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Home My WebLink About08-3509 ord183 ORDINANCE NO. 08-3509 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS, ("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS WEST TEXAS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., WEST TEXAS DIVISION ("ATMOS WEST TEXAS" OR "THE COMPANY") REGARDING THE COMPANY'S RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; APPROVING ATMOS' PROOF OF REVENUES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND 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 "the Company"), and a regulatory authority with an interest in the rates and charges of Atmos West Texas; and WHEREAS, the City and similarly situated municipalities working together as the Steering Committee of Cities Served by Atmos West Texas ("Steering Committee") have been in continuing disagreement, dispute, and litigation with the Company over the application of Section 104.301 of the Texas Utilities Code and the interim rate adjustments ("GRIP rate increases") established by the Railroad Commission of Texas ("RRC" or the "Commission"); and WHEREAS, pursuant to the terms of the agreement settling the Company's most recent GRIP rate increase, the Steering Committee and the Company worked Ordinance No. 08-3509 Atmos West Texas RRM Ordinance Page 1 of 5 184 collaboratively to develop the Rate Review Mechanism ("RRM") tariff, ultimately authorized by the City earlier this year, that allows for an expedited rate review process controlled by Cities as a substitute to the current GRIP process; WHEREAS, on or after August 29, 2008, Atmos West Texas filed with the City its first application pursuant to the RRM tariff to increase natural gas rates by approximately $9.5 million, such increase to be effective in every municipality within its West Texas Division; and WHEREAS, the Steering Committee, assisted by its attorneys and consultants, coordinated the review of Atmos' RRM filing and designated the Executive Committee to resolve issues regarding the Company's RRM filing; and WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed; and WHEREAS, independent analysis by the Steering Committee's rate expert concluded that Atmos is able to justify a rate increase of up to $5.37 million; and WHEREAS, after negotiation and review, Atmos representatives and the Executive Committee were able to reach agreement that a $3.9 million increase in the Company's revenue requirement is reasonable, WHEREAS, the Executive Committee, as well as Steering Committee lawyers and consultants, recommend Steering Committee members approve the attached rate tariffs ("Attachment A" to this Ordinance) that will increase the Company's revenue requirement by $3.9 million consistent with the negotiated resolution; and WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues ("Attachment B" to this Ordinance) are consistent with the negotiated Ordinance No. 08-3509 Atmos West Texas RRM Ordinance Page 2 of 5 185 resolution reached by the Steering Committee and are just, reasonable, and in the public interest; and WHEREAS, it is the intention of the parties that Steering Committee members receive the benefit of any Settlement Agreement that Atmos enters into with other entities arising out of its RRM or any associated appeals of a decision entered by the Railroad Commission regarding the Company's request to increase rates. The Steering Committee acknowledges that the exercise of this right is conditioned upon the Steering Committee's acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto; and WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting rates are, as a whole, is in the public interest. 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 the City Council finds that the existing rates for natural gas service provided by Atmos West Texas are unreasonable and new tariffs and Atmos' proof of revenues, which are attached hereto and incorporated herein as Attachments A and B, are just and reasonable and are hereby adopted. Section 3. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Ordinance No. 08-3509 Atmos West Texas RRM Ordinance Page 3 of 5 186 Section 4. 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 5. 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 6. That if the City determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in Atmos' RRM filing would be more beneficial to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City. Exercise of this right is conditioned upon City's acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto. Section 7. That this Ordinance shall become effective from and after its passage with rates authorized by attached Tariffs to be effective for customer bills delivered on or after November 15, 2008. Section 8. That a copy of this Ordinance shall be sent to Atmos West Texas, care of C. W. "Bill" Guy, at Atmos Energy Corporation, 5110 80th Street, Lubbock, Texas 79424, and to Geoffrey Gay, Steering Committee Counsel, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. PASSED AND APPROVED on First Reading this 6th day of November, 