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Home My WebLink About04-3417 ordORDINANCE NO. 04-3417 AN ORDINANCE OF THE CITY OF PLAINVIEW, TEXAS FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT ATMOS ENERGY COMPANY'S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING dUST AND REASONABLE RATES; ADOPTING GENERAL SERVICE RATES INCLUDING RATE ADJUSTMENT PROVISIONS TO BE CHARGED FOR SALES AND TRANSPORTATION OF NATURAL GAS TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS; DISALLOWING AN ADJUSTMENT FOR UNCOLLECTIBLES; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PRESERVING REGULATORY RIGHTS OF THE CITY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on September 11, 2003, Atmos Energy Company ("Atmos" or "Company") filed with the City of Plainview ("City") a statement of Intent to Change Gas Rates charged to consumers within this municipality and a West Texas Rate Study ("Application"); WHEREAS, the City, acting as a regulatory authority, suspended the effective date of Atmos' Application to increase rates in the City in order to study the reasonableness of the Application in conjunction with similarly situated West Texas cities served by Atmos; WHEREAS, the City passed a resolution denying the Atmos Application subject to extensions by the Company of its effective date or a settlement reached prior to loss of municipal jurisdiction; WHEREAS, Atmos extended its effective date on several occasions and a Steering Committee acting on the City's behalf reached a rate agreement prior to expiration of municipal jurisdiction; WHEREAS, the City, in a reasonably noticed public hearing, considered the Company's Application, a report from the City's consultants who were retained to evaluate the merits of the Company's Application, and the settlement agreement negotiated with Atmos by Cities' Steering Committee; and WHEREAS, the City has determined that the Company's rates within the City should be changed and that the Company's Application should be granted in part and denied in part; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS: SECTION 1. That the existing rates and charges of Atmos are hereby found, after reasonable notice and hearing, to be unreasonable and shall be changed as Ordinance No. 04-3417 Atmos Rate Case Page 1 of 4 192 hereinafter ordered. The changed rates resulting from this Ordinance are hereby determined to be just, reasonable, and nondiscriminatory rates to be observed and in force within the City. SECTION 2. That it is hereby ordered that the Company's rates in the City be set on the basis of a $3,199,885 (or 2.93%) increase in overall system average revenues for the West Texas Distribution System. SECTION 3. That the Company has agreed to modify the rates proposed in its Statement of Intent and the modified rates are reflected in the revised tariffs for gas service (attached hereto as Exhibits A & B). The maximum general service rates for sales and transportation of natural gas rendered to residential, commercial, public authority, and industrial consumers within the municipal limits of Plainview, Texas by Atmos are hereby fixed and approved as set forth in Exhibits A & B. The rates reflected in the attached tariffs are found to be reasonable. Nothing contained herein shall limit the right of industrial and transportation customers with competitive options to negotiate rates with the Company that differ from approved tariffs. Nothing contained herein shall be construed as approval of any provision of Atmos' Application unless such provision is specifically approved herein, SECTION 4. That the Weather Normalization Adjustment Rider, as requested by Atmos and shown in Exhibit B, is found to be reasonable and is hereby approved. SECTION 5, That the Gas Cost Adjustment Rider filed as part of the,Application has been withdrawn.by the COmpany. Instead, the existing Gas Cost Adjustment Rider will remain in place and effect as previously approved by the Railroad Commission of Texas. The existing Gas Cost Adjustment Rider is found, to be reasonable and is hereby approved as partof Atmos' revised tariffs. SECTION 6. For purposes of a future GRIP filing under Texas Utility Code §104.301 (Vernon Supp. 2004), and only for such purposes, it is agreed that Atmos may benchmark its rate base for i,ts West Texas Distribution System at $87,479,804; its rate of return on capital of in the filed declaratio a future should be antiC )ated. ~%~ resulting in a corresponding weighted average cost of preciation rates and revenue-related tax factors as set forth Nothing contained herein shall be regarded as a ' filing is r~asonable or that future regulatory approval SECTION 7. That Cities' rate case expenses are found to be reasonable and shall be reimbursed promptly by the Company. The Company's rate case expenses shall not exceed $100,000. The Company is authorized to recover the rate case expenses reimbursed to Cities and the Company's rate case expenses through a consumption-based 12-month surcharge based upon total system sales. The Company shall liation to the City by September 30, 2005, to prove that the Compan~ over-recoVered rate CaSe expenses. Ordinance No. 04-3417 Atmos Rate Case Page 2 of 4 1 9::3 SECTION 8. The aforesaid rate scheduleS and riders herein approved shall be effective for bills rendered on or after May 1, 2004, irrespective of the date this Ordinance is finally approved. SECTION 9. The rates set forth in this Ordinance may be changed and amended by either the City or Company in any other manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the Company's Rules and Regulations currently on file with the City. SECTION 10. Unless otherwise noted herein, other than Atmos (a named party), no person or entity has been admitted as a party to this rate proceeding. SECTION 11. It is hereby found and determined that said meeting at which this ordinance was passed was open to the public, as required by Texas law, and that proper advance public notice of the time, place and purpose of said meeting was given. SECTION 12. This Ordinance shall be served on the Company by U.S. Mail to the Company's authorized