HomeMy WebLinkAbout2013-3498 - Ordinance - 05/23/2013 ORDINANCE NO. 2013-3 _
AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, ( "CITY ")
APPROVING AND ADOPTING RATE SCHEDULE "RRM — RATE REVIEW
MECHANISM" FOR ATMOS ENERGY CORPORATION, MID -TEX DIVISION TO BE
IN FORCE IN THE CITY FOR A PERIOD OF TIME AS SPECIFIED IN THE RATE
SCHEDULE; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF
THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND ACSC
LEGAL COUNSEL.
WHEREAS, the City of College Station, Texas ( "City ") is a gas utility customer of Atmos
Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "the 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 cities, most of whom retain original jurisdiction over the rates and services of Atmos
Mid -Tex; and
WHEREAS, in 2007 ACSC member cities and Atmos Mid -Tex collaboratively developed the
Rate Review Mechanism ( "RRM ") Tariff that allows for an expedited rate review process
controlled by cities as a substitute for the legislatively - constructed Gas Reliability Infrastructure
• Program ( "GRIP "); and
WHEREAS, the GRIP mechanism does not permit the City to review rate increases, and
constitutes piecemeal ratemaking; and
WHEREAS, the RRM process permits City review of requested rate increases and provides for a
holistic review of the true cost of service for Atmos Mid -Tex; and
WHEREAS, the initial RRM tariff expired in 2011; and
WHEREAS, ACSC's representatives have worked with Atmos Mid -Tex to negotiate a renewal
of the RRM process that avoids litigation and Railroad Commission filings; and
WHEREAS, the ACSC's Executive Committee and ACSC's legal counsel recommend ACSC
members approve the negotiated new RRM tariff; and
WHEREAS, the attached Rate Schedule "RRM — Rate Review Mechanism" ( "RRM Tariff")
provides for a reasonable expedited rate review process that is a substitute for, and is superior to,
the statutory GRIP process; and
WHEREAS, the expedited rate review process as provided by the RRM Tariff avoids piecemeal
ratemaking; and
WHEREAS, the RRM tariff reflects the ratemaking standards and methodologies authorized by
the Railroad Commission in the most recent Atmos Mid -Tex rate case, G.U.D. No. 10170; and
WHEREAS, the RRM Tariff provides for an annual reduction in Atmos Mid -Tex's requested
rate increase of at least $3 million; and
WHEREAS, the RRM Tariff provides for a lower customer charge than if Atmos Mid -Tex
pursued GRIP filings; and
WHEREAS, the attached RRM Tariff as a whole is in the public interest; now, therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
Part 1. That the findings set forth in this Ordinance are hereby in all things approved.
Part 2. That the City Council finds that the RRM Tariff, which is attached hereto and
incorporated herein as Attachment A, is reasonable and in the public interest, and is
hereby in force and effect in the City.
Part 3. That to the extent any resolution or ordinance previously adopted by the City Council is
inconsistent with this Ordinance, it is hereby repealed.
tir Part 4. 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.
Part 5. That if any one or more sections or clauses of this Ordinance is judged 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.
Part 6. That this Ordinance shall become effective from and after its passage.
Part 7. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Christopher Felan,
Vice President of Rates and Regulatory Affairs for Atmos Mid -Tex Division, Atmos
Energy Corporation, 5420 LBJ Freeway, Suite 1600, 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.
ADOPTED this 23r day of , A.D. 2013.
ATTEST: APPROVED:
OA/by-d C A itCri rc(x 4
City Sec etary Mayor
APPROVED:
daft- 7 A
City Attorney
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