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HomeMy WebLinkAbout20-3710 ordORDINANCE NO. 20-3710 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF.PLAINVIEW, _ TEXAS, .APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE EXECUTIVE COMMITTEE OF CITIES SERVED BY ATMOS WEST TEXAS ("CITIES") AND ATMOS ENERGY CORP., WEST TEXAS DIVISION- REGARDING- THE COMPANY'S 2020 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 SETTLEMENT TARIFFS TO 'BE' JUST AND REASONABLE AND ' IN THE PUBLIC INTEREST; .APPROVING AN ATTACHED..EXHIBIT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; :APPROVING ANATTACHED EXHIBIT REGARDING AMORTIZATION OF REGULATORY LIABILITY; 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 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 Cities Served:by Atmos West Texas ("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, Cities and the Company worked. collaboratively to develop a new. Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process by Cities as a substitute to the Gas Reliability- Infrastructure :Program ("QRIP") process instituted by the Legislature, and. that will establish rates for Cities based on the system- wide cost of :serving the Atmos West Texas service area; and WHEREAS, the RRM: tariff was adopted by the City in a rate ordinance in 2018; and WHEREAS, on about'March 31, 2020, Atmos West Texas filed its 2020- RRM rate request with Cities :based on a test.year ending December 31, 2019; and C Ordinance No'. 20-3710 Page 1 of 3 387 WHEREAS, Cities coordinated its review of the Atmos West Texas 2020 RRM filing through its Executive Committee,. assisted by Cities' attorneys and consultants, to resolve issues identified in the: Company's RRM filing; .and WHEREAS, the Executive Committee; as well as: Cities' counsel and consultants, recommends that Cities approve an increase'in base rates for Atmos West Texas of $5.9 million with an Effective Date of. December 1, 2020; and WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with the recommendation of the Cities' Executive Committee, pare agreed to by -the Company,. and are just,. -reasonable, and in the public interest; and WHEREAS, the settlement agreement setsa..new benchmark for pensions and retiree medical -benefits (Exhibit-B.) and WHEREAS, the settlement. agreement establishes an amortization schedule for regulatory liability (Exhibit C); and WHEREAS, the RRM Tariff contemplates reimbursement of Cities' reasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT ORDAINED BY THE 'CITY COUNCIL :OF THE CITY OF PLAINVIEW, TEXAS: Section 1. That. the findings set forth in this Ordinance are hereby in all things approved. Section 2. That, without prejudice to. future litigation of any issue identified by Cities;- .the City Council finds that the settled amount of an increase in revenues of'$5.9 million for Cities represents a comprehensive settlement of gas utility rate issues affecting the rates, operations.,. and services offered by Atmos West Texas within. the municipal limits arising from Atmos West Texas' 2020 RRM filing,, is in the public interest, and is consistent with th.e City's authority. under Section 103.0.01 of the Texas. Utilities Code.. .Section 3. That the existing rates, for natural gas:service provided by Atmos West Texas are unreasonable. The new tariffs, attached hereto and..i.ncorporated herein as 'Exhibit A, are just and reasonable,. and are designed to allow Atmos West Texas to - recover annually an additional $5.9 million. in revenue from customers in Cities, over the amount.,allowed under currently approved. rates. Such tariffs are hereby adopted. Section 4. That the ratemaking treatment for pensions and retiree medical benefits in. Atmos West Texas' next RRM :filing shall be as set -forth on Exhibit B, attached