HomeMy WebLinkAboutOrdinance No. 18-014 tariff authorizing an annual Rate Review Mechanism (RRM) with Atmos EnergyORDINANCE NO. 18-014
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS, APPROVING A TARIFF
AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM
("RRM") AS A SUBSTITUTION FOR THE ANNUAL INTERIM
RATE ADJUSTMENT PROCESS DEFINED BY SECTION 104.301
OF THE TEXAS UTILITIES CODE, AND AS NEGOTIATED
BETWEEN ATMOS ENERGY CORP., MID-TEX DIVISION
("ATMOS MID-TEX" OR "COMPANY") AND THE STEERING
COMMITTEE OF CITIES SERVED BY ATMOS; REQUIRING THE
COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; ADOPTING A SAVINGS CLAUSE;
DETERMINING THAT THIS ORDINANCE WAS PASSED IN
ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN
MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE
COMPANY AND LEGAL COUNSEL FOR THE STEERING
COMMITTEE.
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 and similarly-situated Mid-Tex municipalities created the Steering
Committee of Cities Served by Atmos to efficiently address all rate and service matters associated
with delivery of natural gas; and
WHEREAS, the Steering Committee formed an Executive Committee to direct legal
counsel and to recommend certain specific actions to all aligned Mid-Tex Cities through resolution
or ordinance; and
WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering
Committee and Atmos Mid-Tex that settled the Company's interim rate filing under Section
104.301 of the Texas Utilities Code (a "GRIP" rate case), the Steering Committee and the
Company collaboratively developed a Rate Review Mechanism ("RRM") Tariff, ultimately
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authorized by the City in 2008, that allows for an expedited rate review process as a substitute for
the GRIP process; and
WHEREAS, the City has kept some form of a RRM Tariff in place until 2017 when it
adopted an ordinance approving an RRM Tariff filing settlement and specifically calling for
termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff following
the Railroad Commission's decision in a then-pending Atmos Texas Pipeline case (GUD No.
10580); and
WHEREAS, the Steering Committee's Executive Committee has recently approved a
settlement with the Company on the attached RRM Tariff that contains certain notable
improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate
of return on equity, acceptance of certain expense adjustments made by the Railroad Commission
in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM
Tariff application; and
WHEREAS, the RRM Tariff contemplates reimbursement of Cities' reasonable expenses
associated with RRM Tariff applications; and
WHEREAS, the Steering Committee's Executive Committee recommends that all Steering
Committee member cities adopt this ordinance and the attached RRM Tariff; and
WHEREAS, the attached RRM Tariff is just, reasonable and in the public interest,
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 attached RRM Tariff re-establishing a form of Rate Review
Mechanism is just and reasonable and in the public interest, and is hereby adopted.
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Section 3. That Atmos Mid-Tex shall reimburse the Cities' reasonable expenses associated
with adoption of this Ordinance and the attached RRM Tariff and in processing future RRM Tariff
applications filed pursuant to the attached tariff.
Section 4. That to the extent any resolution or ordinance previously adopted by the City
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 this Ordinance shall be interpreted
as if the offending section or clause never existed.
Section 7. That this Ordinance shall become effective from and after its passage.
Section 8. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, Mid-Tex
Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General
Counsel to Mid-Tex Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress
Avenue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 6th day of March, 2018.
Mayor
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ATTEST:
Christine Green
City Secretary
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