RE 2024-0910.1 Atmos RRM1
RESOLUTION NO. 2024-0910.1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COPPELL, TEXAS, APPROVING A NEGOTIATED SETTLEMENT
BETWEEN THE ATMOS CITIES STEERING COMMITTEE
(“ACSC”) AND ATMOS ENERGY CORP., MID-TEX DIVISION
REGARDING THE COMPANY’S 2024 RATE REVIEW
MECHANISM FILING; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE
ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED
SETTLEMENT; FINDING THE RATES TO BE SET BY THE
ATTACHED SETTLEMENT TARIFFS TO BE JUST AND
REASONABLE AND IN THE PUBLIC INTEREST; APPROVING
AN ATTACHMENT ESTABLISHING A BENCHMARK FOR
PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING
THE COMPANY TO REIMBURSE ACSC’S REASONABLE
RATEMAKING EXPENSES; DETERMINING THAT THIS
RESOLUTION WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE
DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO
THE COMPANY AND THE ACSC’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, charges, and services of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a
coalition of similarly-situated cities served by Atmos Mid-Tex (“ACSC Cities”) 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, ACSC and the Company worked collaboratively to develop a Rate Review
Mechanism (“RRM”) tariff that allows for an expedited rate review process by ACSC Cities as a
substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the
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Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of
serving the Atmos Mid-Tex Division; and
WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in
2018; and
WHEREAS, on about April 1, 2024, Atmos Mid-Tex filed its 2024 RRM rate request with
ACSC Cities based on a test year ending December 31, 2023; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2024 RRM filing
through its Executive Committee, assisted by ACSC’s attorneys and consultants, to resolve issues
identified in the Company’s RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC’s counsel and consultants,
recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $164.7
million on a system-wide basis with an Effective Date of October 1, 2024; and
WHEREAS, ACSC agrees that Atmos’ plant-in-service is reasonable; and
WHEREAS, with the exception of approved plant-in-service, ACSC is not foreclosed from
future reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent
with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Attachment 2); and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’s reasonable expenses
associated with RRM applications.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COPPELL, TEXAS:
Section 1. That the findings set forth in this Resolution are hereby in all things approved.
Section 2. That, without prejudice to future litigation of any issue identified by ACSC,
the City Council finds that the settled amount of an increase in revenues of $164.7 million on a
system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the
rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from
Atmos Mid-Tex’s 2024 RRM filing, is in the public interest, and is consistent with the City’s
authority under Section 103.001 of the Texas Utilities Code.
Section 3. That despite finding Atmos Mid-Tex’s plant-in-service to be reasonable, ACSC
is not foreclosed in future cases from evaluating the reasonableness of costs associated with
incidents involving leaks of natural gas.
Section 4. That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just
and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $164.7
million on a system-wide basis, over the amount allowed under currently approved rates. Such
tariffs are hereby adopted.
Section 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex’s next RRM filing shall be as set forth on Attachment 2, attached hereto and
incorporated herein.
Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Company’s 2024 RRM filing.
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Section 7. That to the extent any resolution or ordinance previously adopted by the Council
is inconsistent with this Resolution, it is hereby repealed.
Section 8. 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.
Section 9. That if any one or more sections or clauses of this Resolution is adjudged 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 10. That consistent with the City Ordinance that established the RRM process,
this Resolution shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after October 1, 2024.
Section 11. That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato,
General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
COPPELL , TEXAS , BY A VOTE OF 1_ TO _ff_, ON THIS THE 10 th DAY OF SEPTEMBER
2024.
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Wes Mays , Mayor F
ATTEST:
2557 /38 /8872169 5