hereto and 'incorporated -herein:. Section 5. That subject to any future settlement or decision regarding the balance of Excess Deferred Income Tax to*be refunded to ratepayers, the amortization of Ordinance No. 20-3710 Page 2 of 3 9610J regulatory liability shall be consistent with the schedule found in Exhibit C, attached hereto and incorporated herein. Section 6. That Atmos West Texas shall reimburse the reasonable ratemaking expenses -of the Cities in processing the Company's 2020 RRM:filing. Section 7. That to the extent any resolution or ordinance previously adopted by the .Council is inconsistent with this Ordinance, it is hereby repealed. Section 8. 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, Cha. pter. 551. Section 9. 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 10. 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 December -1, 2020. Section 1.1.- That a copy of this Ordinance shall be sent to Atmos West Texas, care of Philip Littlejohn, Vice President of Rates and Regulatory Affairs, West Texas Division, 6606 66th Street, Lubbock, Texas 79424, and Geoffrey G.ay, General Counsel to Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 8:1.6 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED on first reading this 13th day of October, 2020. , PASSED AND APPROVED on second reading this 27th day of October, 2020. ATTEST: r Belinda Hinojosa, City Secr to 2142/18/8110336 Ordinance No: 20-3710 Page 3 of 3 L • 1 Exhibit A to 2020 RRM Resolution or Ordinance Tariffs Effective December 1, 2020 1 390 ATTACHMENT 1 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. after12/01/2020 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. Charge Amount Customer Charge $17,50 Consumption Charge $ 0..27574 per Ccf The West Texas Division Qas-Cost Adjustment Rider applies to,this:schedule. The WestTexas.Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Diiv.ision Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM appliesto this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated.in accordance with the applicable rider¢sj. 1 391, AjtAbkMENT I I VVEsTTEXAS. 01VISION ATMOS tNEAQY CORPORATION FRATE�SCH I EDULE-: COMMERCIAL L GAS-SER . VI . CE APOLICA-8LEIOiL WEST TEXAS CITIES SERVICE AREA-- Inside City 0 Limit -(ICL) s ,EFFECTIVE DATE: Bills Rendered on !EthdAler 12A1/2020 Availability and :churches, for hObtihg, This schedul6::is: applicable to C&nmercibl customers, including. hospitals cooking, refrigeration,. . j - . :and other similar ty.piz.� uses. This schedule: it hot.ava liable for to premise§ -with an alternative supply of natural. -gas. Monthly Rate Amount mount Customer Charge 1-51,50, .. . . ..... ... FTO.16254,pqr-Qcf Consumption Charge The West Texas Division Gas Cost Adjustment Rider applies to this.schedulb. The West,TeRat Division Weather N _0110s to this schedule. prmalizatloh Adjustment Rider 60 The -West Texas Div'ision.Riddr TAX applies to this schedule. The West Texas bivision kider:F.Fabollet to this schedule. The West, Texas Division. Rider RkVapolies to thls: s.ched'Ule., Miscellaneous Cli 'es: Plus an amount for miscellaneout charges calculated in .8octbrdbrice with the arg applicable'rider(s), 392 ATTACHMENTS WEST'TtXAS, DIVISION ATMOS ENERGY -CORPORATION RATE SCHEDULE: INDUSTRIAL GAS SERVICE 7 - AL TEXAS INDUSTRIAL S APPLICABLEj'TO: WEST TEXAS CITIES SERVICE AREA.- Inside City Limits (ICL) EFFECTIVE DATE: bills Rendered on and after 12101/2020 B Availability This sthedble is.8pplicable to the sales to any industrial or commercial customer whose predominant use of natural gasis. bthertb6 n space heating, cooking, water heating or other similar type uses; Serviceunder this schedule is, aVailable.to eligible:-customerseligible:-customers following execution of a contract specifying the maximum. ho . &ly ldbd.. This schedul e* is-na available for service to premises with an -alternative supply:of natural gas. Monthly Rate Charge Amount, Customer Charge $ 527.25 0.710. Consumption Charge $0.