HomeMy WebLinkAbout24-3765 Ordinance357
ORDINANCE NO. 24-3765
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 2024 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 ATTACHMENT ESTABLISHING A
BENCHMARK FOR PENSIONS AND RETIREE MEDICAL
BENEFITS; APPROVING AN ATTACHMENT 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 ("GRIP") process
Ordinance No. 24-3765 Page 1 of 4
358
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
and
WHEREAS, the RRM tariff was adopted by the City in a rate ordinance in 2018;
WHEREAS, on about April 1, 2024 Atmos West Texas filed its 2024 RRM rate
request with Cities based on a test year ending December 31, 2023; and
WHEREAS, Cities coordinated its review of the Atmos West Texas 2024 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 $4.3
million with an Effective Date of October 1, 2024; and
WHEREAS, the attached tariffs (Attachment 1) implementing new rates are
consistent with the recommendation of the Cities' Executive Committee, are agreed to by
the Company, and are just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and
retiree medical benefits (Attachment 2) 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.
Ordinance No. 24-3765
Page 2 of 4
359
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 $4.3
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' 2024 RRM filing, is in the public interest, and is
consistent with the City's authority under Section 103.001 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 incorporated herein as
Attachment 1, are just and reasonable, and are designed to allow Atmos West Texas to
recover annually an additional $4.3 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 Attachment 2,
attached hereto and incorporated herein.
Section 5. That Atmos West Texas shall reimburse the reasonable ratemaking
expenses of the Cities in processing the Company's 2024 RRM filing.
Section 6. That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 7. 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 8. 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
Ordinance No. 24-3765 Page 3 of 4
360
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 9. 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 October 1, 2024.
Section 10. 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 Thomas Brocato, General
Counsel to Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED on first reading, this 27th day of August, 2024.
PASSED AND APPROVED on second reading, this loth day of September, 2024
I�
Charles tarne , Mayor
ATTEST: APPROVED AS TO FORM:
OJ4 "'el.
),--
Belinda Hinojosa, City laefetary City Attorney
1
Ordinance No. 24-3765
Page 4of4
Attachment 1
361
1
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 or after 10/01/2024
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
$ 19.69
Consumption Charge
$ 0.43304 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).
362
Attachment 1
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 or after 10/01/2024
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
Amount
Customer Charge
$ 67.39
Consumption Charge
$ 0.21728 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).
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at xNtx-div-plantprotectionratmosenergy.coin.
1
1
Attachment (
363
1
1
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 or after 10/01/2024
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 load. This schedule is not available for service to premises with an alternative supply of natural gas.
Monthly Rate
Charge
Amount
Customer Charge
$ 772.87
Consumption Charge
$ 0.12145 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).
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at wtx-div-plantprotection a atmosenergy com.
364
Attachment 1
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 or after 10/01/2024
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
$ 772.87 per month
Consumption Charge
$ 0.12145 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.
1
Attachment 1
365
�l
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 or after 10/01/2024
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.
366
Attachment 1
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:
Bills Rendered on or after 10/01/2024
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
$ 186.36
Consumption Charge
$ 0.19014 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).
J
F1
1
Attachme�
ATMOS ENERGY CORPORATION
WEST TEXAS CITIES ("WTX CITIES") RATE REVIEW MECHANISM
PENSIONS AND RETIREE MEDICAL BENEFITS FOR APPROVAL
TEST YEAR ENDING DECEMBER 31, 2023
Line
No. Description
(a)
1 Proposed Benefits Benchmark -
Fiscal Year 2024 Willis Towers Watson Report
2 Allocation Factor
3 Proposed Benefits Benchmark Costs (Excluding Removed Cost Centers)
Allocated to West Texas (Ln 1 x Ln 2)
4 O&M and Capital Factor
5 Proposed Benefits Benchmark Costs To Approve
(Excluding Removed Cost Centers) (Ln 3 x Ln 4)
6
7
8 Summary of Expense Costs to Approve:
9
10 O&M Expense Factor (WP_F-2.3, Ln 2)
11
12 Total Pension Account Plan
13 Total Post -Employment Benefit Plan
14 Total Supplemental Executive Benefit Plan
15 Total (Sum Ln 12 through Ln 14)
Shared Services
Post -
Pension Employment Pension
Account Plan Benefit Plan Account Plan
(b) (c) (d)
Post- Supplemental
Employment Executive
fit Plan Benefit Plan Total
(e) (f) (9)
$ 1,401,099 $
(1,145,631) $
468,105 $
(1,406,456) $
40,864
8.87%
8.87%
96 01 %
96.01 %
96.01 %
$ 124,299 $
(101,635) $
449,415 $
(1,350,301) $
39,232
100.00%
100.00%
100.00%
100.00%
100 00%
$ 124,299 $
(101,635) $
449,415 $
0,350,301) $
39,232 $ (838,990)
82.59% 82.59% 48.44% 48 44% 100.00%
$ 102,660 $ 217,683 $ 320,343
$ (83,941) $ (654,044) (737,985)
$ 39,232 39,232
$ 102,660 $ (83,941) $ 217,683 $ (654,044) $ 39,232 $ (378,410)