representative, C.W. "Bill" Guy, Vice President of Rates and Regulatory Affairs, Atmos Energy Company, P.O. Box 1121, Lubbock, Texas, 79408. SECTION 13. Nothing contained in this Ordinance shall be construed now or hereafter as limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and charges of Atmos Energy Company. SECTION 14. All ordinances, resolutions, or pads thereof, in conflict with this Ordinance are repealed to the extent of such conflict. SECTION 15. Should any section, subsection, or any portion hereof be deemed invalid for any reason, such holding shall not render or invalidate any other section, sub-section, sentence, provision, clause, phrase, or word severable therefrom and the same shall be deemed severable for this purpose. SECTION 16. Provisions of this ordinance are cumulative and nothing herein shall prevent, alter, or diminish the applicability or enforcement of other ordinances restricting, regulating or governing the subject matter herein. PASSED AND APPROVED on first reading this 13th day of April, 2004. PASSED AND APPROVED on second reading this 27th day of April, 2004. .... ret~" Ordinance No, 04-3417 Atmos Rate Case Page 3 of 4 G~~Jham, ~ Manager APPROVED AS TO FORM: Wally Hatch, City Attorney Ordinance No. 04-3417 Atmos Rate Case Page 4 of 4 Exhibit A Page 1 of ~ '1 9 ~5 Atmos Energy Company West Texas Distribution System RESIDENTIAL GAS SERVICE 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 Customer Charge: $ 8.50 Commodity Charge: All Consumption $ 0.11035 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Midland and Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Atmos Energy Company West Texas Distribution System COMMERCIAL GAS SERVICE AVAILABILITY This schedule is applicable to Commercial type 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 alternative supply of natural gas. MONTHLY RATE Customer Charge: $ 14.00 Commodity Charge: All Consumption $ 0.0970 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Midland and Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs Atmos Energy Company West Texas Distribution System SMALL INDUSTIAL GAS SERVICE AVAILABILITY This schedule is applicable to the sales of any industrial or commercial customer whose predominat 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: $ 55.00 Commodity Charge: Consumption: 0-100 ccf $ 0.0965 per Ccf All over 100 ccf $ 0.0750 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Midland and Odessa. EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: CoW. Guy, Vice President - Rates & Regulatory Affairs Page 4 of 5 Atmos Energy Company West Texas Distribution System PUBLIC AUTHORITY GAS SERVICE 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 altemative supply of natural gas. MONTHLY RATE Customer Charge: $ 42.00 Commodity Charge: All Consumption $ 0.083 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Midland and Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates &:Regulatory Affairs Atmos Energy Company West Texas Distribution System STATE INTITUTION GAS SERVICE AVAILABILITY This schedule is applicable to gas service to state agencies (as provided in Texas Utilities Code, Section 104.201) 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 similar type uses. MONTHLY RATE Customer Charge: Commodity Charge: $ 40.74 All Consumption $ 0.08051 per Ccf The West Texas System Gas Cost Adjustment Rider applies to this schedule except for service inside city limits of Midland and Odessa. The West Texas System Weather Normalization Adjustment Rider applies to this schedule. EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs 2,.0 0 Exhibit B Page 1 of 3 Billing Rate Code Tariff Schedule ID Atmos Energy Company West Texas Distribution System WEATHER NORMALIZATION ADJUSTMENT (WNA) RIDER PROVISIONS FOR ADJUSTMENT The base rate per Ccf (100,000 Btu) for gas service set forth in any Rate Schedules utilized in the cities of The West Texas Service Area or its environs for determining normalized winter period revennes shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential, commercial and pnblie authority bills based on meters read during the revenne months of October through May. N C W T a r f f EFFECTIVE: Bills rendered on and after.May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs ,Exhibit B Page 2 o~ 3 Atmos Energy Company West Texas Distribution System l~illi~g Rgte Code Tariff Schedule ID WEATHER NORMALIZATION ADJUSTMENT (WNA) RIDER (Continued) Computation of Weather Normalization Adiustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: Where (HSF ~ (NDD-ADD) ) W~AF i = 1~ i (BL i + (HSF i x ADD) ) any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one biIHng classification WNAF i :: Weather Normalization Adjustment Factor for the i schedule or classification expressed in cents per Ccf R i = base rote of temperature sensitive sales for the i m schedule or classification utilized heat sensitive factor for the i m by the average bill count in that class billing cycle normal heating degree days billing cycle actual heating degree days base load sales for the i i tn average bill count in that class HSF NDD = ADD = ]~L i = The Weather Normalization Adjustment for the j m customer in i WNA i = WNAF i x q ii m rate schedule or classification divided schedule or classification divided by the rate schedule is computed as: Where q ii is the relevant sales quantity for the j '" customer in i * rate schedule 2 0,1 EFFECTIVE: Bills rendered on and after May 1, 2004 inside city limits. ISSUED BY: C.W. Guy, Vice President - Rates & Regulatory Affairs 202 Exhibit B Page 3 of 3 Atmos Energy Company West Texas Distribution System Billing Rate Code Tariff Schedule ID WEATHER NORMALIZATION ADJUSTMENT Filings with Regulatory Agencies The Company will file (a) a copy of each computation of the Weather Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather Normalization Adjustment, and (c) a schedule showing the factors of values used in calculating such Weather Normalization Adjustment EFFECTIVE: ISSUED BY: Bills rendered on and after May 1, 2004 inside city limits. C.W. Guy, Vice President - Rates & Regulatory Affairs