0926OFFICIAL RECORD
ORDINANCE N0.926
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, ("CITY") APPROVING A
SETTLEMENT AGREEMENT BETWEEN THE ATMOS
CITIES STEERING COMMITTEE AND ATMOS ENERGY
CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR
"THE COMPANY") REGARDING THE COMPANY'S
STATEMENT OF INTENT TO CHANGE GAS RATES IN
ALL CITIES EXERCISING ORIGINAL JURISDICTION;
DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT
RATE ADJUSTMENTS CONSISTENT WITH THE
SETTLEMENT AGREEMENT AND FINDING THE RATES
TO BE SET BY THE ATTACHED TARIFFS TO BE JUST
AND REASONABLE; ADOPTING A SAVINGS CLAUSE;
DETERMINING THAT THIS ORDINANCE WAS PASSED
IN ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT; DECLARING AN
EFFECTIVE DATE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND LEGAL
COUNSEL.
WHEREAS, the City of Southlake, Texas ("City") is a gas utility customer of Atmos
Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "the Company"), and a regulatory
authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, on or about September 20, 2007, Atmos Mid-Tex, pursuant to Gas Utility
Regulatory Act § 104.102 filed with the City a Statement of Intent to increase system-wide gas
rates by approximately $52 million, such increase to be effective in all municipalities exercising
original jurisdiction within its Mid-Tex Division service area effective on October 25, 2007; and
WHEREAS, the City took action to suspend the October 25, 2007 Effective Date and to
coordinate a response to Atmos' filing with more than 150 other similarly situated municipalities
through the Atmos Cities Steering Committee ("ACSC") (such participating cities are referred to
herein as "ACSC Cities"); and
Atmos Rate Ordinance 1
WHEREAS, Atmos has agreed to extend the October 25, 2007, Effective Date such that
the City's jurisdiction over this matter ends March 1, 2008; and
WHEREAS, the Railroad Commission of Texas ("RRC" or the "Commission") in GUD
No. 9670, issued an Order approving new system-wide rates for customers of Atmos Energy's
Mid-Tex Division in March 2007, which increased residential base rates by approximately $10
million annually; and
WHEREAS, ACSC and Atmos have each appealed the RRC's decision in Atmos' most
recent system-wide rate increase as well as the decision rendered in GUD No. 9400 to the Travis
County District Court; and
WHEREAS, Atmos and ACSC have been in continuing disagreement, dispute, and
litigation over the application of Section. 104.301 of the Texas Utilities Code and the resulting
rate increases ("GRIP surcharges") established by the RRC; and
WHEREAS, Atmos filed its application for its fourth GRIP surcharge in four years on
May 31, 2007, seeking to increase the rates of all customers by approximately $12 million
annually; and
WHEREAS, the ACSC Cities desire to avoid the litigation expense that would result
from another lengthy contested rate case proceeding before the RRC as well as the prosecution
of the appeals in various courts of the GRIP surcharges and the two previous system-wide rate
decisions; and
WHEREAS, ACSC desires to recoup certain costs it previously incurred in connection
with GRIP-related proceedings (costs which Atmos contends are not reimbursable rate case
expenses under the Texas Utilities Code), as well as costs incurred in connection with this
proceeding; and
Atmos Rate Ordinance 2
WHEREAS, on October 18, 2007, more than 60 ACSC members met in Arlington with
officers and executives of Atmos to discuss various issues, including rate making, resulting in a
mutual pledge to work toward settlement; and
WHEREAS, ACSC members designated a Settlement Committee made up of ACSC
representatives to work with ACSC attorneys and consultants to formulate and review reasonable
settlement positions to resolve outstanding matters with Atmos, including the pending rate
increase request; and
WHEREAS, the Settlement Committee and lawyers representing ACSC met several
times with the Company to negotiate a Settlement Agreement resolving the issues raised in the
Company's Statement of Intent filing as well as all outstanding appeals of the two prior rate cases
and various GRIP filings; and
WHEREAS, the Settlement Committee, as well as ACSC lawyers and consultants believe
existing rates are unreasonable and should be changed; and
WHEREAS, the ACSC Executive Committee recommends ACSC members approve the
negotiated Settlement Agreement and attached tariffs; and
WHEREAS, the attached tariffs provide for an expedited rate review process as a
substitute to the current GRIP process instituted by the Legislature; and
WHEREAS, the expedited rate review process as provided by the Rate Review
Mechanism Tariff eliminates piecemeal ratemaking, the ACSC's major objection to the current
GRIP process; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
Settlement Agreement and are just, reasonable, and in the public interest; and
Atmos Rate Ordinance 3
WHEREAS, it is the intention of the parties that ACSC Cities receive the benefit of any
Settlement Agreement that Atmos enters into with other entities arising out of its Statement of
Intent or any associated appeals of a decision entered by the Railroad Commission regarding the
Company's request to increase rates; and
WHEREAS, the Settlement Agreement as a whole is in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds that the Settlement Agreement, which is attached
hereto and incorporated herein as Attachment A, is in the public interest and is hereby
endorsed in all respects.