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 DIVIslon Rider FF appliesito. this schedule The West Texas Division Rider :RRM applies to this schedule. Miscellaneous Charges: -Plus an amount for miscellaneous chdrg6s taltulated in accordance. with the applicable rider(s). i .i. . I ATT-AcRMENT 1 -393 WEST TEXAS. DIVISION ATMOS-ENERGY CORPORATION RATESC HE - DULE: PUBLIC AUTHORITY -GAS SERVICE APPLICABLE- TO: WEST TEXASCITIESSERVICE A.REA-- Inside City Limits. (ICL) EFFECTIVE DATE : Bills Rendered on and, after 12101/2020 Availability. This sch6ddle: 18,efopl [table to:gelniera I use by -Public Authority ty0&cu5t6m.ers, inddding:public khoblsi- for heating, cooking, refrigerati6n, water heating and other siMifar type uses. Thi!§. sc-hod'ujo is not,6Vailaible for sef.vice to premises with an b1ternbtiV&sblS0 em se jy.gf natural gas. Monthly Rate Charge Amount, :Customer Charge $144.75 -$ 01,4207 per Cd Consurniptibil. Charge The -West Texas Division Ga8Cost:Adjpstment Rider applies to this schedule'. The'Wpst Texas Division Weather NbrMalizbtibh Adjustment Rider applies to this schedule. The West -Texas DiV1slbn'Ridbr -TAX applies to'thib schedule. The WestTexbs Division Rider FF applies.to.thl.s schedule. -The West-. Texas Division Rider:RRM. applies to this schedule, Miscellaneous Chbrgbst PUs an amount for Miscellaneous charges calculated in accordance with the: 1 394 ATTACHMENTI WEST TEXAS, DIVISION ATMOS ENERGY CORPORATION RATE.SCH#ERANSPORTATION SERVICE APPLICABST TEXAS CITIES SERVICE :AREA — Inside City Limits (lCL) EFFECTIVEls Rendered on and after 12/01/202CI Anolicatiorn Applicable,. in the event that.Company has entered into�a Transportat.ion.Agreement, to a customer directly connected to the Atmos Energy Corp.,.WestTexas 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�Custome. facility With. an estimated annual usage greater than 1.00,000 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 521.25 per month Consumption Charge. $ 0:1Q070 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 Atrpos Energy Ccirporation's West Texas Division for transportation to the customer. Franchise Fee Adjustment: Plus an amountfor-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 ld 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. 1 395 �1_ -WEST-TEMS DIVISION - AT . MOS-EkROY CORPORATION IRATE SCHEDULE: TRANSPORTATION SERVICEANSPORT - - ­ I 1Mlis APPLICABLE I WEST -TEXAS CITIES SERVICE. AREA Inside dtyt 4 -_(ICL) 1 t0ttTiVE DATE: Bills .11-Rendered ona.nd-6ftolr 12101/9020 .z - - , I * - I lmbalanCO"FeOs All fbes charged "to custom-br under this Rate Schoddle-will be charged based on the quantities determined under th6applicople Transportation Agreementand will not ,be' -aggregated for any Customer With multiple Transportation; Agreements f&1he purposes, . 9. of such:fees: Wnt.hW4`6bolance F66 1 Gu§torrier;sKall-pay Com pbriy-a rnbnthlY*imbalance foe at the end of ekh-month as defined in the, applicable Transportation: porfation: Agreement, Curtailment Overnull Fdd, Upon notification by Company of an even -,of curtallment,or interruption- dtulstornee-s deliV6des, CUstopir, each excess. Of the stated-1,evel: of curtailment or interruption, pay Comoahy n ,Will. for e � h MMBtu deflV&ed 1 Report under 200%.6f the '16&-x" pric'e' tepotted-fdr ilhe:;month of deliVery-In Inside FERC's Gas M.!Hket thd-headitig "West Texas .al :keblkembrit Index, ek. In the -event the "I ridoe' pride rdported..for the. month of delivery, in Inside FERC'.s Gas- Market FWport underthe. heading, -"West :-`Te-x­a­siWaha` it no longer published, Company will'.calculatelhe appl icable ;fees utilizing a daily price inc[qx recognized a.s authoritative by the natural gas industry and-mostclosely -appr6x! mat n plidablb. irld6k. Agreement A-Vbnspo transportation, atloagreemont-is required. Service Hereunder and the rateswfbf. services provided are subject io.the orders of regulaiory bodies having juotdictibh°and to the COMP-ahy's Tariff for GasService: .