HomeMy WebLinkAboutOrdinance No. 13/031 Atmos negotiated settlement ORDINANCE NO. 13/031
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS, APPROVING A NEGOTIATED
RESOLUTION BETWEEN THE ATMOS CITIES STEERING
COMMITTEE AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2013 ANNUAL
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; REQUIRING THE
COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; REPEALING CONFLICTING
RESOLUTIONS OR ORDINANCES; 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; PROVIDING A MOST FAVORED
NATIONS CLAUSE; AND REQUIRING DELIVERY OF THIS
ORDINANCE TO THE COMPANY AND THE STEERING
COMMITTEE'S LEGAL COUNSEL.
WHEREAS, the City of University Park, Texas ("City") is a gas utility customer
of Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a
regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee
("ACSC"), a coalition of approximately 164 similarly situated cities served by Atmos
Mid-Tex that have joined together to facilitate the review of and response to natural gas
issues affecting rates charged in the Atmos Mid-Tex service area; and
WHEREAS, pursuant to the terms of the agreement settling the Company's 2007
Statement of Intent to increase rates, ACSC Cities and the Company worked
collaboratively to develop a Rate Review Mechanism ("RRM") tariff that allows for an
expedited rate review process controlled in a three-year experiment by ACSC Cities as a
4166162.1 1
substitute to the current Gas Reliability Infrastructure Program ("GRIP") process instituted
by the Legislature; and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with
Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM tariff;
and
WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM
tariff process for an additional five years; and
WHEREAS, the City passed an ordinance renewing the RRM tariff process for the
City for an additional five years; and
WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities'
reasonable expenses associated with RRM applications; and
WHEREAS, on or about July 15, 2013, the Company filed with the City its first
annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base
rates by $22.7 million;and
WHEREAS, ACSC coordinated its review of Atmos Mid-Tex's RRM filing
through its Executive Committee, assisted by ACSC attorneys and consultants, to resolve
issues identified by ACSC in the Company's RRM filing; and
WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel and
consultants, recommend that ACSC Cities approve the attached rate tariffs ("Attachment
A"to this Ordinance), which will increase the Company's revenues by$16.6 million; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public
interest;
4166162.1 2
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF UNIVERSITY PARK, 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 Mid-Tex are unreasonable and new tariffs which are attached hereto
and incorporated herein as Attachment A, are just and reasonable and are hereby adopted.
Section 3. That Atmos Mid-Tex shall reimburse the reasonable ratemaking
expenses of the ACSC Cities in processing the Company's RRM application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. 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 6. 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 7. That if ACSC 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' 2013 RRM filing would be more
beneficial to the ACSC Cities than the terms of the attached tariffs, then the more
favorable rates, revenues, terms and conditions, or benefits shall additionally and
automatically accrue to the ACSC Cities, including the City, without the need for City to
4166162.1 3
take any further action. If this automatic adjustment occurs, Atmos Mid-Tex shall void
promptly thereafter file with the City an amended tariff documenting the adjustment to
rates.
Section 8. That 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
November 1, 2013.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of
Chris Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General
Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767-1725.
PASSED AND APPROVED this 15th day of October
,qed
2013.
APPROVED:
W. RICHARD DAVIS, MAYOR
ATTEST:
/
LI , SP CTOR, CITY �S/ RETARY
APP' 0 VE 1 AS TO FOR :
, A,:
ROBERT L. DILLARD III,CITY ATTORNEY
(62827)
4166162.1 4
take any further action. If this automatic adjustment occurs, Atmos Mid-Tex shall
promptly thereafter file with the City an amended tariff documenting the adjustment to
rates.
Section 8. That 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
November 1, 2013.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of
Chris Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General
Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767-1725.
PASSED AND APPROVED this 15th day of October
2013.
APPROVED:
W. RICHARD DAVIS, MAYOR
ATTEST:
LIZ SPECTOR, CITY SECRETARY
APP VE AS O FO .
L.
ROBERT L. DILLARD III,CITY ATTORNEY
(62827)
4166162.1 4
Attachment A
Atmos Mid-Tex Tariffs
Effective November 1 , 2013
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R—RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11101/2013
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one 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 monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 17.70 per month
Rider CEE Surcharge $ 0.02 per month'
Total Customer Charge $ 17.72 per month
Commodity Charge—All Ccf $0.05831 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a) and Part(b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
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).
Agreement
An Agreement for Gas Service may be 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.
1 Reference Rider CEE-Conservation And Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2013.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C—COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
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 monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 35.75 per month
Rider CEE Surcharge $ 0.10 per month'
Total Customer Charge $35.85 per month
Commodity Charge—All Ccf $0.06893 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a) and Part(b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
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).
Agreement
An Agreement for Gas Service may be 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.
1 Reference Rider CEE-Conservation And Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2013.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Application
Applicable to Industrial Customers with a maximum daily usage(MDU)of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
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 monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $620.00 per month
First 0 MMBtu to 1,500 MMBtu $0.2565 per MMBtu
Next 3,500 MMBtu $ 0.1879 per MMBtu
All MMBtu over 5,000 MMBtu $0.0403 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a) and Part(b), respectively, of Rider GCR.
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).
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 midpoint price for the Katy point listed in Plaits Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Agreement
An Agreement for Gas Service may be 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 service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) 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.
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 MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $620.00 per month
First 0 MMBtu to 1,500 MMBtu $0.2565 per MMBtu
Next 3,500 MMBtu $0.1879 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0403 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part(b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
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).
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 the greater of(i)$0.10 per MMBtu, or(ii) 150%of the difference per MMBtu
between the highest and lowest"midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10%of Customer's receipt quantities for the month.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/0112013
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 midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" 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 service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues 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 and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas,Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA,= WNAFI x qg
Where qI)is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2013
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 9.97 0.1318 96.50 0.5659
Austin 11.05 0.1262 189.59 0.7195
Dallas 13.13 0.1832 171.84 0.8797
Waco 9.78 0.1262 117.60 0.5774
Wichita 10.99 0.1297 107.70 0.5041
Falls
Weather Normalization Adjustment(WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and a Excel version of the WNA Report with the Railroad Commission of
Texas'Gas Services Division, addressed to the Director of that Division.