06-09-18-Resolution-Suspending Atmos Gas Rate Increase for 90 days-06/18/2018RESOLUTION NO. UO-U94N
RESOLUTION BY THE CITY OF SANGER, TEXAS ("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING MADE ON
ABOUT ON JUNE 1, 2018 BY ATMOS ENERGY FOR ITS
MIDTEX DIVISION; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, Atmos Energy ("Atmos" or "Company") filed a Statement of Intent
with the City on or about June 1, 2018, to increase its annual revenue by approximately
$4.5 million in the cities known as Atmos Texas Municipalities ("ATM"), which equates
to an increase in annual revenue of approximately 8.0 percent, and is the equivalent of an
increase of about $46.0 million on a system -wide basis; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory
Act ("GURA") and under Chapter 104, Al nq nni et seq. of GURA has exclusive original
jurisdiction over Atmos's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating Atmos's rate request and its changes in tariffs it is
prudent to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, the City, in matters regarding applications by Atmos to change
rates, has in the past joined with other local regulatory authorities to form an alliance of
cities known as Atmos Texas Municipalities ("ATM"), and hereby continues its
participation in ATM; and
WHEREAS, Atmos's rate request consists of a voluminous amount of
information including Atmos's rate-ng package, exhibits, schedules, and workpapers;
and
Atmos NlidTex 2018 Statement oflntent
WHEREAS, Atmos'S rate application is the Company's first general rate case
since about 2012, and follows annual increases approved under the now -expired tariff
known as the "Rate Review Mechanism" ("RRM"); and
WHEREAS, Atmos proposed July 6, 2018, as the effective date for its requested
increase in rates; and
WHEREAS, it is not reasonably possible for the City to complete its review of
Atmos's filing by July 6, 2018; and
WHEREAS, the City will need an adequate amount of time to review and
evaluate Atmos's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to Atmos's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of Atmos's application to increase rates; and
WHEREAS, if Atmos submits a corresponding application with the Railroad
Commission of Texas or appeals the City's action to the Railroad Commission of Texas,
the decision of the Railroad Commission of Texas will have a direct impact on the City
and its citizens who are customers of Atmos, and in order for the City's participation to
be meaningful it is important that the City intervene in any such proceedings at the
Railroad Commission of Texas related to Atmos's application to increase rates.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SANGER9 TEXAS THAT:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. Atmos's proposed effective date for its proposed increase in rates is
hereby SUSPENDED for ninety days beyond July 6, 2018.
Atmos MidTex 2018 Statement of Intent
Section I The statutory suspension period may be further extended if Atmos does
not provide timely and meaningful, and proper public notice of its request to increase
rates, if its rate -filing package is materially deficient, or by agreement.
Section 4. The City shall participate in a coalition of cities known as the Atmos
Texas Municipalities ("ATM"), and authorizes intervention in proceedings related to
Atmos's Statement of Intent before the Railroad Commission of Texas and related
proceedings in courts of law; and
Section 5. The City hereby orders Atmos to reimburse the City's rate case expenses
consistent with the Gas Utility Regulatory Act and that Atmos shall do so on a monthly
basis and within 30 days after submission of the City's invoices for the City's reasonable
costs associated with the City's activities related to this rate review or related to
proceedings involving Atmos before the City, the Railroad Commission of Texas, or any
court of law.
Section 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving Atmos before the City, the Railroad
Commission of Texas, or any court of law, and to retain such experts as may be
reasonably necessary for review of Atmos's rate application subject to approval by the
steering committee of the ATM.
Section 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices
to Atmos for reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law &Associates, PLLC, 816 Congress Ave., SuiteAustin, Texas 78701, and a
courtesy copy to Atmos's local representative.
Atmos MidTex 2018 Statement oflntent
Section 9. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section 10. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 18t�' day of June, 2018.
Vffi
SA ti'
•tt-�'
tot
ice'''`` •`. A kN
11111141111110�,e
Atmos MidTex 2018 Statement oflntent