2015-025 - Approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division...

Home Browse Search

RESOLUTION NO. 2015-025 AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE ( "ACSC ") AND ATMOS ENERGY CORP., MID -TEX DIVISION REGARDING THE COMPANY'S 2014 AND 2015 RATE REVIEW MECHANISM FILINGS; APPROVING A SETTLEMENT AGREEMENT WITH ATTACHED RATE TARIFFS AND PROOF OF REVENUES; 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 SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; 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 Paris, 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; 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 new 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 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 initial RRM Tariff was in effect for four (4) years; and WHEREAS, ACSC Cities and Atmos Mid -Tex entered into another settlement agreement and revised the RRM Tariff; and WHEREAS, ACSC Cities and Atmos Mid -Tex compromised and reached agreements on the amount of the rate increases to be in effect for the RRM Tariff filings for 2012 and 2013; and WHEREAS, ACSC Cities and Atmos Mid -Tex were unable to reach an agreement on the 2014 RRM Tariff filing, resulting in the ACSC Cities' rejection of the 2014 RRM filing; and 4764616.1 1