O-3178-10-13ORDINANCE NO. 3178-10-13
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, 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; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS
CONSISTENT WITH THE SETTLEMENT AND FINDING THE RATES SET BY
THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; REQUIRING THE
COMPANY TO REIMBURSE CITI V REASONABLE RATEMAETNG 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 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 Mid -Tex; and,
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of cities
served by Atmos Mid -Tex that have joined together to facilitate the review of natural gas issues affecting
rates charged in the Atmos Mid -Tex service area; and,
WHEREAS, in 2007 ACSC Cities and the Company worked collaboratively to develop a Rate Review
Mechanism ("RRM") tariff that allowed 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,
WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff process and the City
passed an ordinance approving the renewed RRM tariff process 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 RIM 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; and,
WHEREAS, the ACSC Executive Committee recommends 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.
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 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. Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC Cities in
processing the Company's RRM application.
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 shall be interpreted as if the offending section or clause never existed.
' SECTION 7. If ACSC determines any rates, revenues, terms, 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, or benefits shall additionally and automatically accrue to the ACSC Cities,
without the need for the City to 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. 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. A copy of this Ordinance shall be sent to Atmos Mid -Tex, 5420 LBJ Freeway, Suite 1862,
Dallas, Texas 75240, and to Lloyd Gosselink Rochelle & Townsend, P.O. Box 1725, Austin, Texas 78767.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY TEXAS, ON THIS 8"r DAY OF OCTOBER, 2013.
APP VED:
Stephe Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
Peter G. Smith, OTY ATTORNEY Shelley B. George, IMMC, CITY SE92RETARY