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HomeMy WebLinkAboutO-3472-5-17ORDINANCE NO. 3472-5-17 ' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORPORATION, MID-TEX DIVISION REGARDING THE COMPANY'S 2017 RATE REVIEW MECHANISM 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 SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE 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 ACSC'S LEGAL COUNSEL. WHEREAS, the City of Allen, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ("Atmos Mid -Te)" 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 and the Company worked collaboratively to develop a new Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature, and that will establish rates for the ACSC Cities based on the system -wide cost of serving the Atmos Mid -Tex Division; and, WHEREAS, on March 1, 2017, Armes Mid -Tex filed its 2017 RRM rate request with ACSC Cities; and, WHEREAS, ACSC coordinated its review of the Armes Mid -Tex RRM filing through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues identified in the Company's RRM filing; and, WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $48 million on a system -wide basis; and, WHEREAS, the attached tariffs implementing new rates me consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and arejust, reasonable, and in the public interest; and, WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses associated with RRM applications. 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 City Council finds that the settled amount of an increase in revenues of $48 million on a system -wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, ' and services offered by Armes Mid -Tex within the municipal limits arising from Atmos Mid-Tex's 2017 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. The existing rates for natural gas service provided by Atmos Mid -Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment A, arejust and reasonable, and are designed to allow Atmos Mid -Tex to recover an additional $48 mullion in revenue over the amount allowed under currently approved rates, as shown in the Proof of Revenues attached hereto and incorporated herein as Attachment B; such tariffs are hereby adopted. SECTION 4. The ratemalang treatment for pensions and other post -employment benefits in Atmos' next REM filing shall be as set forth on Attachment C, attached hereto and incorporated herein. SECTION 6. Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company's 2017 RIM filing. SECTION 7. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. SECTION 8. 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. 1 1 SECTION 9. If any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, suchjudgment 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. 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 June 1, 2017. SECTION 11. A copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris Felan, Vice President of Rates and Regulatory Affaus Mid -Tex Division, Atmos Energy Corporation, 5420 LIB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, 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 23RD DAY OF MAY 2017. APPROVED AS TO FORM: (�4AA Peter G. Smith, CTIT ATTORNEY APPROVED: IL -0-4Q? - Stephen Terrell, MAYOR ATTEST: Shelley B. Geore, TRM , CITY RETARY Ordinance No. 3472-517, Page 2 MID-TEX DIVISION ATMOS ENERGY CORPORATION Attachment A RRC Tariff No: RATE SCHEDULE: R— RESIDENTIAL SALES Customer Charge per Bill ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 061012017 PAGE: 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 $ 19.60 per month Rider CEE Surcharge $ 0.02 per month' Total Customer Charge $ 19.62 per month Commodity Charge — All Ccf $0.14427 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. 'Reference Rider CEE - Conservation and Energy Effidency as approved in GUD 10170. Surcharge billing effective July 1, 2016 I F MID-TEX DIVISION ATMOS ENERGY CORPORATION Attachment A RRC Tariff No: RATE SCHEDULE: C—COMMERCIALSALES Customer Charge per Bill ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 0610112017 PAGE: 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 Customers 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 $ 44.70 per month Rider CEE Surcharge $ 0.08 per month' Total Customer Charge $ 44.78 per month Commodity Charge —All Ccf $ 0.09279 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, 2016 1 Attachment A MID-TEX DIVISION _ RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I —INDUS RIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF First 0 MMBtu to 1,500 MMBtu DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 06/01/2017 PAGE: 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 $ 799.75 per month First 0 MMBtu to 1,500 MMBtu $ 0.3374 per MMBtu Next 3,500 MMBtu $ 0.2470 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0530 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 