Section 3. That 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 B, are just and reasonable and are hereby adopted.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council 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 the Ordinance shall be interpreted
as if the offending section or clause never existed.
Atmos Rate Ordinance 4
Section 7. That if ACSC Cities determine any rates, revenues, terms and conditions, or
benefits resulting from a Final Order or subsequent Settlement Agreement approved in any
proceeding addressing the issues raised in Atmos' Statement of Intent would be more beneficial
to the ACSC Cities than the terms of the attached Settlement Agreement, then the more favorable
rates, revenues, terms and conditions, or benefits shall additionally accrue to the ACSC Cities.
However, approval of the attached Rider RRM, Rider CEE, Rider GCR and the Rider WNA
shall not be affected by the application of the provisions contained in this section, it being the
understanding and the intent of the parties hereto that such tariffs shall continue according to
their terms.
Section 8. That this Ordinance shall become effective from and after its passage with
rates authorized by attached Tariffs to be effective for customer bills delivered on or after March
1, 2008.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Joe T.
Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink
Blevins Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this ~Q+h day of , 2008.
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Atmos Rate Ordinance 5
APP OV O
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City Attorney
Atmos Rate Ordinance
INVOICE Draft Only
Star-Telegram Customer ID: CIT57
400 W.7TH STREET Invoice Number: 293733891
FORT WORTH,TX 76102
(817)390-7761 � ] Invoice Date: 2/1/08
Federal Tax ID 22-3148254 FEB 2 6 LUUBJ Terms: Net due in 21 days
Due Date: 2/29/08
Bill To: PO Number: NO PO
CITY OF SOUTHLAKE
1400 MAIN ST Order Number: 29373389
STE 440 Sales Rep: 073
SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA
Attn Attn:ACCOUNTS PAYABLE Publication Date: 2/1/08
I Description Location Col Depth Linage ` MU Rate Amount ,
OF SOUTHLAKE Legal Notices i
CITY OF SOUTHLA. NoticeTY IIIMMINEMINIIIIMIIIMMO,
is hereby given 1 84 84 LINE $0.81 $68.04
by the City Council CORP., MID-TEX DI-
of the City of VISION ("ATMOS
Southlake, Texas, MID-TEX" OR "THE
that a public hearing COMPANY") RE
Sales Discount will be held on Feb- GARDING THE RECEIVED ($5.00)
ruary 19, 2008, at C 0 M P A N Y S
5:00 p.m. or imme- STATEMETN OF
diatelMisc Fee Work ySession,9dure INTENT TO CHANGE
GAS RATES ALL $5.00
ing the Regular City CITIES EXERCISING
Council meeting to ORIGINAL JURIS-
be held in the City DICTION; DECLAR-
Council Chambers of ING EXISTING'
Town Hall, 1400 RATES TO BE UN-
Main Street, South- REASONABLE•.
lake,Texas. Purpose ADOPTING TARIFFS'
of the public hearing THAT REFLECT lr-tr• (/'� Net Amount:is to consider the RATE $68.04
the ADJUST-
second following reading
of ENT S WITHONTHE 1 of 1 ICE OF CITY SECRETARY
nance: SETTLEMENT!