2008. Ordinance No. 08-3509 Atmos West Texas RRM Ordinance Page 4 of 5 187 PASSED AND APPROVED on Second Reading this 11th day of November, 2008. ATTEST; City Secretary Ordinance No. 08-3509 Atmos West Texas RRM Ordinance Page 5 of 5 ~T A ATMOS ENERGY CORPORATION West Texas Distribution System -ICL Residential Gas Service Availability - fi89 i Tariff No: 13984 Rate Schedule: 6931 WT RESG ICL Page 18 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. Monthl~Rate Customer Charge: $ 7.37 Commodity Charge: All Consumption $ 0.15983 per Ccf True-up Charge:* All Consumption $ 0.03704 per Ccf Rate Adjustment Provision The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Odessa. The Odessa Gas Cost Adjustment Rider applies to this schedule for service inside city limits of Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. * The True-up Charge shown is for the period November I5, 2008 through July 31, 2009. EFFECTIVE: Bills rendered on and after November 15, 2008 Inside City Limits ISSUED BY: C.W. Guy, Vice President-Rates & Regulatory Affairs ATMOS ENERGY CORPORATION West Texas Distribution System -ICL Tariff No: 13985 Rate Schedule: 6931 WT COMG ICL Page 20 Commercial Gas Service Availability This schedule is applicable to Commercial type customers, including hospitals and churches, for heating, cooking, refrigeration, water heating and other similaz type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthl, +~Rate Customer Charge: $ 14.21 Commodity Charge: All Consumption $ 0.11572 per Ccf True-up Chazge: All Consumption $ 0.02784 per Ccf Rate Adjustment Provision The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Odessa. The Odessa Gas Cost Adjustment Rider applies to this schedule for service inside city limits of Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. + The True-up Charge shown is for the period November 15, 2008 through July 31, 2009, EFFECTIVE: Bills rendered on and after November 15, 2008 Inside City Limits ISSUED BY: C.W. Guy, Vice President-Rates & Regulatory Affairs 191' ATMOS ENERGY CORPORATION West Texas~Distribution System - ICL Availability Tariff No: 13986 Rate Schedule: 6931 WT PAG ICL Page 22 Public Authority Gas Service 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 Customer Charge: Commodity Charge: All Consumption True-up Charge:* All Consumption Rate Adiustment Provision $ 53.19 $ 0.08300 per Ccf $ O.OI 946 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Odessa. 'The Odessa Gas Cost Adjustment Rider applies to this schedule for service inside city limits of Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. • T'he True-up Charge shown is for the period November 15, 2008 through July 31, 2009. EFFEC'T'IVE: Bills rendered on and after November 15, 2008 Inside City Limits ISSUED BY: C.W. Guy, Vice President-Rates & Regulatory Affairs ATMOS ENERGY CORPORATION West Texas Distribution System -ICL Tariff No: 13987 Rate Schedule: 6931 WT STATE ICL Page 24 State Institution Gas Service Availability This schedule is applicable to gas service to state agencies (as provided in Texas Utilities Code, Section l 04.201) including, but not limited to, state college and universities, MHMR schools, agriculture, highway and public safety departments, prisons, and other facilities owned or operated by the State of Texas for the purpose of heating, cooking, refrigeration, water heating and other similaz type uses. Monthly Rate Customer Charge: $ 59.72 Commodity Charge: All Consumption $ 0.08051 per Ccf True-up Charge: All Consumption $ 0.01850 per Ccf Rate Adjustment Provision The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits Odessa. The Odessa Gas Cost Adjustment Rider applies to this schedule for service inside city limits of Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. * The True-up Charge shown is for the period November 15, 2008 through July 31, 2009. EFFECTIVE: Bills rendered on and after November 15, 2008 Inside City Limits ISSUED BY: C.W. Guy, Vice President-Rates & Regulatory Affairs 193 ATMOS ENERGY CORPORATION West Texas Distribution System -ICL Tariff No: 13962 Rate Schedule: 6931 WT INDG ICL Page 26 Industrial Gas Service 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 Customer Charge: $ 106.61 Commodity Charge: 0-1000 Ccf $ 0.09650 All over 1000 Ccf $ 0.07500 True-up Charge:* All Consumption Ccf $ 0.01995 Rate Adjustment Provision The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Odessa. The Odessa Gas Cost Adjustment Rider applies to this schedule for service inside city limits of Odessa. • The True-up Charge shown is for the period November 15, 2008 through July 31, 2009. EFFECTIVE: Bills rendered on and after November 15, 2008 Inside City Limits ISSUED BY: C.W. Guy, Vice President-Rates & Regulatory Affairs X194 ATTACHMENT B D N m m n 0 m o' o Q v Z (~ A ~ ~ ~ ~ m ~ o ° ° c ~ ~ ~ r u, ~ v ~ n m ~ ~ C D n _ ~ r ~ m ~ ~ g i ~ ~_ m o g ~~ m ~ ~ ~ ~ ~~ - ~ ~ rn w ~ N m rn w o m D <O W ~ n W pp ~ A V T ~ ~ z ~~ S o N ~ ~ C tnzm ~ ~ ~ '~ D ~ m w N N W N W J O J n c w N ~ V ~ N O N CASI V O_ T T Z C7 m "'~ m~0 ~ -~ N m o~ ~ Z_1 --I ~ ZZ~ m co 0 -., ~~