HomeMy WebLinkAboutORD 2016-033ORDINANCE NO. 2016-033
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, APPROVING A NEGOTIATED
SETTLEMENT BETWEEN THE ATMOS CITIES STEERING
COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2016 RATE REVIEW
MECHANISM FILINGS; 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 ORDINANCE 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 ORDINANCE TO THE COMPANY AND THE ACSC'S
LEGAL COUNSEL.
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 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, on March 1, 2016, Atmos Mid -Tex filed its 2016 RRM rate request
with ACSC Cities; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2016 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to
resolve issues identified in the Company's RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and
consultants, recommend that ACSC Cities approve an increase in base rates for Atmos
Mid -Tex of $29.9 million on a system -wide basis; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest; and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
WHEREAS, all constitutional and statutory prerequisites for the approval of this
Ordinance have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this Ordinance to be 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 hereinabove 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 City Council finds that the settled amount of an increase in
revenues of $29.9 million on a system -wide basis represents a comprehensive settlement
of gas utility rate issues affecting the rates, operations, and services offered by Atmos
Mid -Tex within the municipal limits arising from Atmos Mid-Tex's 2016 RRM filing is in the
public interest, and is consistent with the City's authority under Section 103.001 of the
Texas Utilities Code.
Section 4. That the existing rates for natural gas service provided by Atmos Mid -
Tex are unreasonable. The new tariffs attached hereto and incorporated herein as
Attachment "A", are just and reasonable, and are designed to allow Atmos Mid -Tex to
recover annually an additional $29.9 million in revenue over the amount allowed under
currently approved rates, as shown in the Proof of Revenues attached hereto and
incorporated herein as Attachment "B"; such tariffs are hereby adopted.
Section 5. That the ratemaking treatment for pensions and other post -employment
benefits in Atmos Mid-Tex's next RRM filing shall be as set forth on Attachment C,
attached hereto and incorporated herein.
Section 6. That Atmos Mid -Tex shall reimburse the reasonable ratemaking
expenses of the ACSC in processing the Company's 2016 RRM filing.
Ordinance No. 2016-033 2
MID-TEX DIVISION Attachment A
RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
R — RESIDENTIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
FPAGE: 12
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 19.10 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 19.12 per month
Commodity Charge — All Ccf
$0.11378 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX,
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
'Reference Rider CEE - Conservation and Energy Efficiency as approved in GUI 10170. Surcharge billing effective July 1, 2015.
D DIVISION
• •-••- •
Attachment A
RRC Tariff No:
RATE SCHEDULE:
C — COMMERCIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 13
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 41.75 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 41.77 per month
Commodity Charge — All Ccf
$ 0.08494 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 14
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
z4:191Z W-1 OR,
Attachment A
RRC Tariff No:
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CIT�7—OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
[PAGE: 15
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Raba |. Customer must have the type of meter required by Company.
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T — TRANSPORTATION
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 16
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T — TRANSPORTATION
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 17
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
DIVISION
• •--•F111111AI
Attachment A
RIDER:
WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
PAGE: 41
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adiustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAFi x q;;
Where q;; is the relevant sales quantity for the jth customer in ith rate schedule.
(HSFi x (NDD-ADD) )
WNAFi =
Ri
(BLi + (HSFi x ADD) )
Where
i =
any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi =
Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri =
Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi =
heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD =
billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD =
billing cycle actual heating degree days.
Bli =
base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAFi x q;;
Where q;; is the relevant sales quantity for the jth customer in ith rate schedule.
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
1 PAGE: 42
Ra.seUse/Heat Use Factors
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.09
0.1392
98.01
0.6440
Austin
11.21
0.1551
203.36
0.8564
Dallas
13.72
0.2048
189.83
0.9984
Waco
9.89
0.1411
129.75
0,6695
Wichita
11.49
0.1506
122.35
0.5967
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
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Section 7. That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 8. 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 9. 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 the
Ordinance shall be interpreted as if the offending section or clause never existed.
Section 10. That consistent with the City Ordinance that established the RRM
process, this Ordinance shall become effective from and after its passage with rates
authorized by attached tariffs to be effective for bills rendered on or after June 1, 2016.
Section 11. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of
Chris Felan, Vice President of Rates and Regulatory Affairs Mid -Tex Division, Atmos
Energy Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to
Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C.,
816 Congress Avenue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 17th day of May, 2016.
Willi'a'm D. Tate
Mayor
Tara Brooks
City Secretary
.IIvIff � . e f
John F. Boyle, Jr.
j City Attorney
Ordinance No. 2016-033 3