HomeMy WebLinkAbout17-3652 ordORDINANCE NO. 17-3652
AN ORDINANCE 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 2016 RATE REVIEW MECHANISM ("RRM") 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; ESTABLISHING A PROCESS FOR
RENEGOTIATING THE RRM TARIFF IN 2017; 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 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 2016 and beyond; and
WHEREAS, the RRM tariff contemplates reimbursement of Cities' reasonable
expenses associated with RRM applications; and
WHEREAS, on or about December 1, 2016, the Company filed with the City its
second annual RRM filing under the renewed RRM tariff, requesting to increase natural
gas base rates system -wide by $12.17 million, and for WTX Cities by $5.15 million; and
Ord. 17- 3652
Atmos Energy Page 1
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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 $1.72 million in adjustments; and
WHEREAS, the Company reached agreement with WTX Cities to adjust its $5.15
million request by $.95 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 Ordinance), which will increase the Company's revenues by $4.2 million; and
WHEREAS, additional terms of the settlement agreement with the Company are:
(1) WTX Cities and the Company will confer and renegotiate the terms of the RRM Tariff
during the summer months of 2017, particularly after the Railroad Commission of Texas
(the "Commission") has decided the rate case pending for Atmos Texas Pipeline (GUD
No. 10580), currently scheduled for a Final Order by the Commission in June 2017; (2)
this 2016 RRM tariff filing shall be the last RRM filing by the Company under the existing
RRM Tariff; and (3) if a replacement RRM tariff is not finally negotiated and implemented
by September 2017, WTX Cities reserve the right to adopt Show Cause Resolutions
compelling the Company to file a rate case; 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 ORDAINEE 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 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 WTX Cities and the Company will confer and renegotiate the terms
of the RRM Tariff during the summer months of 2017, particularly after the Railroad
Commission of Texas (the "Commission") has decided the rate case pending for Atmos
Texas Pipeline (GUD No. 10580), currently scheduled for a Final Order by the
Commission in June 2017. The 2016 RRM tariff filing that is the subject of this Ordinance
shall be the last RRM filing by the Company under the existing RRM Tariff. If a
replacement RRM tariff is not finally negotiated by the Company and WTX Cities, and
implemented by the Company by September 2017, WTX Cities reserve the right to adopt
Show Cause Resolutions compelling the Company to file a rate case
Ord. 17- 3652
Atmos Energy Page 2
Section 4. That Atmos West Texas shall reimburse the reasonable ratemaking
expenses of the WTX Cities in processing the Company's RRM application.
Section 5. That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 6. 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 7. 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 8. 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 March 15, 2017.
Section 9. That a copy of this Ordinance 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 on first reading this 14th day of March, 2017.
PASSED AND APPROVED on second reading this 28th day of March, 2017.
ATTEST:
Belinda Hinojosa, City Secr
c4'1D1-441r#°
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-64'unlaP, Mayor
Y
Ord. 17- 3652 Atmos Energy
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192
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
ATTACHMENT A
RRC TARIFF NO: 26746
RATE SCHEDULE:
RESIDENTIAL GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03/15/2017
PAGE: 17
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
$ 16.50
Consumption Charge
$ 0.19570 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).
193
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
ATTACHMENT A
RRC TARIFF NO: 26747
RATE SCHEDULE:
COMMERCIAL GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03/15/2017
PAGE: 18
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
$ 44.00
Consumption Charge
$ 0.13458 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).
194
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
ATTACHMENT A
RRC TARIFF NO: 26748
RATE SCHEDULE:
INDUSTRIAL GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03/15/2017
PAGE: 19
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
$ 407.00
Consumption Charge
$ 0.09207 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).
195
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
ATTACHMENT A
RRC TARIFF NO: 26749
RATE SCHEDULE:
PUBLIC AUTHORITY GAS SERVICE
APPLICABLE TO:
WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 03/15/2017
PAGE: 20
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
$ 124.50
Consumption Charge
$ 0.11774 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).
196
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 03/15/2017
PAGE: 21
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
$ 407.00 per month
Consumption Charge
$ 0.09207 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
m unicipality.
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.
197
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 03/15/2017
PAGE: 22
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.
198
ATTACHMENT A