-Sobbial, Whdifibrig 'hh'order to-rd�c-ei�v'b�.tr;�nspd�tatidn service: under this tariff, tUstOMbf must r-have-the .type_of meter, instrumentation, and communication required byCompany. Customer must pay Company all costs associated With the acopis'it10 " n and installation -of therequired equipment. 396 Exhibit B to 2020 RRM Resolution or Ordinance Schedule for:Pensions and Retiree Medical Benefits 1 CO ATMO$.EN.ERGYC6RP6RAtIOh(. WEST TEXAS ;CITIES ('!WTX;CITIES' !)'RATE'R-EVIEW MECHANISM? 015N.SiONS'4NORETIREE MEDICAL BENEFIT&FOR-APPROVAL TEST YEAKENDING DECEM B ER M 1261 .Line No: Proposed Benefits Benchmark- 1, Fiscal Year 2020 Willis Tbwers,-.Watson ReWrt: 2 Alocaiion Factor. Rropbsed !BeneffIs:Behdhmatk'Costs (ExclUding RemoVed Cost -Centers) 3 Allocated toWestXekas-(Ln 1,x Ln-2) 4 .0 ' &M and Capital Factor Proposed'.13efieks Benchmark Costd To,ALOprove (ExciudiRg-kemoved Cost. Centeri):(Ln 3x Ln 4) 7 8 Surhinary of Bppnsei Cbsts.tq Approve: 9 10. 0,81%. Expense 1766tot (,WP_F-2.3, Ln, 2) 11 1121 TotaILPension Account Plan 1.3` Toiafpost=EMployrnent Bene,fit, Pllan�. 14: Total S6j0p1eifiie6t41-,Ex"ecutive. Benefit Plan 15' Tota 1,(SurhLn12through*Ln14) P.OSt- . . Post- SUOPId�MentaI, Pension Empi9ynentPension Employment E�qcqtiye I I count Plan -BeriefitPlan AccoUnt Plan -Benefit,Plari Benefit Plan, Total $ -3,479,556 $ 3,716,12.5; -4 1,233,819 1,388'236 49,475, 8A86/o 8A8%" ....... 96.17%, ....... 96.17% .... 96.17P/o 295;036, $ 3,15:095 1 11 1,186608 1 It I , -1 335-051• $ I ; " 0'.580 10a00% 10M00% 100'.00 1/c, 100.600w. 100.00% 295,06 $ -315,095 $ 1,186,608. 1, 1i335,051 $ -47580 $ .%179,370 .79.56% 79.56% '50.80% 50.80% $ 234-.7116- 1* 602,774 $ 250,074 1 678:181 '100.00% $ -837,401' m: Exhibit C' to 2020 RRM Resolution or Ordinance Schedule for Amortization of Regulatory Liability 1 1 co ATMOS ENERGY CORPORATION:' WEST TEXAS CITIES'("WTX CITIES") RATE -REVIEW-MECHANISM AMORTIZATION- OF REGULATORY LIABILITY TEST YEAR, ENDING IlEtEMlkk 31'p, 1619: Be6irinhig,'df Year End . of Year Rdtd,B.ase ai�e 'Rate Base Cotrectdd Line Y6atZrided Adjustment 'Annual Adjustment Balance for No. Ded..31.--.--. Amount Arnoi-tiiation, Amount Dec:-119617 ;(b) W) 1 2017 $ 59,21.0,604 59,210604 , .2 '6912167,604 2;041,639- 56 ,562,665 3 '20,19 56t-562,665 2,40,6.51: 11,014 4, :2020 '54111:1,614 2,352,653 .51-,758,361 6 2021' 51 7,,161 58 1 7 1 . 2,352,6�,3 49'405-709 6 1022 49,405,709 -2,352, r 653 4-71053,066 7. 2023 47;6 ��IPPO 2,352,053 4 44,700, 03 87 2024- 44700,403 2i352,653 42,347,750 9 2025 4134.71750. 21352i653 -995,097 3% 10 2026 19995,097 2 552:1653 37,,642A45 1-1 2027 37:642,445 2-362,653 36,2891,,792 .12, 2028 35,28.9,792 2,352,,653 32`937,139 13. 2029: 32,93,7,'139 2,352,653. 30!584,4866, 14 2080 30,58.4,486 2,352,653 ;28; 231.8-33' 15 2031 28,231',03,* 2,352,653, "25:879,181 16� 2032. 25,879,181 .2,352,663 23i 1 5261528- 17 2033, .23,526i528: 2,'152,653, 21: 18 2034 -21,173i875: 2,352,653 18,921,222. 119 -20 ' 35 1.8.,821122-2: 2,352,'653. 16,46 8j570! 20 2036 1.6i468,570: 2i352,653: 21 2037 1.4'116,`0. 17 .2,352,653 I V63264 22 2038 11,763i264: 2,3.52,653 i9,410,611 23 2039 9,410,611 2,352,653 7.057 95-8- 24 2040 7;057" 58 -2,352;653 4,7105,406., 25 '204,1 4,705r i _306, 2;352 653 -2j352.651 26 2042 -2,352,653, 2,-352,6.53 97 28 Note; 29 1.. The annual. amortization '6f'Ei 26 yearrecovery period, istb sed'on 4he- Reverse `South Georgia M6thdd.