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HomeMy WebLinkAboutRES 102213-NRESOLUTION NO. O i AN RESOLUTION BY THE CITY OF GEORGETOWN, TEXAS ( "CITY "), APPROVING A CHANGE IN THE RATES OF ATMOS ENERGY CORPORATION, MID -TEX DIVISION ( "ATMOS ") AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES ( "ATM ") UNDER THE RATE REVIEW MECHANISM; FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; DIRECTING ATMOS ENERGY TO REIMBURSE THE CITY'S RATE -CASE EXPENSES; 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 Georgetown, Texas ("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's ( "Atmos ") rates, operations, and service of a gas utility within the municipality; and WHEREAS, Section 103.021 of GURA authorizes the City to obtain information from Atmos as necessary to make a determination of the basis for the Atmos' proposed increase in rates; and WHEREAS, Section 103.022 of GURA provides that Atmos shall reimburse the City its reasonable cost of engaging personnel to assist it in reviewing Atmos' application; 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, the Rate Review Mechanism ( "RRM ") for 2013 that Atmos filed with the City Secretary on or around July 15, 2013 proposed a system -wide increase of $22.7 million; and WHEREAS, experts representing ATM have analyzed data furnished by Atmos and have interviewed Atmos' management regarding the RRM; and Resolution Number: [ D D D I O —N Description: Atmos Adopt Rate Schedule — Rate Review Mechanism (RRM) Date Approved: October 22, 2013 Page I of 5 WHEREAS, it is necessary to establish the benchmark cost for Pensions and Other Post- Employment Benefits (Pension /OPEB); and WHEREAS, on September 26, 2013, ATM and Atmos entered into a settlement agreement which would provide for a net increase of $16.6 million. This will cause the rates to increase by $0.74 per month for a typical residential customer; and WHEREAS, the settlement agreement's net decrease to Atmos' previously filed request would be approximately 27% less than such filed RRM; and WHEREAS, the Steering Committee of ATM and its counsel recommend approval of the attached tariffs, set forth as Attachment A. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS THAT: Section 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this resolution implements the Vision Statement of the City of Georgetown 2030 Comprehensive Plan. Section 2. The findings set forth in this Resolution are hereby in all things approved. Section 3. The amended tariffs in Attachment A are hereby adopted to become effective on November 1, 2013. Section 4. The benchmark for Pension and Other Post Employment Benefits shall be as shown in Atmos' RRM 2013 Application at Workpapers F -2.3 and F- 2.3.1, for fiscal year 2013, appended to this Resolution as Attachment B. Section 5. Atmos is hereby directed to reimburse the City's costs, as part of the Atmos Texas Municipalities, of engaging counsel, rate consultants, and other personnel in assisting the City in its investigation of Atmos' proposed increase in rates. Section 6. To the extent any Resolution or Ordinance previously adopted by the City Council is inconsistent with this Resolution, it is hereby superseded. Resolution Number: l op aj — ``^ Description: Atmos Adopt Rate Schedule - Rate Review Mechanism (RRM) Date Approved: October 22, 2013 Page 2 of 5 Section 7. 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 8. 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 9. This Resolution shall become effective from and after its passage. Section 10. 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 c� a day of O C-�6(2,✓— 12013. APPROVED: K George WGarver, Mayor ATTEST: �4m - gp2ap Jes is Brettle, City Secretary APPROVED AS T FORM: Bridget Chaps ian,(;:#4ing City Attorney Resolution Number: t .. Description: Atmos Adopt Rate Schedule — Rate Review Mechanism (RRM) Date Approved: October 22, 2013 Page 3 of 5 Rate Schedule: R — Residential Sales Rate Schedule: C — Commercial Sales Rate Schedule: I — Industrial Sales Rate Schedule: T — Transportation Sales Rate Schedule: NA NA — Weather Normalization Adjustment Resolution Number: 1OQaI03-0 Description: Atmos Adopt Rate Schedule — Rate Review Mechanism (RRM) Date Approved: October 22, 2013 Page 4 of 5 WNA — WEATHER NORMALIZATION D ADJUSTMENT ALL CUSTOMERS IN THE MID-TEX IVISION EXCEPT THE CITY OF � =APPLICABLE DALLAS AND UNINCORPORATED AREAS B E ills Rendered on or after 1110112013 The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: ADD billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA = WNAFi x qij Where q1, is the relevant sales quantity for the jth customer in ith rate schedule. (HSFi X (NDD-ADD)) WNAFi Ri (BLi + (HSFi x ADD) Where i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classification. HSFi = heat sensitive factor for the ith schedule or classification divided by the average bill count in that class NDD billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA = WNAFi x qij Where q1, is the relevant sales quantity for the jth customer in ith rate schedule. MID-TEX DIVISION Base Use/Heat Use Factors Weather Normalization Adiustment (WN6)_Begort Commercial Residential Base use Base use Heat use Weather Station Ccf Ccf1HDD Abilene 9.97 0.1318 Austin 11.05 01262 Dallas 13.13 0.1832 Waco 9.78 0.1262 Wichita 10,99 0.1297 Falls Weather Normalization Adiustment (WN6)_Begort Commercial Base use Heat use Ccf Ccf/HDD 96.50 0.5659 189.59 0.7195 171.84 0.8797 117.60 0.5774 107.70 0.5041 On or before June I of each year, the company posts on its website at atmosenergy.com/mtx-wna, in Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated its WNAs factor during the preceding winter season. Additionally, on or before June I of each year, the company files one hard copy and a Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division. 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