0984 ORDINANCE NO. 984 OFFICIAL RECD
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 THIRD
RATE REVIEW MECHANISM ( "RRM") 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 MID-TEX'S PROOF
OF REVENUES; EXTENDING THE RRM PROCESS FOR
TWO CYCLES AND ADOPTING A NEW RRM TARIFF;
RATIFYING THE SETTLEMENT AGREEMENT,
INCLUDING COST RECOVERY FOR A STEEL SERVICE
LINE REPLACEMENT PROGRAM; 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 approximately 148 similarly situated cities served by
Atmos Mid -Tex that have joined together to facilitate the review of and response to natural gas
Atmos RRM Ordinance 1
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
develop a 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 15, 2010, Atmos Mid -Tex filed with the City its third
application pursuant to the RRM tariff to increase natural gas base rates by approximately $70.2
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 Mid -Tex's RRM filing by
designating a Settlement Committee made up of ACSC representatives, 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 an increase over current rates of $21 million; and
Atmos RRM Ordinance 2
WHEREAS, Atmos Mid -Tex has commenced a program to replace steel service lines
based on a relative leak repair risk analysis; and
WHEREAS, the Steering Committee has entered a Settlement Agreement ( "Attachment
C" to this Ordinance) with Atmos Mid -Tex to: (1) increase base rate revenues by $27 million; (2)
extend the RRM process, with modifications for an additional two cycles and to thereafter
require the filing of a system -wide Statement of Intent rate case on or before June 1, 2013; and
(3) in the interim to allow current recovery of incremental direct costs of the steel service line
replacement program in rates set via this ordinance and in future RRMs; and
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 $27 million; and
WHEREAS, the attached tariffs implementing new rates and Atmos Mid -Tex's 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 Third
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.
Atmos RRM Ordinance 3
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 fords the existing rates for natural gas service provided
by Atmos Mid -Tex are unreasonable and new tariffs and Atmos Mid -Tex's 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 ratemaking expenses of
the ACSC Cities in processing the Company's rate application.
Section 4. That the Settlement Agreement, attached as Attachment C, which includes in
addition to resolution of the Third RRM: (1) extension of a modified RRM process; (2)
requirement that Atmos Mid -Tex file a system -wide Statement of Intent rate case on or before
June 1, 2013; and (3) current recovery of incremental direct costs for a steel service line
replacement program, is hereby ratified.
Section 5. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 6. 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 7. 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 RRM Ordinance 4
Section 8. 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 Third 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 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 October 1, 2010.
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 1862, 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.
PASSED AND APPROVED on first reading this 1I6f day of (O € "f/).M
2010.
Mayor
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City Secretary •'•
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Atmos RRM Ordinance 5
PASSED AND APPROVED on second reading this Ofh day of
4hQ,4) , 2010.
Mayor
ATTEST:
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City Secretary ; 0 t.
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APPROVED AS TO FORM:
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City Attorney
Atmos RRM Ordinance 6
INVOICE
Star -Telegram
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: Attn: ACCOUNTS PAYABLE
CITY OF SOUTHLAKE Legal NOtIC@5
Notice is hereby given by the City
Customer ID:
CIT57
Invoice Number:
312588101
Invoice Date:
10/10/2010
Terms:
Net due in 21 days
Due Date:
10/31/2010
PO Number:
NO PO
Order Number: 31258810
Sales Rep: 073
Description: CITY OF SOUTHLA
Publication Date: 10/10/2010
Council of the City of SOuthldke, 'Texas, that a public hearing will be
CITY OF SOUTHL
held on October 5, 2010, at 5:30
p.m. or immediately following the
1 62 62 LINE $19.18 $1,189.20
Work Session, during the Regular
City Council meeting to be held in
Sales Discount
the City Council Chambers of Town
($1,093.00)
Hall, 1400 Main Street, Southlake,
Texas. Purpose of the public hearing
MisC Fee
is to consider the second reading
of the following ordinance:
$10.00
ORDINANCE NO. 984
AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, ("CITY")
APPROVING A
GCOMMITD
Net Amount: $106.20
MOSO CITIES ES STEERING
"STEERING
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COMMITTEE") AND ATMOS EN-
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ERGY CORP., MID-TEX DIVISION
MID-TEX" OR
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("ATMOS
"COMPANY") REGARDING THE
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COMPANY'S THIRD RATE REVIEWro
MECHANISM ("RRM") FILING IN
—
ALL CITIES EXERCISING ORIGINAL
DECLARING EX-
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JURISDICTION;
ISTING RATES TO BE UNREA-
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SONABLE; REQUIRING THE COM-
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REASONABLE ATEMAKINGTIESEX-
PENSES; ADOPTING TARIFFS
THAT REFLECT RATE ADJUST-
MENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT AND
County of Tarrant
FINDING THE RATES TO BE SET
BY THE ATTACHED TARIFFS TO
Before me, a Notary Pubi
BE JUST AND REASONABLE; AP -
PROVING ATMOS MID-TEX'S
te, this day personally appeared, Deborah Baylor Norwood, Bid and Legal Coordinator for
the Star -Telegram, publi
PROOF OF REVENUES; EXTENDING
Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say
that the attached clipping
THE FOR TWO
CYCL SRANDROCESS ADOPTING A NEW
ed in the above named paper on the listed dates: BIDS & LEGAL DEPT. STAR TELEGRAM
(817) 390-7501
RRM TARIFF; RATIFYING THE
SETTLEMENT AGREEMENT, IN-
A
CLUDING COST RECOVERY FOR A
STEEL SERVICE LINE REPLACE-
MENT PROGRAM; ADOPTING A
SAVINGS CLAUSE; DETERMINING
SUBSCRIBED AND SW
THAT THIS ORDINANCE WAS
asday, October 12, 2 1.0
PASSED IN ACCORDANCE WITH
THE " REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT;
Dubuc
DECLARING AN EFFECTIVE DATE;
AND REQUIRING DELIVERY OF
THIS ORDINANCE Tt <THT COM-
PANY AND THE STEERING CC,M-
MITTEE'S LEGAL COUNSEL.