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. MID-TEX DIVISION ATMOS ENERGY CORPORATION Attachment A RRC Tariff No: RATE SCHEDULE: I — INDUSTRIAL SALES ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 0610112017 PAGE: 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 jurisdic0on 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. I 1 1 Attachment A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION Customer Charge per Meter ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 0610112017 PAGE: Application Applicable, in the event that Company has entered into n 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 Customers 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 Customers bill will be calculated by adding the following Customer and MMStu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 799.75 per month First 0 MMBtu to 1,500 MMBtu $ 0.3374 per MMBtu Next 3,500 MMBtu $ 0.2470 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0530 per MMBtu Upstream Transportation Cost Recovery: Plus anamount 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) 1109/6 of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Plaits Gas Daily in the table entitled "Daily Price Survey" during such month, for the MMBtu of Customers 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 Attachment A RRC Tariff No: 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 0 610 1/2 01 7 PAGE: 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. Attachment A 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 11/0112017 PAGE: Provisions for Adiustment The Commodity Charge per Cd (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, Waw, 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: WNAFi = Ri ' Where i = WNAFi = (HSFi x (NDD-ADD) ) (BLi + (HSFi x ADD) ) any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification 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 qq Where qq is the relevant sales quantity for the jth customer in ith rate schedule. 1 Attachment A MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA- WEATHER NORMALIZATION ADJUSTMENT ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 11/01/2017 PAGE: Base Use/Heat Use Factors ' Weather Normalization Adiustment (WNA) Report — On or before June 1 of each year, the Company posts on its website at atmosenergy.com/mtx-ma, 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 an Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division I� Residential Commercial Base use Heat use Base use Heat use Weather Station Ccf Ccf/HDD Cof Ccf/HDD Abilene 9.79 0.1347 93.16 0.6060 Austin 10.37 0.1483 190.68 0.9069 Dallas 13.36 0.2089 180.35 1.0191 Waco 9.64 0.1348 124.37 0.5791 Wichita 11.20 0.1412 107.96 0.5571 Falls ' Weather Normalization Adiustment (WNA) Report — On or before June 1 of each year, the Company posts on its website at atmosenergy.com/mtx-ma, 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 an Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division I� Attachment B File Dare March 1,2017 ATMOS ENERGY CORP.,MI0.TEX DIVISION PROPOSED TARIFF STRUCTURE(BEFORE RATE CASE EXPENSE RECOVERY) TEST YEAR ENDING DECEMBER 31,2016 (a) (h) (0 OD le) 10 (9) (h) 0) 0) (3) 1POCONO Change In Reis $ 40,060,000 StlfelmeA 2 PeVeVW Change In Rates monere Revenue Related Teves $ 44.800.457 Io 1 ENING ey Giom An WP_F51 3 4 5 6 Revenue Regmremen6 MI..— ] ReeldenNy S 338 431.486 ]]95% Per GOD 101]O Final Cri 8CAoMA,nal 84,223,622 1940% Per GOD 10170 Final pdx 91Mus red Tranyrbere 11490.316 26596 PerGU0101]O Final CFd. tO NA Reeervc Prrulremeras GUD No.10170 $ 434.145.424 11 12 13 14 15 16 Who Prtpxli nod lMrene all tlasses be ReNderwlaM a 40%residmdN fia char,inxase In accmdance who FORM tanX' 1] PropaN Charge In Proposed 18 C.. Prospective ReverARs Proposed Charge Revenues Rales Pmloneed Pwver. 19 20 ROMels lBaze Cheri $ 1908 $ D7 S USES 407 Re icental Bess Goal $ 052 S 9,385,859 $ 190 $ 353.851,097 21 Residential Cwrump4on Chane $ 0.11378 S 002502 20,941,111 ResIMMeI Cw —O,n Charge $ 003809 25.6NI 4 $ 011427 120.821]18 22 Commercial Base Charge $ 4170 $ 2% 4.315814 Conneedal Bae Clave $ 380 4,4098]8 $ H]0 65.]0],365 23 Commercial Corcunpoon Chale $ 008494 $ 000]8] 4.345614 Crnmerial Comumphan Charge $ DOOMS 4,280,326 $ 00927 501585093 2418T ease Charge $ ]3]00 $ 6 ]0 592.856 IST Baa Greyer $ 02)5 593.384 $ 799 75 ].582.42] 2518TCmaunpSm Chargenerl MMBTU $ 03096 S 0 ]0 279,522 18T Coreon Channel Tier I MMBTU $ 002]8 2]9)26 $ 03374 3,384,949 2618T Conslsnpdon Cher,Ter 2 MMBTU $ 0226 $ 0 3 225.635 IBT Cw¢unpOon Charge TO 2 MMBTU $ OON 225.170 $ 024M 2.739.648 27 18T CpnwnpEm Charge Tm 3 MMBTU $ 00186 $ 0DIM 87'aw 18T Cmeumpllon Charge Tier 3 MMBTU $ 00044 88.480 $ 00530 I'Xz's9 a $ 44.603.457 $ 44.]9].060 S 605.]39.1]] 29 wv d 6 PeOl � H - ! ;;�■ : ! ■ -- ! - � ~\^\\ \26 \\ ��^\�\�\ !$/ E WW \ j \\\E.\!) a ! ! 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