2018-008 Approving a Tariff-Annual Rate Review-Atmos Energy CorpAN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL
RATE REVIEW MECHANISM ("RRM") AS A SUBSTITUTION FOR
THE ANNUAL INTERIM RATE ADJUSTMENT PROCESS DEFINED BY
SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS
NEGOTIATED BETWEEN ATMOS ENERGY CORP., MID-TEX
DIVISION ("ATMOS MID-'TEX" OR "COMPANY"') AND THE
STEERING COMMITTEE OF' CITIES SERVED BY ATMOS;
REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; ADOPTING A SA'V'INGS CLAUSE;
DETERMINING THAT THIS ORDINANCE WAS PASSED IN
ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN
MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY
AND LEGAL COUNSEL FOR THE STEERING COMMITTEE.
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 Mid -Tex; and
WHEREAS, the City and similarly -situated Mid -Tex municipalities created the
Steering Committee of Cities Served by Atmos to efficiently address all rate and service
matters associated with delivery of natural gas; and
WHEREAS, the Steering Committee formed an Executive Committee to direct legal
counsel and to recommend certain specific actions to all aligned Mid -Tex Cities through
resolution or ordinance; and
WHEREAS, pursuant to the terms of a November 2007 agreement between the
Steering Committee and Atmos Mid -Tex that settled the Company's interim rate filing
under Section 104.301 of the Texas utilities Code (a "GRIP" rate case), the Steering
Committee and the Company collaboratively developed a Rate Review Mechanism ("RRM"')
Tariff", ultimately authorised by the City in 200'8, that allows for an expedited rate review
process as a substitute for the GRIP process; and
WHEREAS, the City has kept some form of a RRM Tariff in place until 2017.when it
adopted an ordinance approving an RRM Tariff' filing settlement and specifically calling for
termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff
following the Railroad Commission's decision in a then -pending Atmos Texas Pipeline case
(GUD No. 10580)'; and
WHEREAS, the Steering, Committee's Executive Committee has recently approved a
settlement with the Company on the attached RRM Tariff that contains certain notable
improvements, from a consumer perspective, over the prior RRM Tariff, including a
reduced rate of return on equity, acceptance of certain expense adjustments made by the
Railroad Commission in the Order in GUD No. 10580, and the addition of' two months to the
time for processing a RRM Tariff application; and
WHEREAS, the RRM Tariff contemplates reimbursement of Cities' reasonable
expenses associated with RRM Tariff applications; and
WHEREAS, the Steering Committee's Executive Committee recommends that all
Steering Committee member cities adopt this ordinance and the attached RRM Tariff,! and
WHEREAS, the attached RRM Tariff is just, reasonable and in the, public interest,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 00
PARIS, TEXAS.
Section 1. That the findings set forth in this Ordinance are hereby in all things
approved.
Section 2. That the attached RRM Tariff re-establishing a form of Rate Review
Mechanism is just and reasonable and in the public interest, and is hereby adopted.
Section 3. That Atmos Mid -Tex shall reimburse the Cities' reasonable expenses
associated with adoption of this Ordinance and the, attached RRM Tariff and in processing
future RRM Tariff applications filed pursuant to the attached tariff.
Section 4. That to the extent any resolution or ordinance previously adopted by the
City is inconsistent with this Ordinance, it is hereby repealed.
Section S. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 6. That if any one or more sections or clauses of this Ordinance is adjudged
to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the
remaining provisions of this Ordinance , and the remaining provisions sions of this Ordinance
shall be interpreted as if the offending section or clause never existed.
Section 7. That this Ordinance shall become effective from and after its passage,
Section 8. That a copy of this Ordinance shall be, sent to Atmos Mid -Tex, care of
Chris Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation,
Mid -Tex Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay,
General Counsel to Mid -Tex Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701,,
2
PASSED AND APPROVED this 12th day ofMarch, 2018,
StevV' e6fford, D., Maywor
ATTEST: co
%
S,
ice Ellis, City Clerk
Stfiahie H. Harris, City Attorney
ATMOIS ENERGY CORPORATION
MI -T DIVISION
.......... . . . ..... . .... . . . . .. . . . .......... . .. . . . .............
RATE SCHEDULE: RR M — Rate Review Mechanism
APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDIENTIIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
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EFFECTIVE DATE: Bill's Rendered on and after 04/0112018
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FFCE 2� ........ ..... . . ..... ...........
consistent with the rate making treatments approved in the Final Order.
