HomeMy WebLinkAboutRES 021417-X - Atmos Intervention RateRESOLUTION NO.
RESOLUTION BY THE CITY OF GEORGETOWN, TEXAS;
AUTHORIZING PARTICIPATION IN A COALITION OF
SIMILARLY SITUATED CITIES IN CONNECTION WITH THE
STATEMENT OF INTENT TO CHANGE RATE CGS AND RATE
PT OF ATMOS PIPELINE—TEXAS FILED ON OR ABOUT
JANUARY 6, 2017; AUTHORIZING PARTICIPATION IN
RELATED RATE PROCEEDINGS; AUTHORIZING THE
RETENTION OF SPECIAL COUNSEL; REQUIRING THE
REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES;
FINDING THAT THE MEETING COMPLIES WITH THE OPEN
MEETINGS ACT; AND MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT
WHEREAS, Atmos Pipeline—Texas ("APT") filed a Statement of Intent with
the Railroad Commission of Texas on or about January 6, 2017 to increase Rate CGS and
Rate PT; and
WHEREAS, APT plans to increase its revenue requirement by approximately
$72.9 million, representing an increase of approximately 17.38%; and
WHEREAS, the impact on customers, on a rate -schedule basis, is as follows:
Capacity Charges
The customer charge in a customer's bill is the "Maximum Daily Quantity" ("MD(X"), multiplied by the
capacity charges shown in the table above.
RESOLUTION NUMBER: Oal� �y1"%� Page 1 of
DESCRIPTION: ATMOS— Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017
Current
Proposed
Capacity
Capacity
Charge per
Charge per
MMBtu of
MMBtu of
Percentage
Rate Schedule
MDQ
MDQ
Difference
Increase
Rate CGS ("City
Gate Service") —
MidTex
$9.1275
$11.24146
$2.11396
23%
Rate CGS — Other
$9.1275
$11.24146
$2.11396
23%
Rate PT ("Pipeline
Transportation")
$4.8331
$7.70001
$2.86691
59%
The customer charge in a customer's bill is the "Maximum Daily Quantity" ("MD(X"), multiplied by the
capacity charges shown in the table above.
RESOLUTION NUMBER: Oal� �y1"%� Page 1 of
DESCRIPTION: ATMOS— Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017
Usage Charge
WHEREAS, APT seeks a Return on Equity (ROE) of 13.5%; a capital structure
weighted toward equity — 59.83% Equity and 40.17% Debt; and
WHEREAS, APT's rate request consists of a voluminous amount of information
including APT's rate -filing package, exhibits, schedules, and workpapers; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating APT's rate request and its changes in tariffs it is
prudent to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, the City, in matters regarding applications by APT to change rates,
has in the past joined with other local regulatory authorities to form the Atmos Texas
Municipalities ("ATM") and hereby continues its participation in ATM; and
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of APT's application to increase rates; and
WHEREAS, APT filed a statement of intent to increase rates with the Railroad
Commission of Texas, and therefore the decision of the Railroad Commission of Texas
will have an impact on the rates paid by the City and its citizens who are customers of
RESOLUTION NUMBER: 0) Y 1 'lX Page 2 of 4
DESCRIPTION: ATMOS— Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017
Current Usage
Proposed
Charge per
Usage Charge
Percentage
Rate Schedule
NIMBtu
per NINIBtu
Difference
Increase
Rate CGS —
Mid -Tex
$0.0276
$0.02785
$0.00025
1%
Rate CGS —
Other
$0.0276
$0.02785
$0.00025
1%
Rate PT
$0.0163
$0.01325
($0.00305)
-19%
WHEREAS, APT seeks a Return on Equity (ROE) of 13.5%; a capital structure
weighted toward equity — 59.83% Equity and 40.17% Debt; and
WHEREAS, APT's rate request consists of a voluminous amount of information
including APT's rate -filing package, exhibits, schedules, and workpapers; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating APT's rate request and its changes in tariffs it is
prudent to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, the City, in matters regarding applications by APT to change rates,
has in the past joined with other local regulatory authorities to form the Atmos Texas
Municipalities ("ATM") and hereby continues its participation in ATM; and
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of APT's application to increase rates; and
WHEREAS, APT filed a statement of intent to increase rates with the Railroad
Commission of Texas, and therefore the decision of the Railroad Commission of Texas
will have an impact on the rates paid by the City and its citizens who are customers of
RESOLUTION NUMBER: 0) Y 1 'lX Page 2 of 4
DESCRIPTION: ATMOS— Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017
APT, and in order for the City's participation to be meaningful, it is important that the
City promptly intervene in such proceedings at the Railroad Commission of Texas.
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 City authorizes intervention in proceedings related to APT's
Statement of Intent before the Railroad Commission of Texas and related proceedings,
including in courts of law, as part of the coalition of cities known as the Atmos Texas
Municipalities ("ATM").
Section 3. The City hereby orders APT to reimburse the City's rate case expenses as
provided in the Gas Utility Regulatory Act and that APT shall do so on a monthly basis
and within 30 days after submission of the City's invoices for the City's reasonable costs
associated with the City's activities related to this rate review or to related proceedings
involving APT before the Railroad Commission of Texas or any court of law.
Section 4. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with
regard to rate proceedings involving APT before the Railroad Commission of Texas or
any court of law and to retain such experts as may be reasonably necessary for review of
APT's rate application subject to approval by the City.
RESOLUTION NUMBER: O ► Page 3 of 4
DESCRIPTION: ATMOS—Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017
Section 5. The City, or its designee member city in the Atmos Texas Municipalities,
shall review the invoices of the lawyers and rate experts for reasonableness before
submitting the invoices to APT for reimbursement.
Section 6. A copy of this resolution shall be sent to APT, care of Mr. Charles R.
Yarbrough, II, 5420 LBJ Freeway, Suite 1557, Dallas, Texas, 75240; and to Mr. Alfred
R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas
78701.
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. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this �� day ofQrUO-f 2017.
Dale Ross: Mayor
ATTEST:
5
Shelley Nowlin • . y Secretary
APPR D AS TO
Charlie McNabb: City Attorney
RESOLUTION NUMBER: La z-)� Page 4 of 4
DESCRIPTION: ATMOS— Intervention Resolution Rate Case
DATE APPROVED: 02-14-2017