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ORDINANCE NO. 18-3679
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLAINVIEW, TEXAS, APPROVING A NEGOTIATED SETTLEMENT
BETWEEN THE STEERING COMMITTEE OF CITIES SERVED BY
ATMOS ("CITIES") AND ATMOS ENERGY CORP., WEST TEXAS
DIVISION REGARDING THE COMPANY'S 2018 RATE REVIEW
MECHANISM FILINGS; 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 AN ATTACHED 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 the Steering Committee of Cities served by
Atmos ("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 18-3679 Page 1 of 5
481
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 earlier
this year; and
WHEREAS, on about April 1, 2018, Atmos West Texas filed its 2018 RRM rate
request with Cities based on a test year ending December 31, 2017; and
WHEREAS, Cities coordinated its review of the Atmos West Texas 2018 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
$6.1 million on a system -wide basis ($2.6 million of which is applicable to Cities'
members); and
WHEREAS, the attached tariffs (Exhibit A) 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 Exhibit A rate tariffs incorporate the federal income tax rates that
became effective January 1, 2018; and
WHEREAS, the settlement agreement sets a 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
Ordinance 18-3679 Page 2 of 5
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 the City Council finds that the settled amount of an increase in
revenues of $6.1 million on a system -wide basis 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' 2018
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 Exhibit A, are just and reasonable, and are designed to allow Atmos West Texas to
recover annually an additional $6.1 million in revenue on a system -wide basis 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 amortization of regulatory liability shall be consistent with the
schedule found in Exhibit C, attached hereto and incorporated herein.
Ordinance 18-3679 Page 3 of 5
483
Section 6. That Atmos West Texas shall reimburse the reasonable ratemaking
expenses of the Cities in processing the Company's 2018 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, Chapter 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 October 1,
2018.
Section 11. 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 Gay, General Counsel
to Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
Ordinance 18-3679 Page 4 of 5
484
PASSED AND APPROVED on first reading this 11th day of September, 2018.
PASSED AND APPROVED on second reading this 25th day of September, 2018.
ATTEST:
City Secretary
APPROVED AS TO FORM:
Ma Wade, City Attorney
2142/15/7718085
Ordinance 18-3679 Page 5 of 5
485
EXHIBIT A
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 after 10/01/2018
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
$ 16.10
Consumption Charge
$ 0.19875 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).
486
EXHIBIT A
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 and after 10/01/2018
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
$ 43.25
Consumption Charge
$ 0.13423 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).
487
EXHIBIT A
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 and after 10/01/2018
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
$ 409.00
Consumption Charge
$ 0.08944 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).
488
EXHIBIT A
WEST TEXAS DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
PUBLIC AUTHORITY GAS SERVICE
APPUCABLE TO:
WEST TEXAS CITIES SERVICE AREA — inside City Limits (ICL)
EFFECTIVE DATE:
Bills Rendered on and after 10/01/2018
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
Charge
Amount
Customer Charge
$ 122.25
Consumption Charge
$ 0.11661 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).
489
EXHIBIT 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 10/01/2018
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.
Tvoe 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 fumished.
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
$ 409.00 per month
Consumption Charge
$ 0.08944 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.
490
EXHIBIT 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 10/01/2018
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.
491
Exhibit B
Pensions and Retiree Medical Benefits
492
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