03-01-20-Resolution-Atmos Energy Rate Increase-03/16/2020RESOLUTION NO. 03-01-20
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 EFFECTIVE DATE.
WHEREAS, on or about February 28, 2020 Atmos Energy Corporation — 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
$21.74 per
$4.71 per
$26.45 per
Rate R —
customer per
customer per
customer per
Residential Sales
month
month
month
$4.71
Rate C —
$52.26 per
$14.54 per
$66.80 per
Commercial
customer per
customer per
customer per
Sales
month
month
month
$14.54
Rate I
(Industrial) &
$939.80 per
$261.93 per
$1,201.73 per
Rate T
customer per
customer per
customer per
(Transportation)
month
month
month
$261.93
WHEREAS, Atmos Energy's application, if approved by the Railroad Cormnission, will
result in a systemwide increase in Atmos Energy's revenue of about $113.06 million, of which
ATM's portion is about $11.15 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 forty-
five days, so that the City can assure itself that the data and calculations in Atmos Energy's rate
application are correctly done and are in conformity with section 104.301 of the as Utility
Regulatory Act; and
WHEREAS, the effective date proposed by Atmos Energy is April 28, 2020 but a
suspension by the City will mean that the rate increase cannot go into effect prior to June 125 2020.
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 Atinos 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 5. To the extent Atmos Energy's application to increase rates under section
104.301 of the Gas Utility Regulatory Act ("(jURA") 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 by law.
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
2of3
1862, Dallas, Texas 75240; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400
Medical Pkwy., Austin, Texas 78756.
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 APPRO
ATTEST:
Y
/n�
1 Price
day of March, 2020.
OR:
Thomas E.. Muir