HomeMy WebLinkAboutOrdinance 3255 ORDINANCE NO. 3255
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS, ( "CITY) APPROVING AND ADOPTING
RATE SCHEDULE "RRM — RATE REVIEW MECHANISM" FOR ATMOS
ENERGY CORPORATION, MID -TEX DIVISION TO BE IN FORCE IN
THE CITY FOR A PERIOD OF TIME AS SPECIFIED IN THE RATE
SCHEDULE; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT
THIS ORDINANCE WAS PASSED N ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND ACSC LEGAL COUNSEL.
WHEREAS, the City of North Richland Hills, Texas ( "City ") is a gas utility customer of
Atmos Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "the
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 "), a
coalition of cities, most of whom retain original jurisdiction over the rates
and services of Atmos Mid -Tex; and
WHEREAS, in 2007 ACSC member cities and Atmos Mid -Tex collaboratively
developed the Rate Review Mechanism ( "RRM ") Tariff that allows for an
expedited rate review process controlled by cities as a substitute for the
legislatively- constructed Gas Reliability Infrastructure Program ( "GRIP ");
and
WHEREAS, the GRIP mechanism does not permit the City to review rate increases,
and constitutes piecemeal ratemaking; and
WHEREAS, the RRM process permits City review of requested rate increases and
provides for a holistic review of the true cost of service for Atmos Mid -Tex;
and
WHEREAS, the initial RRM tariff expired in 2011; and
WHEREAS, ACSC's representatives have worked with Atmos Mid -Tex to negotiate a
renewal of the RRM process that avoids litigation and Railroad
Commission filings; and
WHEREAS, the ACSC's Executive Committee and ACSC's legal counsel recommend
ACSC members approve the negotiated new RRM tariff; and
WHEREAS, the attached Rate Schedule "RRM — Rate Review Mechanism" ( "RRM
Tariff') provides for a reasonable expedited rate review process that is a
substitute for, and is superior to, the statutory GRIP process; and
Ordinance No. 3255
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WHEREAS, the expedited rate review process as provided by the RRM Tariff avoids
piecemeal ratemaking; and
WHEREAS, the RRM tariff reflects the ratemaking standards and methodologies
authorized by the Railroad Commission in the most recent Atmos Mid -Tex
rate case, G.U.D. No. 10170; and
WHEREAS, the RRM Tariff provides for an annual reduction in Atmos Mid -Tex's
requested rate increase of at least $3 million; and
WHEREAS, the RRM Tariff provides for a lower customer charge than if Atmos Mid -
Tex pursued GRIP filings; and
WHEREAS, the attached RRM Tariff as a whole is in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, CITY OF NORTH
RICHLAND HILLS, 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 RRM Tariff, which is attached hereto
and incorporated herein as Attachment A, is reasonable and in the public
interest, and is hereby in force and effect in the City.
SECTION 3. THAT to the extent any resolution or ordinance previously adopted by the
City Council is inconsistent with this Ordinance, it is hereby repealed.
SECTION 4. 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 5. THAT if any one or more sections or clauses of this Ordinance is judged 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 6. THAT this Ordinance shall become effective from and after its passage.
SECTION 7. THAT a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of
Christopher Felan, Vice President of Rates and Regulatory Affairs for
Atmos Mid -Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway,
Suite 1600, 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.
Ordinance No. 3255
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PASSED AND APPROVED on this the 10th day of June, 2013.
CITY OF RTH R LAND HILLS
L N
o y f ���''� By:
�= n
o= r ; Oscar T ino, Mayor
ATTEST-;\ r1 Ay
Patricia Hutson, City Secretary
APPRO ED #S TO FORM AND LEGALITY:
George A. SfaplesW City Attorney
APPROVED AS TO CONTENT:
14
Karen Bostic, Assistant City Manager
Ordinance No. 3255
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