O-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.
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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
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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
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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.
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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.
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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
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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
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