Incentive compenisatioin (Management Incentive Plan, Variable, Pay Plan arf*
Long Term Incentive Plan) related to Atmos' Shared Services Unilit will �&-,
applied consistent with treatment approved in GUID 10580, Additionally, O&M
adjustments will be incorporated and appliedas modified' by a final order, noll
subject to appeal, issued by the Railroad Commission of Texas in subsequenit
rate cases involving; the Atmos Mid -Tex or West Texas divisionis. Known and
measurable adjustments shall be led to those changes that have occurred
prior to the Filing Date. 01I may be, adjusted for atypical and non-recurring
items. Shar-www rs shall be recal�culated each year
based on the latest component factors uised during the Test Period, but the
methodology used will be that appIroved in the Final Order in GUD 10580.
DEP = depreciation expense calculated at depreciation rates approved by the Finial
Order. Additionally, if depreciation rates are approved in a subsequent final
oIrder, not subject to appeal, issued by the Railroad Commission of Texas for
thie d -Tex division those rates, would be Www w- for subsequent RRM;
filings.
ATMOS ENERGY CORPORATION
MID -TE X DIVISION
RATE SCHEDULE: RRM - Rate Revi'ew Mechanism
APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED, ISI' EXHIBIT A TO
THIS RATE SCHEDULE
. ....... . . . . . . . . . . .. . .... . .............. ----- -------
EFFECTIVE DATE: Bills Rendered oin arra after 04/011/2018 3
...m.
and other postemployment benefits recovered in rates.
TAX = income tax and taxes other than income tax from the Test Period' adjuisted for
known and measurable changes occurring after the Test Period and before
the Filing Date, and prepared consistent with the rate making treatments
approved ini, the Final Order. Atmos Energy shall comprehensively account
for, including establishing a regulatory liability to account for, any statutory
change in tax expense that is applicable to months during the Test Period in
the calculation to ensure recovery of tax expense under new andold income
tax rates.
CD - interest on customer deposits.
0=1
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: RRM — Rate Review Mechanisirin
APPLICABLE TO. ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
.. . ... ........ . .......... - ... . ....... . - - ----
EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 4
. ... . ...... .......... . ... .....
A sworn statement shall be filed by an Officer of the, Company affirming that the filed
schedules, are in compliance with the provisions of this Rate Review Mechanism aind
are true and correct to thie we of hiis/her knowledge, information, and belief. No
testimony shall be filed', but a brief narrative expilanation, shall be provided of any
changes to corporate structure, accounting methodologies, allocation of common costs,
or atypical or non- recurring items included' in the filing.
The regulatory authooriginal jurisdiction over the Company's rates, shall
review and render a decision owany"s proposed rate, adjustmenit prior to the
Effective Date, The Company shalil provideall suipP
: lemental Information requested to
ensure an opportunity for adequate review by the relevant regulatory authority. The
Company shall nopose any limits upon the provision of suipplemental
t Wo
original request. The regulatory authority may propose any adjustments it determines to
be required to bring the proposed rate adjustment into compliance with the provisions of
this tariff.,
The regulatory authority may disallow any net plant investment that is not shown to be
prudently incurred. Approval by the regulatory authority of net pliant investment pursuant
to the provisions of this ta, riff shall constitute a finding that such net plant investment
was prudently incurred. Such find'ing of prudence shall' not be subject to further review
in a subseq;uient RRM or Statement of Intent filing.
During the Review Feriod, the Comipa,ny and the regulatory authority will work
collaboratively and seek agreement on the level of rate adjustments, l�f, at the end of the
Review Period, the Company and the regulatory authority have not reached agreement,
the reority shall take action to miodify or deny the proposed rate
adjustments, The Company shall have the right to appeal the rewry authority's
action to the Railroad Commission of Texas. Upon the filing of an appeal of the
regulatory authority's, order relating to an annual RRM filing withl the Railroad
Commission of Texas, the regiulatory authority havinig rlinal junsdiction over the
Company"s rates, shall not oppose the implementation of the Company's proposed rates
subject 'to refund, nor will the regulatory authority advocate for the imposition of a third
party surety bond by the Company, Any refund shall be limited to anid determined based
on the resolution of the dlisputed adjustment(s) in a final, non -appealable order issued in
the appeal filed by the Company at the Railroad Commission of Texas,.
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
. . . . .... ..... . .....
RATE SCHEDULE: RRM — Rate Review Mechanism
APPLICABLE TO: ALL CITIES IN THE MI!D-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
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EFFECTIVE, DATE: Bills Rendered on and after 04/0112018 [PAGE
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In the event that the regulatory authority and Company agree to a rate adj�uistment(sl
that is different from the adjustment(s) reqed in the Company's filing, the Compan �
y
shall file compliance tariffs cons,istenit with the agreement. No action on the part of the
regulatory authority shall be required to allow the rate adjuistment(s) to become effective
on October 1 . To the ext�ent that the regulatory authority does not take action on the
Company's RRM filing by September 30, the rates proposed in the Comipa,ny's filing
shall be deemed approved' effective October 1, Notwithstanding the preceding
sentenice, a regulatory authority may choose, to take ae action to approve a rate
adjustment undier this tariff. In those Instances where such approval cannot reasonably
occur by September 30, the rates finally approved by the regulatory authority shall be
deemed effective as of October 1.
