08-19-11-Resolution-Approving a Settlement with Atmos Energy-08/15/2011RESOLUTION 08-19-11
OFAPPROVING
SETTLEMENT BETWEEN ATMOS ENERGY CORP 9S
MUNICIPALITIES ("ATM") RESULTING IN NO CHANGE
IN BASE RATES AND APPROVING TARIFFS WHICH
REFLECT COSTS RELATED TO THE STEEL PIPE
REPLACEMENT PROGRAM, FINDING THE RATES SET
BY THE ATTACHED TARIFFS TO BE JUST AND
REQUIRING DELIVERY OF THE
RESOLUTION TO THE COMPANYAND LEGAL
COUN EL;.DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS APPROVED
COMPLIED WITH THE OPEN MEETINGS ACT; MAKING
SUBJECT;OTHER FINDINGS AND PROVISIONS RELATED TO THE
DECLARING AN DATE.
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 Atmos
Energy Corporation —Mid-Tex Division ("Atmos") rates, operations, and services as 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, on or about April 1, 2010 Atmos filed for an increase in rates,
pursuant to the Rate Review Mechanism ("RPM") of approximately $15.6 million; which
represents approximately a $9 million base rate increase and an approximate $6.6 million for the
steel pipe replacement program; and,
WHEREAS, after months of investigation by ATM's rate experts and weeks of
negotiations by ATM'S negotiation team a settlement was arrived at which provides: (1) the steel
service line replacement program for this last year be funded through a monthly increase of the
residential customer charge of twenty-nine cents and an increase in the commercial customer
charge of a dollar and twenty-two cents, (2) there will be no increase in base rates; and (J)
Atmos and representatives of ATM will begin meeting in mid -August to begin working on rate -
related issues, especially those that are difficult to resolve in the time period called for by the
RRM process.
WH�&�AS, the Executive Committee of ATM and its lawyers recormnend that
the Council approve the attached tariffs which are consistent with the understandings between
Atmos and the ATM Executive Committee.
Section 1. That the findings set out in the preamble. to this resolution are hereby
in all things approved and adopted..
Section 2. The rates contained in the attached tariffs are just and reasonable and
are hereby approved subject to a prudence review of the steel pipe replacement expenditures in
the next general rate proceeding.
Section 3. That a copy of this Resolution shall be sent to Mr. David Park, Vice
President for Rates and Regulation, Mid -Tex Division, Atmos Energy Cozporation, 5420 LBJ
Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel for ATM, at Herrera &
Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701.
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 Govei7nnent
Code, Chapter 551.
Section 5. That this resolution shall become effective immediately from and after
its passage.
PASSED and APPROVED this day of August, 2011.
0,0 111111(Bt161///fa/ G F--_
' -Thomas Muir, Mayor
ATTEST:
Tami Taber, City Secretary