2006-016-ORD-Atmos Mid-Tex Division
ORDINANCE NO. 2006-016
AN ORDINANCE FINDING THAT THE EXISTING NATURAL GAS
DISTRIBUTION RATES OF ATMOS MID-TEX SHOULD BE REDUCED;
ORDERING ATMOS ENERGY CORP., MID-TEX DIVISION, TO
REDUCE ITS EXISTING RATES WITHIN THE CITY; ADOPTING
SPECIFIC NEW RATES R, T & C AND ORDERING ALL RATES,
SERVICE CHARGES AND TARIFF LANGUAGE NOT INCONSISTENT
WITH ATTACHMENT 1 TO REMAIN OPERATIVE EXCEPT THAT
ALL GRIP SURCHARGES SHALL IMMEDIA TEL Y CEASE;
ORDERING ATMOS MID-TEX TO REIMBURSE THE CITY FOR ITS
REASONABLE COSTS INCURRED IN THIS SHOW CAUSE AND ANY
RELATED RATE MAKING PROCEEDINGS OR APPEALS OF SAID
PROCEEDINGS; AUTHORIZING THE ATMOS CITIES STEERING
COMMITTEE TO ACT ON BEHALF OF CITY AND INTERVENE IN
ANY PROCEEDINGS BEFORE ADMINISTRATIVE OR JUDICIAL
BODIES; REQUIRING DELIVERY OF THIS ORDINANCE TO THE
COMPANY AND LEGAL COUNSEL; AND ORDAINING OTHER
PROVISIONS RELATED TO THE SUBJECT MATTER HEREOF.
WHEREAS, the City of Paris, Texas (City) is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of
Atmos Energy Corp., Mid-Tex Division (the "Company"); and
WHEREAS, the City has the authority under ~~ 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any
way in violation of any provision of law; and
WHEREAS, the City previously authorized participation with the Atmos Cities Steering
Committee (ACSC); and
WHEREAS, on October 24, 2005, the City ordered the Company to show cause
regarding the reasonableness of its existing natural gas distribution rates within the City; and
WHEREAS, the Company filed its rate filing package with the City on or about
December 31,2005; and
WHEREAS, the City's representatives obtained additional information from the
Company through written requests for information; and
WHEREAS, the City's consultants and representatives through cooperative efforts under
the direction of the ACSC have reviewed the rate filing package and responses to information
requests and have made a recommendation to the City regarding the rates to be charged by the
Company within the City; and
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WHEREAS, on April 24, 2006, a public hearing was held, at which time the Company
was given an opportunity to address the City Council regarding its current rates; and
WHEREAS, GURA S 104.151(a) provides that if a regulatory authority, on its own
motion or on complaint by an affected person, after reasonable notice and hearing, finds that the
existing rates of a gas utility for a service are unreasonable or in violation of law, the regulatory
authority shall enter an order establishing the just and reasonable rates to be observed thereafter,
and serve a copy of the order on the gas utility; and
WHEREAS, GURA S 104.151(b) provides that the rates thus ordered by the regulatory
authority constitute the legal rates of the gas utility until changed as provided by GURA; and
WHEREAS, after affording reasonable notice and hearing to the Company, it is the
City's opinion that the Company's current rates are not reasonable; and
WHEREAS, based upon such hearing, the briefing of staff, and the consultants'
findings, the City has made a determination of the reasonableness of the existing rates of the
Company, and has determined just and reasonable rates to be hereafter observed and enforced
for all services of the Company within the City; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby in all
things approved.
Section 2. That the Company was given reasonable notice of the hearing held on April
24, 2006, and the Company had a reasonable opportunity to show to the City that its rates were
just and reasonable.
Section 3. That the Company failed to show that its existing rates are just or
reasonable.
Section 4. That the rates set forth on Attachment "A" to this Ordinance, which
attachment shall be incorporated herein as if it were fully set forth herein, are just and reasonable
rates:
a. The rates set forth in Attachment "A" establish the Company's overall revenues at an
amount that will permit the Company a reasonable opportunity to earn a reasonable
return on its invested capital used and useful in providing service to the public in excess
of the Company's reasonable and necessary operating expenses, in compliance with
GURA S 104.051; and
b. The rates set forth in Attachment "A" do not yield more than a fair return on the
adjusted value of invested capital used and useful in providing service to the public, in
compliance with GURA S 104.052.
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Section 5. That the Company shall immediately begin charging the rates set forth on
Attachment "A" hereto, and shall, pursuant to GURA ~ 104.301, immediately cease the
imposition and collection of all Gas Reliability Infrastructure Program ("GRIP") surcharges.
Section 6. That the existing rates, service charges and tariff language not inconsistent
with Section 4 and Attachment A shall remain operative.
Section 7. That the City is authorized to intervene in any appeal of the City's action
filed at the Railroad Commission of Texas and to otherwise participate in any litigation
associated with the Company's rates charged in the City, in conjunction with the ACSC.
Section 8. That the Company shall promptly reimburse ACSC for ratemaking costs
associated with the City's activities related to the show cause proceeding, including appeals to
the Railroad Commission or Courts, in accordance with GURA ~ 1 03.022.
Section 9. That a copy of this Ordinance shall be sent to the Company, care of Richard
T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and
to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, P.O. Box 1725, Austin, Texas
78767-1725.
Section 10. That this Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
Section 11. That it is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and that public notice of the
time, place and purpose of said meeting was given as required.
DULY PASSED and approved by the City Council of the City of Paris, Texas, on this
the 24th day of April, 2006.
ATTEST:
APPROVED AS TO FORM:
.^ '. .-I-~;, IL:t1s_Q.. j"
, ~--"O"- ,-, f"
D. Lestock, Assistant City Attorney
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Attachment A
Atmos Energy Corp., Mid-Tex Division
Ordered Rates
Ordered
Line No. Rate R . Summary Rates
1 Customer Charge $ 7.50
2
3 Block 1 Commodity Rate (0-3 Mc~ $ 1.1915 per Mct
4 Block 2 Commodity Rate (over 3 Mc~ 0.9415 per Met
5
6 Average Monthly Bill (6 Mct without Gas Cost) $ 14.72 per Month
7
8 Average Monthly Bill (6 Mct with Gas Cost) $ 34.75 per Month
9
10
11
Ordered
12 Rate C . Summary Rates
13
14 Customer Charge $ 12.50
15
16 Block 1 Commodity Rate (0-30 Mc~ $ 0.7417 per Mct
17 Block 2 Commodity Rate (30-350 Mcn $ 0.4917 per Mct
18 Block 3 Commodity Rate (Over 350 Mc~ $ 0.2417 per Mct
19
20 Average Monthly Bill (30 Mct without Gas Cost) $ 36.76 per Month
21
22 Average Monthly Bill (30 Mct with Gas Cost) $ 136.78 per Month
23
24
25
Ordered
26 Rate T . Summary Rates
27
28 Customer Charge $ 300.00
29
30 Block 1 Commodity Rate (0-1,500 MMBtu) $ 0.4977 per MMBtu
31 Block 2 Commodity Rate (Next 3,500 MMBtu) $ 0.3477 per MMBtu
32 Block 3 Commodity Rate (Next 45,000 MMBtu) $ 0.1977 per MMBtu
33 Block 4 Commodity Rate (Over 50,000 MMBtu) $ 0.0477 per MMBtu
34
35 Average Monthly Bill (300 MMBtu without gas cost) $ 475.07 per Month
36
37 Average Monthly Bill (300 MMBtu with gas cost) $1,474.93 per Month
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