W W
11 111111111:xIII "piplicirr"
ATMOlS ENERGY CORPORATION
MID-TEX DIVISION
......... .
RATE SCHEDULE: RRM —state Review Mechanism
APPLICABLE TO: ALL CITIES IN'THE MIS -TE X DIVISION'AS IDENTIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
. ...........
EFFECTIVE DATE: Bills Rendered on and after 0l4/01/2018 PAGE. 6
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Orders issued pursuant to thiis mechanism are, ratemaking orders and shall be subject
to appeal' under Sections 102.001(b) and 103,021, et seq., of the Texas Utilities Code
(Vernon 2007).
oil•
Notice of each annual RRM filling shall be provided!, by inclulding the notice, in
conspicuous form, in the, bill of each directly affected customer no later than forty-five
(45l) days after the Company makes its annual filing pursuant to this tariff, The notice to
custolmiers shall include the following information-
b) the effect the proposed revision, of rates is expected to have on the rat
applicable to each customer class, and on an average bill for each affect
customer', I
c) the service area or areas in which the proposed rates would apply,
d) the date the annual RRM filing was made with thle regulatory authority; ani'
e) the Company's address, telephone number and website where info
concerning the proposed rate adjustment can be obitained. I
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
. . ...... . .....
RATE SCHEDULE: RR M — Rate Review Mechanism
APPLICABLE TO: ALL CITIES IN THE MID-TE X DI ISI N AS IDENTIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
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EFFECTIVE DATE: Bills Rendered on and after 041011/2018 PACE 7
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Exhibit A
ACSC Cities
Abilene
Cleburne
Frost
Lincoln Park
Addison
Clyde
Gainesville
Little Elm
Albany
College Station
Garland
Lorena
Allen
C0eyville
Garrett
Madisonville
Alvarado
Colorado City
Grand Prairie
Malakoff
Angus
Comanche
Grapevine
Mansfield
Anna
Commerce
Groesbeck
Mckinney
Argyle
Coolidge
Gunter
Melissa
Arlington
Coppefl
Haltom City
Mesquite
Aubrey
Copperas Cove
Harker Heights
Micllothian
Azle
Corinth
Haskell
Murphy
Bedford
Cranc!Mll
Haslet
Newark
Bellmead
Crowley
Hewitt
Nocona
Benbrook
Dalworthington Gardens
Hiighland Park
North Richland Hills
Beverly Hills
Denison
Highland Vfllage
No�rthliake
Blossom
Denton
Honey Grove
Oak Leaf
Blue Ridge
Desoto
Hurst
Ovifla
Bowie
Draper
Hutto,
Palestine
Boyd
Duncanville
Iowa Park
Pantego
Bridgeport
Eastland
Irving
Paris
Brownwood
Edgecliff Village
Justin
Parker
Buffalo
Emory
Kaufman
Pecan Hill
Burkburnett
Ennis
Keene
Petrolia
Burleson
Euless
Keller
Plano
Caddo Mills
Everman
Kemp
Ponder
Canton
Fairview
Keninedale
Pottsboro
Carrollton
Farmers Branch
Kerens
Prosper
Cedar Hill
Farmersville
Kerrville
Quitman
Celeste,
Fate
Killeen
Red Oak
Celina
Flower Mound
Krum
Reno (Parker County)
Centerville
Forest Hill
Lake Worth
Rhome
Cisco
Forney
Lakeside
Richardson
Clarksville
Fort Worth
Lancaster
Richland
Frisco
Lewisville
Richland Hills
ATMOS ENERGY CORPORATION
MID-TE X DIVISION
. . .......... . ..... . . .......... ......... .
RATE SCHEDULE: RRM! — Rate Review, Mechanism
APPLICABLE TO: ALL CITIES IN T'H�E MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO
THIS RATE SCHEDULE
. ............. ..
EFFECTIVE DATE: Bills Rendered on and after 0410112018 PAGE: 8
=__ __71- - .. ....... ..... _.. ................ . . . ..
River Oaks,
Temple
Roanoke
Terrell
Robinson
The Colony
Rockwall
Trophy Club
Roscoe
Tyler
Rowlett
University Park
Royse City
Venus
Sachse
Vernon
Saginaw
Waco
Sansom, Park
Watauga
Seagoville
Waxahachie
Sherman
Westlake
Snyder
Westover Hills
Southlake
Westworth Village
Springtown
White Settlement
Stamford
Whitesboro
Stephenville
Wichita Falls
Sulphur Springs
Woodway
Sweetwater
'Wylie