ORDINANCE AGREEMENT AND
NO. 926 FINDING THE RATES
AN ORDINANCE OF TO BE SET BY THE
THE CITY COUNCIL ATTACHED TARIFFS '
OF THE CITY OF TO BE JUST AND
SOUTHLAKE, TEX-REASONABLE;
AS APPROVING A ADOPTING A SAV-
SETTLEM E N T INGS CLAUSE; DE-
AGREEMENT BE-TERMINING THAT 1 I I or V
TWEEN THE ATMOS THIS ORDINANCE 7,q
CITIES STEERING WAS PASSED IN y
COMMITTEE AND ACCORDANCE WITH G1RISIY L HOLUWD
ATMOS ENERGY THE REQUIRE- • ''','N i*`- MY COMMISSION EXPIRES
MENTS OF THE Y.: �y31'20113
TEXAS OPENING , ,7
THE STATE OF TEXAS DECLARING ANAEF- i
FECTIVE DATE;AND
County of Tarrant REQUIRING DELIV-
ERY OF THIS ORDI-
NANCE TO THE
Before me,a Notary Public in and for said( COMPANY EL, LE- day personally appeared Deborah Baylor, Bid and Legal Coordinator for the
Star-
CivethlakeTelegram,published by the Star-Telegram, r of Tarrant County,Texas;and who,after being duly sworn,did depose and say that the
attached clipping of an advertisement was City Secretary _ e named paper on the listed dates:BIDS&LEGAL DEPT. STAR TELEGRAM
PP 9 I---�- P P
(817)390-7501
Signed �Y 443-41\(
(bl4)
SUBSCRIBED AND SWORN TO BEFORE ME,THIS Sunday, F ruary 08.
Notary Public
Thank You For Your Payment
Remit To: Star-Telegram Customer ID: CIT57
P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE
FORT WORTH, TX 76101-2051 Invoice Number: 293733891
Invoice Amount: $68.04
PO Number: NO PO
Amount Enclosed: $
INVOICE Preview
Star-Telegram Customer ID: CIT57
400 W.7TH STREET Invoice Number: 294448031
FORT WORTH,TX 76102
(817)390-7761 Invoice Date: 2/22/2008
Federal Tax ID 22-3148254 \- �, _ r Terms: Net due in 21 days
----
MAR Due Date: 2/29/2008
Bill To: " " ,
CITY OF SOUTHLAKE '�-'' PO Number: NO PO
1400 MAIN ST Order Number: 29444803
STE 440 Sales Rep: 073
SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA
Attn Attn:ACC• 11 i. 's i =..
Publication Date: 2/22/2008
Description N-'- • m i, on Col Depth Linage MU Rate Amount
CITY OF -
O SOUTHLAK£
CITY OF SOUTHLAKE An ordinance the I3580 1 58 58 LINE $0.81 $46.98
city council of the
city of SOUTHLAKE, `$5 00�
Sales Discount Texas, ("city") ap-
proving a settlement I r. r L 0 Y/6 l
agreement between
the Atmos Cities
Steering Committee
Misc Fee and ATMOS ENERGY $5.00
CORP. MID-TEX DI-
VISION ("Atmos
MID-TEX" or "the J tu08
company")regarding
the company's
Statement of Intent $46.98
to change gas rates
in all cities exercis- Net Amount:
rig original jurisdic- r r' I 1 r
tion; declaring EX- C 'i S�,CRETAR
!STING rates to be I �, '•�1 ��..,
unreasonable;
adopting tariffs that
reflect rate adjust-
ments consistent
with the settlement
agreement and
finding the rates to
be set by the at-
tached tariffs to be t�
just and reasonable; *: "'3 MY COMMISSION EXPIRES
ADOPTING A SA - .. July 31,2008
INGS CLAUSE; de- ' 4 *�;�
termining that this ; ,� ',� ,,,
ordinance was a
passed in accordance i
THE STATE OF TEXAS MENTS of the Texas
OenCounty of Tarrant declaring Bang effec-
tive date; AND RE-
QUIRING IS Delivery
OF
To
Before me,a Notary Put g the company anF d my and State,this day personally appeared Deborah Baylor, Bid and Legal Coordinator for the Star-
Telegram,published by PASSED u AND AP-.at Fort Worth,in Tarrant County,Texas;and who,after being duly sworn,did depose and say that the
attached clipping of an E 19tOhVDAYTOF FEB ished in th bove named paper on the listed dates: BIDS&LEGAL DEPT. STAR TELEGRAM
(817)390-7501 RUARY, 2008, DUR-
ING THE REGULAR
CITY COUNCIL
MIZOrlel.
G. Andy Signed
Wambsganss
ATTEST: Lori Payne,
City secretary THIS Sunday, F rua ,2008.SUBSCRIBED AND SVlvrtly ICE oLi vi.�,.�.,
Notary Public L(/K
Thank You For Your Payment
Remit To: Star-Telegram Customer ID: CIT57
P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE
FORT WORTH, TX 76101-2051 Invoice Number: 294448031
Invoice Amount: $46.98
PO Number: NO PO
Amount Enclosed: $