Loading...
0959 ORDINANCE NO. 959 OFFICIAL RECORD AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, ("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE ("ACSC" OR "STEERING COMMITTEE") AND ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "COMPANY") REGARDING THE COMPANY'S RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; APPROVING ATMOS' PROOF OF REVENUES; 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 THE STEERING COMMITTEE'S 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 " 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" or "Steering Committee"), a coalition of more than 150 similarly situated cities served by Atmos Mid-Tex that have joined together to facilitate the review and response to natural gas issues affecting rates charged in the Atmos Mid-Tex service area (such participating cities are referred to herein as "ACSC Cities"); and WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to Atmos RRM Ordinance 1 develop the Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process controlled in a three year experiment by ACSC Cities as a substitute to the current GRIP process instituted by the Legislature; and WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff, and WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of ACSC Cities' reasonable expenses associated with RRM applications; and WHEREAS, on or about March 6, 2009, Atmos Mid-Tex filed with the City its second application pursuant to the RRM tariff to increase natural gas rates by approximately $20.2 million, such increase to be effective in every municipality that has adopted the RRM tariff within its Mid-Tex Division; and WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a Settlement Committee made up of ACSC representatives and assisted by ACSC attorneys and consultants to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed; and WHEREAS, independent analysis by ACSC's rate expert concluded that Atmos Mid-Tex is able to justify a slight rate increase over current rates; and WHEREAS, the Steering Committee has advocated in other proceedings that Atmos Mid-Tex hedge natural gas futures in order to mitigate the volatility of natural gas prices, which are a flow through to customers; and Atmos RRM Ordinance 2 WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and consultants, recommend that ACSC members approve the attached rate tariffs ("Attachment A" to this Ordinance), which will increase the Company's revenue requirement by $2.6 million; and WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues ("Attachment B" to this Ordinance) are consistent with the negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest; and WHEREAS, it is the intention of the parties that if the City determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in the Company's RRM filing would be more beneficial to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City; and WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting rates are, as a whole, 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 existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable and new tariffs and Atmos' Proof of Revenues, which are attached hereto and incorporated herein as Attachments A and B, are just and reasonable and are hereby adopted. Section 3. That Atmos Mid-Tex shall reimburse the reasonable rate making expenses of the ACSC Cities in processing the Company's rate application. Atmos RRM Ordinance 3 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. Section 7. That if the City determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in the Company's RRM filing would be more beneficial to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City. Section 8. That the Company's Gas Cost Recovery tariff is revised to permit recovery of certain costs associated with hedging natural gas futures. Section 9. That 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 August 1, 2009. Section 10. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of David Park, Vice President Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. Atmos RRM Ordinance 4 PASSED AND APPROVED on first reading this 2131 day of , 2009. ,te + t "'I ATTEST: Mayor U) z ~J/.