OR 2013-1358 Atmos Energy
ORDINANCE NO. 2013-1358
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS, APPROVING A NEGOTIATED
RESOLUTION BETWEEN THE ATMOS CITIES
STEERING COMMITTEE AND ATMOS ENERGY CORP.,
MID-TEX DIVISION REGARDING THE COMPANY’S 2013
ANNUAL RATE REVIEW MECHANISM FILING IN ALL
CITIES EXERCISING ORIGINAL JURISDICTION;
DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT
RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT AND FINDING THE RATES
TO BE SET BY THE ATTACHED TARIFFS TO BE JUST
AND REASONABLE; REQUIRING THE COMPANY TO
REIMBURSE CITIES’ REASONABLE RATEMAKING
EXPENSES; REPEALING CONFLICTING RESOLUTIONS
OR ORDINANCES; DETERMINING THAT THIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH
THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN
EFFECTIVE DATE; PROVIDING A MOST FAVORED
NATIONS CLAUSE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND THE
STEERING COMMITTEE’S LEGAL COUNSEL.
WHEREAS, the City of Coppell, Texas (“City”) is a gas utility customer of Atmos
Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority
with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a
coalition of approximately 164 similarly situated cities served by Atmos Mid-Tex that have
joined together to facilitate the review of and response to natural gas issues affecting rates
charged in the Atmos Mid-Tex service area; and
WHEREAS, pursuant to the terms of the agreement settling the Company’s 2007
Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to
develop a Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review
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process controlled in a three-year experiment by ACSC Cities as a substitute to the current Gas
Reliability Infrastructure Program (“GRIP”) process instituted by the Legislature; and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos
Mid-Tex resolving the Company’s 2007 rate case and authorizing the RRM tariff; and
WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff
process for an additional five years; and
WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City
for an additional five years; and
WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities’
reasonable expenses associated with RRM applications; and
WHEREAS, on or about July 15, 2013, the Company filed with the City its first annual
RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates by $22.7
million; and
WHEREAS, ACSC coordinated its review of Atmos Mid-Tex’s RRM filing through its
Executive Committee, assisted by ACSC attorneys and consultants, to resolve issues identified
by ACSC in the Company’s RRM filing; and
WHEREAS, the ACSC Executive Committee, as well as ACSC’s counsel and
consultants, recommend that ACSC Cities approve the attached rate tariffs (“Attachment A” to
this Ordinance), which will increase the Company’s revenues by $16.6 million; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
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Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds the existing rates for natural gas service provided
by Atmos Mid-Tex are unreasonable and new tariffs which are attached hereto and incorporated
herein as Attachment A, are just and reasonable and are hereby adopted.
Section 3. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of
the ACSC Cities in processing the Company’s RRM application.
Section 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
Section 7. That if ACSC determines any rates, revenues, terms and conditions, or
benefits resulting from a Final Order or subsequent negotiated settlement approved in any
proceeding addressing the issues raised in Atmos’ 2013 RRM filing would be more beneficial to
the ACSC Cities than the terms of the attached tariffs, then the more favorable rates, revenues,
terms and conditions, or benefits shall additionally and automatically accrue to the ACSC Cities,
including the City, without the need for City to take any further action. If this automatic
adjustment occurs, Atmos Mid-Tex shall promptly thereafter file with the City an amended tariff
documenting the adjustment to rates.
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Section 8. That this Ordinance shall become effective from and after its passage with
rates authorized by attached tariffs to be effective for bills rendered on or after November 1,
2013.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris
Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at
Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this 2:2— • day of 0 _�, :__ , 2013.
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Kar•n Selbo Hunt, Mayor
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Christel Pettinos, ity Secretary
APPROV- ■ AS TO F•RM:
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City Attorney
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