HomeMy WebLinkAboutOrdinance 3278ORDINANCE NO. 3278
AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, 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 RARIFFS 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 City of North Richland Hills, 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 "), 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 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, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff
process for an additional five years; and
WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City
for an additional five years; and
Ordinance No. 3278
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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 City 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 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 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 Cities 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 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.
Ordinance No. 3278
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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 City, without the need for City to take any
further action. If this automatic adjustment occurs, Atmos Mid -Tex shall
promptly thereafter file with the City 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 on this the 14th day of October, 2013.
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By.
Patricia Hutson, City Secretary
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APPR /'ED AS TO O TENT:
Kar n Bostic, Assistant City Manager
Ordinance No. 3278
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