~(//J w `.f m m m m City Secretary 'rs~~111 d l: S 711 S~a(8 S, PASSED AND APPROVED ON second reading this q6 day of U~St , 2009. (;ayor ATTEST: m City Secre s ° r APPRO ED AS TO FORM: ✓~~+aa++s 5eaa5ays wa. City Attorney Atmos RRM Ordinance 5 INVOICE Preview Star-1 Aegram 400 W. 7TH STREET FORT WORTH, TX 76102 (817)390-7761 Federal Tax ID 26-2674582 Bill To: CITY OF SOUTHLAKE 1400 MAIN ST STE 440 SOUTHLAKE, TX 76092-7604 Attn: CITY OF SOUTHLAKE Notice is he Sales Discount Misc Fee t17 RE-( E ; ,,, THE STATE OF TEXAS County of Tarrant AUG - 5 2009 c\w °F 0 0 Qi7Mo I3580 IV FARY 1 Customer ID: CIT57 Invoice Number: 305691301 Invoice Date: 7/17/2009 Terms: Net due in 21 days Due Date: 7/31/2009 PO Number: NO PO Order Number: 30569130 Sales Rep: 073 Description: CITY OF SOUTHLA Publication Date: 7/17/2009 93 93 LINE $0.81 $75.33 ($5.00) $5.00 Net Amount: $75.33 E'eSuAL' CHRISI L. HOANDMy Commission xp July 31, 2012 Before me, a Notary Public in and for said County and State, this day personally appeared Deborah Baylor Norwood, Bid and Legal Coordinator for the Star -Telegram, published by the Star -Telegram, Inc. at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say that the attached clipping of an advertisement was published in the above named paper on the listed dates: BIDS & LEGAL DEPT. STAR TELEGRAM (817) 390-7501 � Signed SUBSCRIBED AND SWORN TO BEFORE ME, THIS Tuesday, my J409. A Notary Publi Thank You For Your Payment ----------------------------------------------------- Remit To: Star -Telegram P.O. BOX 901051 FORT WORTH, TX 76101-2051 Customer ID: Customer Name: Invoice Number: Invoice Amount: PO Number: Amount Enclosed CIT57 CITY OF SOUTHLAKE 305691301 $75.33 NO PO CITY OF SOUTHLAKE Notice is hereby given by the City Council of the City of Southlake, Texas, that a public hearing will be held on Au- gust 4, 2009, at 5:30 p.m. or immediately following the Work Session, during the Regular City Council meeting to be held in the City Council Chambers of Town Hall, 1400 Main Street, Southlake, Texas.. Purpose of the public hearing. is to consider the sec - MI JY'S RATI MECHA LING IN ALI NG ORIGI RISDICTION ING EXIST TES TO BI SONABLE AN Al city Lori City �E I1�T�J�17 Star-Telegram1� Customer ID: CIT57 Print 400 W. 7TH STREET Invoice Number: 306045841 FORT WORTH,TX 76102 / I (817)390-7761 !„"; ; )�F CF7p Invoice Date: 8/7/2009 Federal Tax ID 26 2674582 �'�pTf/ /( Terms: Net due in 21 days '.',1,..DENIM*. Due Date: 8/31/2009 Bill To: \� �FNT PO Number: #20900115-000 CITY OF SOUTHLAKE 1400 MAIN ST Order Number: 30604584 STE 440 Sales Rep: 073 SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA Attn:Attn: SUSANA MARIN Publication Date: 8/7/2009 CITY �^ CITY OF OORDINANCE E IMBURSE CITIES 3580 1 79 79 LINE $0.81 $63.99 NO. 959 REASONABLE AN ORDINANCE OF RATEMAKING EX- Sales Dis, TOFE THEY CIOTYNOF TARIFFS THATTRE- ($5.00) SOUTHLAKE, TEX- FLECT RATE AD- AS, ("CITY") AP- JUSTMENTS CON- PROVING A NEGO- SISTENT WITH THE ` ( $5.00 Misc Fee TION BETWEENOTHE TLEMENT LU- NEGOTIATED AND r r`k+ED ATMOS CITIES FINDING THE RATES R 1... OR.3 �` STEERING COM- TO BE SET BY THE MITTEE("ACSC"OR ATTACHED TARIFFS " STEERING TO BE JUST AND COMMITTEE") AND REASONABLE; AP- ATMOS ENERGY PROVING ATMOS' $63.99 CORP., MID-TEX DI- PROOF OF REVE- Net Amount: VISION ("ATMOS NUES; ADOPTING A AUG „' MID-TEX" OR SAVINGS CLAUSE "COMPANY") RE- D ET E R M I N I N d GARDING THE THAT THIS ORDI- COMPANY'S RATE NANCE WAS _ .,..mr r f.^ I REVIEW MECHA- PASSED IN ACCOR- _ NISM FILING IN ALL DANCE WITH THECITIES RE OF ^7 {/af EXERCISING ORIGI- THEU IREMENTS TEXAS OPEN �, F\'.'6• �'" NAL JURISDICTION; MEETINGS ACT; DECLARING EXIST- DECLARING AN EF- ING RATES TO BE FECTIVE DATE;AND •..uW UNREASONABLE• REQUIRING DELIV- REQUIRING THE ERY OF THIS ORDI 4.•••••••• ".""'"'"""A"". i - COMPANY TO RE- NANCE TO THE - COMPANY AND THE o" ,�4;- CHRISTY L.HOLLAND STEERING COM- z�i`` My Commission Expires MITTEE'S LEGAL THE STATE OF TEXAS COUNSEL. July 31,2012 AND AP-County of Tarrant PASSED PROVEDTHIS THE 4�oi VT 4th DAY OF AU- TI�EGULAR CITY THE Before me,a Notary Public in COUNCIL MEETING.Ind State,this day personally appeared Deborah Baylor Norwood,Bid and Legal Coordinator for the Star-Telegram,published MAYOR: John Terrell Inc.at Fort Worth,in Tarrant County,Texas;and who,after being duly sworn,did depose and say ATTEST: Lori Payne,' that the attached clipping of a City Secretary published in the above named paper on the listed dates:BIDS&LEGAL DEPT. STAR TELEGRAM (817)390-7501 ,......\3 Signed C SUBSCRIBED AND SWORN TO BEFORE ME,THIS Monday,Au st 1 9. Notary Public Ad.. ,:::4 ,1-14 .) 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: 306045841 Invoice Amount: $63.99 PO Number: #20900115-000 Amount Enclosed: $