City of Southlake
Lori Payne
Thank You For Y City Secretary
Remit To: Star -Telegram
P.O. BOX 901051
FORT WORTH, TX 76101-2051
Customer ID: CIT57
Customer Name: CITY OF SOUTHLAKE
Invoice Number: 312588101
Invoice Amount: $106.20
PO Number: NO PO
Amount Enclosed: $
INVOICE
Star -Telegram
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
W
SEP 2 2 2010
Customer ID: CIT57
Invoice Number: 312259551
Invoice Date:
Terms:
Due Date:
PO Number:
Order Number:
Sales Rep:
Description:
Publication Date:
9/17/2010
Net due in 21 days
9/30/2010
21000007-000.
31225955
073
CITY OF SOUTHLA
9/17/2010
Descr CITY OF SOUTHLAKE ( Location Cold, age; MU Rate Amount
Notice is hereby given by the City
Council of. the City of Southlake,
Texas, that a public hearing will be
CITY OF held on October 5, 2010, at 5:30 I3580 1 62 62 LINE $17.30 $1,072.64
p.m. or immediately following the
Work Session, during the Regular
Sales Disec City Council meeting to be held in ($976.62)
the City Council Chambers of Town
Hall, 1400 Main Street, Southlake,
Texas. Purpose of the public hearing $10.00
Misc Fee is to consider the second reading
of the following ordinance:
ORDINANCE N0, 984
.AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, ("CITY")
APPROVING A NEGOTIATED Net Amount' $106.02
RESOLUTION BETWEEN THE AT-
MOS CITIES STEERING COMMIT-
TEE ("ACSC" OR "STEERING R
ECEIVED ,
COMMITTEE") AND ATMOS EN-
ERGY CORP., MID-TEX DIVISION SOUI'HLAKE ��� 5� • • •., '��i�
("ATMOS MID-TEX" OR � � Q •' Y
"COMPANY") REGARDING THE 'I 71U ,spa
COMPANY'S. THIRD RATE REVIEW ? V Q ��
MECHANISM ("RRM") FILING IN �iL'i�A l "A T � 2 � n �:�
ALL CITIES EXERCISING ORIGINAL
JURISDICTION; DECLARING EX-
ISTING RATETO BE UNREA-
SONABLE; REQUIRING THE COM-
PANY TO REIMBURSE CITIES', ! OF g..,•
REASONABLE RATEMAKING EX -THE ! i� ,•'PIRA ��
TAI PENSES; ADOPTING TARIFFS
THAT REFLECT
RATE ADJUST -
County Countyo TSTENT W E
NEGOTIATED SETTLEMENT AND
FINDING THE RATES TO BE SET
Before mi BY THE ATTACHED TARIFFS TO bounty and State, this day personally appeared Deborah Baylor Norwood, Bid and Legal Coordinator for
the Star- BE JUST AND REASONABLE; AP- �Iegram, Inc. at Fort Worth, in Tarrant County, Texas; and who, after being duly sworn, did depose and say
that the a PROVING ATMOS MID-TEX'S
PROOF OF REVENUES; EXTENDING fnt was published in the above named paper on the listed dates: BIDS & LEGAL DEPT. STAR TELEGRAM
(817) 390 THE RRM PROCESS FOR TWO
CYCLES AND ADOPTING A NEW
RRM TARIFF;. RATIFYING THE I
SETTLEMENT AGREEMENT, IN- Signed N V,_km�
CLUDING COST RECOVERY FOR A
STEEL SERVICE LINE REPLACE-
SUBSCR MENT PROGRAM; ADOPTING A ME, THIS Friday, tmbe , >2. 10.SAVINGS CLAUSE; DETERMINING LIU1
THAT THIS ORDINANCE WASPASSED IN ACCORDANCE WITH Notary Publi
THE' REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT;
DECLARING AN EFFECTIVE DATE;
AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COM-
PANY AND THE STEERING COM-
MITTEE'S LEGAL COUNSEL.
City of Southlake
Thank Lori Payne It
City Secretary
Remit To: Star -Telegram Customer ID: CIT57
P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE
FORT WORTH, TX 76101-2051 Invoice Number: 312259551
Invoice Amount: $106.02
PO Number: 21000007-000.
Amount Enclosed: $