O-3559-3-18ORDINANCE NO. 3559-3-18
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE
REVIEW MECHANISM AS A SUBSTITUTION FOR THE ANNUAL INTERIM RATE
ADJUSTMENT PROCESS DEFINED BY SECTION 104301 OF THE TEXAS
UTILITIES CODE, AND AS NEGOTIATED BETWEEN ATMOS ENERGY CORP.,
MH)-TEX DIVISION 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 Allen, 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; and,
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of similarly -
situated cities served by Atmos Mid -Tex ("ACSC Cities") 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, ACSC 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 ACSC and Atmos Mid -Tex that
settled the Company's interim rate tiling under Section 104.301 of the Texas Utilities Code (a "GRIP" rate
case), ACSC and the Company collaboratively developed a Rate Review Mechanism ("RRM") Tariff,
ultimately 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 ACSC 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 ACSC's reasonable expenses associated with
RRM applications; and,
' WHEREAS, the ACSC Executive Committee recommends that all ACSC Cities adopt this ordinance and the
attached RRM Tariff; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
' SECTION 1. The findings set forth in this Ordinance are hereby in all things approved.
SECTION 2. 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.
SECTION 3. 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. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with
this Ordinance, it is hereby repealed.
SECTION 5. 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. 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. This Ordinance shall become effective from and after its passage.
SECTION 8. 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.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY TEXAS, ON THIS 13- DAY OF MARCH 2018.
APPROVED:
Stmhq Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
1
Peter G. Smith, CITVATTORNEY Shelley B. Georg &, TRMC, CITY SECRJETARY
Ordinance No. 3559-3-18, Page 2