Res 092-2018 Atmos Rate Agreement 9/4/2018
Resolution No. 92-2018
Resolution approving a negotiated settlement between the Atmos
and Atmos Energy Corp., Mid-Tex
2018 rate review mechanism filings;
declaring existing rates to be unreasonable; adopting tariffs that
reflect rate adjustments consistent with the negotiated settlement;
finding the rates to be set by the attached settlement tariffs to be just
and reasonable and in the public interest; approving an attached
exhibit establishing a benchmark for pensions and retiree medical
benefits; approving an attached exhibit regarding amortization of
regulatory liability;
reasonable ratemaking expenses; determining that this resolution was
passed in accordance with the requirements of the Texas Open
Meetings Act; adopting a savings clause; declaring an effective date;
and requiring delivery of this resolution to the Company and the
legal counsel.
WHEREAS
, the City of Wichita Falls, Texas
Atmos Energy Corp., Mid--
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
-situated cities served by Atmos Mid-
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
, ACSC and the Company worked collaboratively to develop a new
process instituted by the Legislature, and that will establish rates for the ACSC Cities
based on the system-wide cost of serving the Atmos Mid-Tex Division; and
WHEREAS
, the RRM tariff was adopted by the City in a rate ordinance earlier this
year; and
WHEREAS
, on about April 1, 2018, Atmos Mid-Tex filed its 2018 RRM rate
request with ACSC Cities based on a test year ending December 31, 2017; and
WHEREAS
, ACSC coordinated its review of the Atmos Mid-Tex 2018 RRM filing
through its Executive Committee, assisted by ACS
WHEREAS
consultants, recommend that ACSC Cities approve an increase in base rates for Atmos
Mid-Tex of $24.9 million on a system-wide basis ($17.8 million of which is applicable to
ACSC members); and
WHEREASExhibit A
, the attached tariffs () implementing new rates are consistent
with the recommendation of the ACSC Executive Committee, are agreed to by the
Company, and are just, reasonable, and in the public interest; and
WHEREAS
, the Exhibit A rate tariffs incorporate the federal income tax rates that
became effective January 1, 2018; and
WHEREAS
, the settlement agreement sets a new benchmark for pensions and
Exhibit B
retiree medical benefits () and
WHEREAS
, the settlement agreement establishes an amortization schedule for
Exhibit C
regulatory liability (); and
WHEREAS
expenses associated with RRM applications;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1.
The findings set forth in this Resolution are hereby in all things approved.
2.
The City Council finds that the settled amount of an increase in revenues of
$24.9 million on a system-wide basis represents a comprehensive settlement of gas
utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex
within the municipal limits arising from Atmos Mid-ing, is in the public
Utilities Code.
3.
The existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Exhibit A, are
just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an
additional $24.9 million in revenue on a system-wide basis over the amount allowed
under currently approved rates. Such tariffs are hereby adopted.
4.
The ratemaking treatment for pensions and retiree medical benefits in Atmos
Mid-
incorporated herein.
5.
Amortization of regulatory liability shall be consistent with the schedule found in
attached Exhibit C attached hereto and incorporated herein.
6.
Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the
7.
To the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Resolution, it is hereby repealed.
8.
The meeting at which this Resolution was approved was in all things conducted
in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
9.
If any one or more sections or clauses of this Resolution is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the
remaining provisions of this Resolution, and the remaining provisions of the Resolution
shall be interpreted as if the offending section or clause never existed.
10.
Consistent with the City Ordinance that established the RRM process, this
Resolution 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, 2018.
11.
A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris Felan,
Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy
Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay,
General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas, 78701.
th
PASSED AND APPROVED this 4 day of September, 2018.
ATTEST: ______________________________
M A Y O R
____________________
City Clerk