HomeMy WebLinkAboutRES 102213-N - Change Rates ATMOSRESOLUTION 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.
Worl-c"apers F-2.3 and F-2.3.j
IMF
Resolution Number: l� Q 0 a
Description: Atmos Adopt Rate Schedule - Rate Review Mechanism (RRM)
Date Approved: October 22, 2013
Page 5 of 5
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