking expenses of
the WTX Cities in processing the Company's ' ' application.
Aimos R°ne 2014 Mechanism
296
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 consistent with the City Ordinance that established the RRM process, 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 March 15, 2015.
Section 8. That a copy of this Ordinance shall be sent to Atmos West Texas, care of
Becky Palmer, Vice President of Rates and Regulatory Affairs West Texas Division, Atmos Energy
Corporation, P.O. Box 1121, Lubbock, Texas 79408-1121, and to Geoffrey Gay, General Counsel to
WTX Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900,
Austin, Texas 78701.
PASSED AND APPROVED on first reading this 24th day of March, 2015.
PASSED AND APPROVED on second reading this 14th day of April, 2015.
Belinda Hinojosa, City Secre
Aimos Row 2014 Mechanism
Wert el Dunlap,
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Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
EFFECTIVE DATE:
Availability
RESIDENTIAL GAS SERVICE
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
Bills Rendered on and after 0311512015
This schedule is applicable to general use by Residential customers for heating, cooking, refrigeration,
water heating and other similar type uses. This schedule Is not available for service to premises with an
alternative supply of natural gas.
Monthly Rate
Charge
Customer Charge
Consumption Charge
Amount
$ 15.50
$ 0.14241 per Ccf
The West Texas Division Gas Cost Adjustment Rider applies to this schedule.
The West Texas Division Weather Normalization Adjustment Rider applies to this schedule.
The West Texas Division Rider TAX applies to this schedule.
The West Texas Division Rider FF applies to this schedule.
The West Texas Division Rider RRM applies to this schedule.
Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the
applicable rider(s).
298
Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
COMMERCIAL GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 0311512015
Availability
This schedule is applicable to Commercial customers, including hospitals and churches, for heating,
cooking, refrigeration, water heating and other similar type uses. This schedule is not available for
service to premises with an alternative supply of natural gas.
Monthly Rate
Charge
Customer Charge
Consumption Charge
Amount
$ 38.25
$ 0.11375 per Ccf
The West Texas Division Gas Cost Adjustment Rider applies to this schedule.
The West Texas Division Weather Normalization Adjustment Rider applies to this schedule.
The West Texas Division Rider TAX applies to this schedule.
The West Texas Division Rider FF applies to this schedule.
The West Texas Division Rider RRM applies to this schedule.
Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the
applicable rider(s).
299
Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
INDUSTRIAL GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03115/2015
Availability
This schedule is applicable to the sales to any industrial or commercial customer whose predominant use
of natural gas is other than space heating, cooking, water heating or other similar type uses. Service
under this schedule is available to eligible customers following execution of a contract specifying the
maximum hourly Toad. This schedule is not available for service to premises with an altemative supply of
natural gas.
Monthly Rate
Charge
Amount
Customer Charge
$ 336.50
Consumption Charge
$ 0.08137 per Ccf
The West Texas Division Gas Cost Adjustment Rider applies to this schedule.
The West Texas Division Rider TAX applies to This schedule.
The West Texas Division Rider FF applies to this schedule.
The West Texas Division Rider RRM applies to this schedule.
Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the
applicable rider(s).
300
Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
PUBLIC AUTHORITY GAS SERVICE
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE: Bills Rendered on and after 03/1512015
Availability
This schedule is applicable to general use by Public Authority type customers, including public schools,
for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not
available for service to premises with an alternative supply of natural gas.
Monthly Rate
Charge
Amount
Customer Charge
$ 109.25
Consumption Charge
$ 0.10043 per Ccf
The West Texas Division Gas Cost Adjustment Rider applies to this schedule.
The West Texas Division Weather Normalization Adjustment Rider applies to this schedule.
The West Texas Division Rider TAX applies to this schedule.
The West Texas Division Rider FE applies to this schedule.
The West Texas Division Rider RRM applies to this schedule.
Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the
applicable rider(s).
301
Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
TRANSPORTATION SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03/1512015
Aoolication
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., West Texas Division Distribution System for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility with an estimated annual usage greater than 100,000 Ccf per meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and Ccf charges to the amounts and
quantities due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 336.50 per month
Consumption Charge
$ 0.06137 per Ccf
Upstream Transportation Cost Recovery: The customer is responsible for all upstream
transportation costs.
Retention Adjustment: Plus a quantity of gas equal to the Company's most recently calculated
financial L&U percentage for the twelve months ended September multiplied by the gas received
into Atmos Energy Corporation's West Texas Division for transportation to the customer.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Pius an amount for surcharges calculated in accordance with the applicable rider(s).
Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with
the applicable rider(s).
The West Texas Division Rider RRM applies to this schedule.
Conversions: Units may be converted from Ccf to Mcf or Mmbtu as necessary to comply with the
underlying transportation agreement.
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Attachment A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
TRANSPORTATION SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA -- Inside City Limits (ICL)
EFFECTIVE DATE:
Bilis Rendered on and after 03/15/2015
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company a monthly imbalance fee at the end of each month as defined in the
applicable Transportation Agreement,
Curtailment OverpuII Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the "Index" price reported for the month of delivery in Inside FERC's Gas Market
Report under the heading "West Texas Waha".
Replacement Index
In the event the 'Index" price reported for the month of delivery in Inside FERC's Gas Market Report
under the heading "West Texas Waha" Is no Ionger published, Company will calculate the applicable
imbalance fees utilizing a daily price index recognized as authoritative by the natural gas Industry and
most closely approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive transportation service under this tariff, customer must have the type of meter,
instrumentation, and communication required by Company. Customer must pay Company all costs
associated with the acquisition and installation of the required equipment.
