ORD 2013-38TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2013-38
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, 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 IN ALL
CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING
EXISTING RATES TO BE UNREASONABLE; 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; REQUIRING THE COMPANY TO
REIMBURSE CITIES' REASONABLE RATEMAKING
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 Town of Trophy Club, Texas ("Town") 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 Town is a member of the Atmos Cities Steering
Committee ("ACSC"), a coalition of approximately 164 similarly situated cities
served by Atmos Mid-Tex that have joined together to facilitate the review of and
response to natural gas issues affecting rates charged in the Atmos Mid-Tex
service area; 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 Gas Reliability
Infrastructure Program ("GRIP") process instituted by the Legislature; and
WHEREAS the Town 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, in 2013, ACSC and the Company negotiated a renewal of the
RRM tariff process for an additional five years; and
WHEREAS, the Town passed an ordinance renewing the RRM tariff
process for the Town 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 Town
its first annual RRM filing under the renewed RRM 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,
to resolve issues identified by ACSC in the Company's RRM filing; and
WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel
and consultants, recommend 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 TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all
things approved .
Section 2. That the Town 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. That Atmos Mid-Tex shall reimburse the reasonable
ratemaking expenses of the ACSC Towns in processing the Company's RRM
application.
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 anyone 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 ACSC 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 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 and
conditions, or benefits shall additionally and automatically accrue to the ACSC
cities, including the Town, without the need for Town to take any further action. If
this automatic adjustment occurs, Atmos Mid-Tex shall promptly thereafter file
with the Town an amended tariff documenting the adjustment to rates.
Section 8. 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 November 1,2013.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex,
care of Chris Felan, Manager of 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 by the Town Council of the Town of Trophy
Club, Texas, this the th day of October, 2013.
Connie White, Mayor
Town of Trophy Club, Texas
[SEAL)
APPROVED AS TO FORM:
Patricia A. Adams, Town Attorney
Town of Trophy Club, Texas