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HomeMy WebLinkAboutR16-357343 RESOLUTION NO. R16-357 A RESOLUTION 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 2015 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 RESOLUTION 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 RESOLUTION 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, WTX 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 serving the West Texas Division, which includes the Amarillo, Lubbock, and WTX Cities rate jurisdictions; and WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City to govern rate setting in 2015 and beyond; and WHEREAS, the RRM tariff contemplates reimbursement of Cities' reasonable expenses associated with RRM applications; and WHEREAS, on or about December 1, 2015, the Company filed with the City its first annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates system -wide by $9.6 million, and for WTX Cities by $4.2 million; and 7024772.1 1 344 WHEREAS, WTX Cities coordinated its review of Atmos West Texas' RRM filing through attorneys and consultants used in prior RRM cases, who prepared a report recommending $1.66 million in adjustments; and WHEREAS, the Company reached agreement with WTX Cities to adjust its $4.2 million request by $1 million; 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 Resolution), which will increase the Company's revenues by $3.2 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, BE IT RESOLVED by the City Council of the City of Plainview that: Section 1. That the findings set forth in this Resolution 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 RRM application. Section 4. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 5. That the meeting at which this Resolution 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 Resolution is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Resolution and the remaining provisions of the Resolution 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 Resolution 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, 2016. 7024772.1 2 Section 8. That a copy of this Resolution 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 this 22nd day March, 2016. Wendell Dunlap, Mayor ATTEST: Belinda Hinojosa, City Se 7024772.1 3 345 346 Attachment A WEST TEXAS DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: RESIDENTIAL GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 03/15/2016 Availability 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 Amount Customer Charge $ 16.00 Consumption Charge $ 0.16331 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). Attachment A 347 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 03115/2016 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 $ 40.75 Consumption Charge $ 0.12253 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). 348 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 03/15/2016 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 alternative supply of natural gas. Monthly Rate Amount Customer Charge $ 364.00 Consumption Charge $ 0.08654 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). Attachment A 349 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: PUBLIC AUTHORITY GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bilis Rendered on and after 03/15/2016 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 Amount Customer Charge $ 116.00 Consumption Charge $ 0.10770 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). 350 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 03/15/2016 Application 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 $ 364.00 per month Consumption Charge $ 0.08654 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: Plus 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. Attachment A 351 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 03/15/2016 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 Overpull 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 longer 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.