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: $