HomeMy WebLinkAboutORD 2018-023 ORDINANCE NO. 2018-023
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, 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 SAVINGS 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;
DECLARING AN EMERGENCY AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine, 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 authorized by the City in 2008, 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;
and
WHEREAS, the City Council deems the adoption of this ordinance is in the best
interests of the health, safety, and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated herein above are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Section 2. That the findings set forth in this Ordinance are hereby in all things
approved.
Section 3. 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 4. 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 5. That to the extent any resolution or ordinance previously adopted by
the City is inconsistent with this Ordinance, it is hereby repealed.
Section 6. 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.
ti
Ordinance No. 2018-023 2
Section 7. 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 of this
Ordinance shall be interpreted as if the offending section or clause never existed.
Section 8. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace
and general welfare of the public creates an emergency which requires that this ordinance
become effective from and after the date of its passage, and it is accordingly so ordained.
Section 9. 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.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS on this the 20th day of March, 2018.
APPROVED:
Ale 4,
Willia D. Tate
Mayor
ATTEST:
C3RAPF
Ui&A U / -",11810
`gym
Tara Brooks 1\ ���
City Secretary
* * *
APPROVED AS TO FORM:
City Attorney
Ordinance No. 2018-023 3