Ord 38-2019 Atmos Cities Steering Committee Settlement with Atmos 09/03/2019
Ordinance No. 38-2019
An Ordinance of the City Council of the City of Wichita Falls, Texas,
approving a negotiated settlement between the Atmos Cities Steering
ACSCAtmos Energy Corp., Mid-Tex Division
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; requiring the Company to reimburse ACSC
reasonable ratemaking expenses; 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;
and requiring delivery of this ordinance to the company and the
ACSC
WHEREAS, the City of Wichita Falls, Texas, is a gas utility customer of Atmos
Energy Corp., Mid-Tex Mid-Tex
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-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, ACSC and the Company worked collaboratively to develop a new
by ACSC Cities as a substitute to the GRIP
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 current RRM tariff was adopted by the City in a rate ordinance in
2018; and
WHEREAS, on about April 1, 2019, Atmos Mid-Tex filed its 2019 RRM rate request
with ACSC Cities based on a test year ending December 31, 2018; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2019 RRM filing
through its Executive Committee, assisted by attorneys and consultants, to
WHEREAS, the Executive Committee, as well as counsel and
consultants, recommend that ACSC Cities approve an increase in base rates for Atmos
Mid-Tex of $35.4 million applicable to ACSC Cities; and
WHEREAS, the attached tariffs (Exhibit A) 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 settlement agreement sets a new benchmark for pensions and
retiree medical benefits (Exhibit B); and
WHEREAS, the settlement agreement establishes an amortization schedule for
regulatory liability (Exhibit C); and
WHEREAS, the RRM Tariff contemplates reimbursement of reasonable
expenses associated with RRM applications;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS:
Section 1.
That the findings set forth in this Ordinance are hereby in all things
approved.
Section 2.
That, without prejudice to future litigation of any issue identified by
ACSC, the City Council finds that the settled amount of an increase in revenues of $35.4
million for ACSC Cities 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-2019 RRM filing, is in the public interest,
and iauthority under Section 103.001 of the Texas Utilities
Code.
Section 3.
That 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 $35.4 million from customers in ACSC Cities, over the amount allowed
under currently approved rates. Such tariffs are hereby adopted.
Section 4.
That the ratemaking treatment for pensions and retiree medical
benefits in Atmos Mid-next RRM filing shall be as set forth on Exhibit B, attached
hereto and incorporated herein.
Section 5.
That amortization of regulatory liability shall be consistent with the
schedule found in attached Exhibit C attached hereto and incorporated herein.
Section 6.
That Atmos Mid-Tex shall reimburse the reasonable ratemaking
expenses of the ACSC 2019 RRM filing.
Section 7.
That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 8.
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 9.
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 10.
That consistent with the City Ordinance that established the RRM
process, 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, 2019.
Section 11.
That a copy of this Ordinance 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.
rd
PASSED AND APPROVED this 3 day of September, 2019.
M A Y O R
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney