09-14-08-Resolution-Approving Atmos Energy Change in Tariffs-09/15/2008RESOLUTION #R09-14-08
A RESOLUTION OF THE CITY OF SANGER, TEXAS
APPROVING A CHANGE IN THE TARIFFS OF ATMOS
ENERGY CORPORATION, MID-TEX DIVISION
("ATMOS") AS A RESULT OF A SETTLEMENT
BETWEEN ATMOS AND THE ATMOS TEXAS
MUNICIPALITIES ("ATM"); FINDING THAT 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 ("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 of
a gas utility within the municipality; and
WI REAS, the City has participated in prior cases regarding Atmos as part of a
coalition of cities known as the Atmos Texas Municipalities ("ATM"), including Railroad
Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to
Section 104.301 of GURA, GUD Docket No. 9670 and GUD Docket No. 97620 and
WHEREAS, on February 11, 2008, ATM and Atmos entered into a settlement
agreement which provided for a new mechanism to review changes in rates known as the "Rate
Review Mechanism" or "RRM"; and
WHEREAS, pursuant to the new regulatory mechanism Atmos filed for an increase in
rates of approximately forty-two million dollars ($42 million), to be effective on October 1,
2008; and
WHEREAS, the RRM is a three-year experiment which is aimed at reducing rate case
expenses and encouraging a more collaborative effort at arriving at just and reasonable gas rates;
and
NTEREAS, for over three months the experts representing ATM have been analyzing
data and interviewing Atmos' management; and
VWIMREAS, ATM's experts have concluded that slightly less than half of the amount
requested by Atmos should be put into rates; and
WHEREAS, Atmos has agreed to reduce its requested increase in rates by more than
fifty percent (50%); and
WHEREAS, in connection with this first RRM, the customer charge for residential
customers will be reduced from $10.69 to $7.00, benefitting thousands of fixed income and low -
use customers; and
WHEREAS, in connection with the implementation of this rate request, an energy
conservation program will be instituted to benefit customers of modest means; and
WHEREAS, the Steering Committee of ATM and its lawyers recommend approval of
the attached tariffs, set forth as Attachment A.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SANGER, TEXAS THAT:
Section 1. That the statements set out in the preamble to this resolution are hereby in
all things approved and adopted.
Section 2. The amended tariffs in Attachment A are hereby adopted to become
effective on October 1, 2008.
Section 3. The proof of revenues in Attachment B, the average bill calculations, and
the document entitled "Rate Review Mechanism — lst Year of Effective Period —Allocation of
Settlement Increase by Customer Class" has been relied upon in connection with the adoption of
the amended tariffs.
Section 4. The meeting at which o this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 5 51.
Section 5. This resolution shall become effective from and after its passage with rates
authorized by the Attached Tariffs to be effective in accordance with the terms of the Settlement
Agreement,
Section 6. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Joe T.
Christian, Director of Rates, at Atmos Energy Corporation, 5420 LB J Freeway, Suite 1800,
Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC, 816
Congress Avenue, Suite 1120, Austin, TX 78701.
PASSED AND APPROVED this 1 day of September 2008.
Joe Higgs, Mayor
ATTBS,T:
Rosalie Chavez, City Secretary