08-12-19-Resolution-Suspending the Atmos Energy Rate Request-08/05/2019RESOLUTION NO. 08-12-19
A RESOLUTION BY THE CITY OF SANGER, TEXAS, ("CITY")
RESPONDING TO THE APPLICATION OF ATMOS ENERGY
CORPORATION - MIDTEX DIVISION, TO INCREASE RATES UNDER
THE GAS RELIABILITY INFRASTRUCTURE PROGRAM;
SUSPENDING THE EFFECTIVE DATE OF THIS RATE APPLICATION
FOR FORTY-FIVE DAYS; AUTHORIZING THE CITY TO CONTINUE
TO PARTICIPATE IN A COALITION OF CITIES KNOWN AS THE
"ATMOS TEXAS MUNICIPALITIES;" DETERMINING THAT THE
MEETING AT WHICH THE RESOLUTION WAS ADOPTED COMPLIED
WITH THE TEXAS OPEN MEETINGS ACT; MAKING SUCH OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVEDATE.
WHEREAS, on or about June 13, 2019 Atmos Energy Cotporation-MidTex Division
("Atmos Energy") filed for an increase in gas utility rates under the Gas Reliability Infrastructure
Program ('GRIP"), which if approved, results in an increase in the monthly customer charges as
follows:
Current
Proposed 2018
Adjusted
Customer
Interim Rate
Customer
Increase
Rate Schedule
Charge
AdJustment
Charge
Per Bill
Rate R-
$18.88 per
$2.84 per
$21.72 per
Residential
customer per
customer per
customer per
Sales
month
month
month
$2.84
Rate C-
$43.47 per
$8.74 per
$52.21 per
Commercial
customer per
customer per
customer per
Sales
month
month
month
$8.74
WHEREAS, Atmos Energy's application, if approved by the Railroad Commission, will
result in a systemwide increase in Atmos Energy's revenue of about $67.1 million, of which
ATM's pottion is about $6.6 million; and
WHEREAS, the City has a special responsibility to exercise due diligence with regard to
rate increases of monopoly utilities who operate within its boundaries; and
WHEREAS, the application to increase rates by Atmos Energy is complex; and
WHEREAS, it is necessary to suspend the effective date for the increase in rates for
fotty-five days, so that the City can assure itself that the data and calculations in Atmos Energy's
I of3
rate application are correctly done and are in conformity with section 104.301 of the Gas Utility
Regulatory Act; and
WHEREAS, the effective date proposed by Atmos Energy is August 12, 2019 but a
suspension by the City will mean that the rate increase cannot go into effect prior to September
26, 2019.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SANGER, TEXAS THAT:
Section 1. That the statements and findings set out in the preamble to this resolution are
hereby in all things approved and adopted.
Section 2. The City suspends the requested effective date by Atmos Energy for forty- five
days pursuant to the authority granted the City under Section 104.301 of the Texas Utilities Code
The City finds that additional time is needed in order to review the data and calculations that
provide the basis for the rate increase application.
Section 3. The City shall continue to act jointly with other cities that are part of a coalition
of cities known as the Atmos Texas Municipalities ("ATM").
Section 4. The City authorizes the law firm of Herrera Law & Associates, PLLC, to act
on its behalf in connection with Atmos Energy's application to increase rates.
Section S. To the extent Atmos Energy's application to increase rates under section I
04.30 I of the Gas Utility Regulatory Act (GURA) is considered a ratemaking proceeding, Atmos
Energy is ordered to reimburse the City's reasonable rate case expenses incurred in response to
Atmos Energy's rate increase application within 30 days of receipt of invoices for such expenses
to the extent allowed bylaw.
Section 6. A copy of this resolution shall be sent to Mr. Christopher A. Felan, Vice
President, Rates & Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway, Suite
1862, Dallas, Texas 75240; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 816
Congress Ave., Suite 950, Austin, Texas 7870I.
2 of3
Section 7. The meeting at which this resolution was approved was in all things conducted
in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 8. This resolution shall be effective immediately upon passage.
PASSED AND APPROVF�M this 5tl' Day of August 2019.
OF �S�'j�����
s,
MAYOR, Thomas E. Muir
ATTEST: 4i"?�a�r��►t�►4�>>���
ARY, Cheryl Price
3 of3