10-18-13-Ordinance-Approving the Atmos Energy Rate Change-10/07/2013ORDINANCE 910-18-13
AN ORDINANCE BY THE CITY OF SANGER, TEXAS ("CITY"),
APPROVING A CHANGE IN THE RATES OF ATMOS ENERGY
CORPORATION, MID-TEX DIVISION ("ATMOS") AS A RESULT OF A
SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS
MUNICIPALITIES ("ATM") UNDER THE RATE REVIEW
MECHANISM; FINDING THE RATES SET BY THE ATTACHED
TARIFFS TO BE JUST AND REASONABLE; DIRECTING ATMOS
ENERGY TO REIMBURSE THE CITY'S RATE -CASE EXPENSES;
FINDING THAT THE MEETING COMPLIED WITH THE OPEN
MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THE ORDINANCE TO THE COMPANY
AND LEGAL COUNSEL.
WHEREAS, the City of Sanger, Texas ("City") is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and under § 103,001 of GURA has exclusive original
jurisdiction over Atmos Energy Corporation — Mid -Tex Division's ("Atmos") rates, operations,
and service of a gas utility within the municipality; and
WHEREAS, Section 103.021 of GURA authorizes the City to obtain information from
Atmos as necessary to make a determination of the basis for the Atmos' proposed increase in
rates; and
WHEREAS, Section 103.022 of GURA provides that Atmos shall reimburse the City its
reasonable cost of engaging persomzel to assist it in reviewing Atmos' application; and
WHEREAS, the City has participated in prior cases regarding Atmos as part of a
coalition of cities laiown as the Atmos Texas Municipalities ("ATM"); and
WHEREAS, the Rate Review Mechanism ("RRM") for 2013 that Atmos filed with the
City Secretary on or around July 15, 2013 proposed a system -wide increase of $22.7million; and
WHEREAS, experts representing ATM have analyzed data furnished by Atmos and
have interviewed Atmos' management regarding the RRM; and
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WHEREAS, it is necessary to establish the benchmark cost for Pensions and Other Post
Employment Benefits (Pension/OPEB); and
WHEREAS, on September 26, 2013, ATM and Atmos entered into a settlement
agreement which would provide for a net increase of $16.6 million. This will cause the rates to
increase by $0.74 per month for a typical residential customer; and
WHEREAS, the settlement agreement's net decrease to Atmos' previously filed request
would be approximately 27% less than such filed RRM; and
WHEREAS, the Steering Committee of ATM and its counsel recommend approval of
the attached tariffs, set forth as Attaclunent A.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SANGER, TEXAS THAT:
Section 1. The findings set forth in this Ordinance are hereby in all things approved.
Section 2. The amended tariffs in Attachment A are hereby adopted to become effective
on November 1, 2013.
Section 3. The benclunark for Pension and Other Post Employment Benefits shall be as
shown in Atmos' RRM 2013 Application at Workpapers F-2.3 and F-2.3.1, for fiscal year 2013,
appended to this Ordinance as Attaclunent B.
Section 4. Atmos is hereby directed to reimburse the City's costs, as part of the Atmos
Texas Municipalities, of engaging counsel, rate consultants, and other personnel in assisting the
City in its investigation of Atmos' proposed increase in rates.
Section 5. To the extent any Ordinance or Resolution previously adopted by the City
Council is inconsistent with this Ordinance, it is hereby superseded.
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Section 6. 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 5 51.
Section 7. 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 8. This Ordinance shall become effective from and after its passage.
Section 9. A copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Christopher
Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1600, Dallas, Texas 75240 and to Mr. Alfred R. Herrera, Herrera & Boyle,
PLLC, 816 Congress Avenue, Suite 1250, Austin, Texas 78701.
PASSED AND APPROVED this day of October, 2013.
,,,`''WIIW",Thomas Muir, Mayor
ATTEST: 'A 0'.,; ;
P--
Tami Taber, City Secretary
A
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