06-10-13-Resolution-Approving Atmos Energy Rate Review Mechanism-06/03/2013RESOLUTION NO. R06-10-13
A RESOLUTION BY THE CITY OF BANGER, TEXAS
("CITY"), APPROVING AND ADOPTING RATE
SCHEDULE "RRM —RATE REVIEW MECHANISM" FOR
ATMOS ENERGY CORPORATION, MID-TEX DIVISION
TO BE IN FORCE IN THE CITY FOR A PERIOD OF TIME
AS SPECIFIED IN THE RATE SCHEDULE; ADOPTING A
SAVINGS CLAUSE; DETERMINING THAT THIS
RESOLUTION WAS PASSED IN ACCORDANCE WITH
THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; DECLARING AN EFFECTIVE DATE; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY.
WHEREAS, the City of Sanger, Texas ("City") is a gas utility customer of Atmos
Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "the Company"), and a regulatory
authority with an interest in the rates and charges of Atmos Mid -Tex; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over the rates,
operations and services of Atmos Mid -Tex within the municipality; and
WHEREAS, the City as a member of the coalition of cities served by Atmos Mid -Tex
known as the Atmos Texas Municipalities ("ATM"); and
WHEREAS, the City previously approved a Rate Review Mechanism ("RRM") Tariff
that allows for an alternative, negotiated rate review process to facilitate annual changes in gas
utility rates reflective of Atmos Mid-Tex's annual system -wide cost of providing service in lieu
of an interim rate adjustment though alegislatively-constructed Gas Reliability Infrastructure
Program ("GRIP"); and
WHEREAS, the RRM process permits City review of requested rate changes and
provides for a review of Atmos Mid-Tex's total cost of service on an annual basis; and
3562140.1
1
WHEREAS, the initial RRM tariff expired in 2011; and
WHEREAS, ATM, through its Special Counsel in conjunction with experts retained on
behalf of ATM, negotiated with Atmos Mid -Tex to develop a new RRM process that would
annually adjust rates in lieu of rate adjustments through annual GRIP filings or full rate cases at
the Raihoad Commission; and
WHEREAS, the renewal of the RRM process may avoid costly rate case litigation; and
WHEREAS, ATM's legal counsel reconunend ATM member cities approve the
negotiated RRM; and
WHEREAS, the attached Rate Schedule "RRM —Rate Review Mechanism" ("RI2M
Tariff') provides for a reasonable rate review process that is to be utilized in lieu of GRIP
filings; and
WHEREAS, the attached RRM Tariff as a whole is in the public interest;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANGER, TEXAS THAT:
Section 1. That the findings set forth in this Resolution are hereby in all things approved.
Section 2. That the City Council finds that the IZRM Tariff, which is attached hereto and
incorporateA herein as "Attachment A," is reasonable and in the public interest, and from the
effective date of this Resolution is in force and effect in the City.
Section 3. That to the extent any resolution or Resolution previously adopted by the City
Council is inconsistent with this Resolution, it is hereby repealed.
Section 4. That 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.
3562140.1 2
Section 5. That 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.
Section 6. That this Resolution shall become effective from and after its passage.
Section 7. That 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 3rd day of June, 2013.
1si<<i i tr Thomas E. Muir
f ,
i 0 r 6- /q , 'Mayor
,,
<
ATTEST: -'be
Tami Taber
City Secretary ,' ✓d, %c, \6,t°
t11io11ko",
3562140.1 3
3562140.1 4