05-03-15-Resolution-Approving Atmos Energy Rate Change-05/18/2015RESOLUTION ##RU3-03-15
A RESOLUTION 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;
FINDING THAT THE MEETING COMPLIED WITH THE
OPEN MEETINGS ACT; DECLARING AN EFFECTIVE
DATE; AND REQUIRING DELIVERY OF THE
RESOLUTION 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 ("Atmos") rates, operations,
and service of a gas utility within the municipality; and
WHEREAS, the City has participated in prior cases regarding Atmos as part of a
coalition of cities known as the Atmos Texas Municipalities ("ATM"); and
WHEREAS, pursuant to the Rate Review Mechanism ("RRM") for 2015 filed with the
City on or around February 27, 2015 for a proposed system -wide increase of $28.7 million; and
WHEREAS, experts representing ATM have been analyzing data furnished by Atmos
and interviewing Atmos' management regarding the RRM; and
WHEREAS, in May 2015, ATM and Atmos entered into a Settlement Agreement which
resolved the 2014 RRM and 2015 RRM; and
WHEREAS, the settlement agreement permits Atmos to implement an increase of
$21.87 million increase over the current interim rates Atmos is charging, which when combined
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with the increase under the 2014 RRM produces an increase of $65.7 million increase over
Atmos' 2013 revenues; and
WHEREAS, as part %J the settlement agreement, Atmos will dismiss its pending appeal
at the Railroad Commission of Texas, Atmos will not seek to recover rate case expenses over
and above the agreed rate increase; and
WHEREAS, the Steering Committee of ATM and its counsel recommend approval of
the attached tariffs, set forth as Attachment A, along with the proof of revenues set forth as
Attachment B, and Attachment C, setting forth the beginning balance for purposes of
determining pension and other post -employment benefits to be recovered in the next RRM filing.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SANGER, TEXAS THAT:
Section 1. The findings set forth in this .Resolution are hereby in all things approved.
Section 2. The amended tariffs in Attachment A are hereby adopted to become effective
on June 1, 2015.
Section 3. To the extent any Resolution previously adopted by the City Council is
inconsistent with this Resolution, it is hereby superseded.
Section 4. The meeting at which this Resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Goveininent Code,
Chapter 551.
Section 5. If any one or more sections or clauses of this Resolution is judged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provisions of this Resolution and the remaining provisions of the Resolution shall be interpreted
as if the offending section or clause never existed.
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Section 6. This Resolution shall become effective from and after its passage.
Section 7. A copy of this Resolution 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 j day of , 2015if
ATTEST:
City Secretary
Mayor
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