ORD 2009-17TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2009-17
A ORDINANCE OF THE TOWN OF TROPHY CLUB
APPROVING A CHANGE IN THE TARIFFS OF ATMOS
ENERGY CORPORATION, MID-TEX DIVISION ("ATMOS")
AS A RESULT OF A SETTLEMENT BETWEEN ATMOS
AND THE ATMOS TEXAS MUNICIPALITIES ("ATM");
FINDING THE RATES SET BY THE ATTACHED TARIFFS
TO BE JUST AND REASONABLE; FINDING THAT THE
MEETING COMPLIED WITH THE OPEN MEETINGS ACT;
DECLARING AN EFFECTIVE DATE; AND REQUIRING
DELIVERY OF THE ORDINANCE TO THE COMPANY
AND LEGAL COUNSEL
WHEREAS, the Town of Trophy Club ("Town") is a regulatory authority under the
Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive
original jurisdiction over Atmos Energy Corporation -Mid-Tex Division ("Atmos") rates,
operations, and services of a gas utility within the municipality; and
WHEREAS, the Town has participated in prior cases regarding Atmos as part of
a coalition of cities known as the Atmos Texas Municipalities ("ATM"); and
WHEREAS, pursuant to the Rate Review Mechanism ("RRM") for 2008 Atmos
filed with the Town Secretary on March 6, 2009 for an increase in rates of $24,047,441
with an offset of $9 million at the expiration of the 2007 true-up resulting in a net
increase of $15,047,441; and
WHEREAS, for almost four months the experts representing ATM have been
analyzing data furnished by Atmos and interviewing Atmos' management; and
WHEREAS on June 26, 2009, ATM and Atmos entered into a settlement
agreement which provided for a net increase of $2.6 million. This will cause rates to
increase by 15 cents per month for a typical residential customer; and
WHEREAS, the net increase is approximately 17% of the total amount
requested; and
WHEREAS, slight changes were agreed to by ATM to the Gas Cost Recovery
tariff and the Conservation Energy Efficiency tariff; and
WHEREAS, the Steering Committee of ATM and its lawyers recommend
approval of the attached tariffs, set forth as Attachment A.
Ordinance 2009-17
NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB THAT:
Section 1. That the statements set out in the preamble to this Ordinance are
hereby in all things approved and adopted.
Section 2. The amended tariffs in Attachment A are hereby adopted to
become effective on August 1, 2009.
Section 3. 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 4. This Ordinance shall become effective from and after its passage.
Section 5. A copy of this Ordinance shall be sent to Atmos Mid-Tex, care of
Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway,
Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, at Herrera &
Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, TX 78701.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas this 20 th day of July, 2009.
ATTEST:
( '~ , i.<'~'~h n '·01:7 /2/Jj1
Town Secretary
Town of Trophy Club, Texas
[Seal]
APPROVED AS TO FORM:
~J:JA u6JC,\ d OL\I\JvQ/
own Attorney
Town of Trophy Club, Texas
Ordinance 2009-17
Mayor, Connie White
Town of Trophy Club, Texas
ATTACHMENT A
AMENDED TARIFFS
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: Q
RATE SCHEDULE: R -RESIDENTIAL SALES
APPLICABLE TO: All Cities designated as "Group AU on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 29
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 Mcf charges to the
amounts due under the riders Jisted below:
Customer Charge per Bill $ 7.00 per month
Commodity Charge -All Mcf $2.2707 per Mcf
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.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: Q
RATE SCHEDULE: C -COMMERCIAL SALES
APPLICABLE TO: All Cities designated as "Group An on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 30
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 3,000 Mcf.
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 Mcf charges to the
amounts due under the riders listed below:
Customer Charge per Bill $ 13.50 per month
Commodity Charge -All Mcf $ 0.9877 per Mcf
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.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
RiderRRM.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: I -INDUSTRIAL SALES
REVISION NO: Q
APPLICABLE TO: All Cities designated as "Group An on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 31
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:
Customer Charge per Meter $ 425.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.2583 per MMBtu
Next 3,500 MMBtu $ 0.1884 per MMBtu
All MMBtu OVer 5,000 MMBtu $ 0.0404 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.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
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."
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: 1-INDUSTRIAL SALES
REVISION NO: Q
APPLICABLE TO: All Cities designated as "Group An on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 32
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 recogn'lzed as authoritative by the natural gas industry and most closely
approximating the applicable index.
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 Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meier.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: T -TRANSPORTATION
REVISION NO: Q
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 33
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
Customers bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Customer Charge per Meter $ 425.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.2583 per MMBtu
Next 3,500 MMBtu $ 0.1884 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0404 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
RiderRRM.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: T -TRANSPORTATION
REVISION NO: Q
APPLICABLE TO: All Cities designated as "Group An on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 34
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.
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 "midpoinf' or "common" price for the Katy paint 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 tile 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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: Q
RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 I PAGE: 45
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) 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 Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Mcf by the following formula:
WNAFi =
Where
=
WNAFi =
Ri =
HSFi =
NDD =
ADD =
Bli =
(HSFi x (NDD-ADD) )
Ri
(BLi + (HSFi x ADD))
any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Mcf
base rate of temperature sensitive sales for the ith schedule or
classification approved by the entity exercising original jurisdiction.
heat sensitive factor for the ith schedule or classification calculated as the
slope of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM filing.
billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
billing cycle actual heating degree days.
base load sales for the ith schedule or classification calculated as the y-
intercept of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM filing.
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: !!.
RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as "Group An on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08101/2009 I PAGE:46
WNA,= WNAF, X q'j
Where q'J is the relevant sales quantity for the jth customer in ith rate schedule.
Filings with Entities Exercising Original Jurisdiction
As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather
Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather
Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such
Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer
bills, with customer information deleted, for each rate schedule or classification to which the WNA was
applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA
application, such data will be provided by the Company as part of the annual RRM filing.
If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base Use/Heat Use Factors
Weather Station
Abilene
Austin
Dallas
Waco
Wichita
Falls
Residential
Base use
Mcf
0.98
1.30
1.60
1.12
1.12
Heat use
Mcf/HDD
.0140
.0161
.0212
.0139
.0159
Sample WNAFJ Calculation:
(.0140
.3393 per Mcf = 2.2707 x
(0.98
Where
= Residential Single Block Rate Schedule
Ri = 2.2707 per MCF
HSFi = .0140 (Residential-Abilene Area)
x
+
Commercial
Base use Heat use
Mcf Mcf/HDD
9.64 .0629
20.00 .0815
20.12 .1018
11.69 .0608
11.67 .0649
(30-17)
(.0140 x 17))
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: Q
RIDER:
APPLICABLE TO:
EFFECTIVE DATE:
NOD =
ADD =
WNA -WEATHER NORMALIZATION ADJUSTMENT
All Cities designated as "Group A" on the Cities Served List
Bills Rendered on or after 08/01/2009 I PAGE: 47
30 HOD (Simple ten-year average of Actual HOD for Abilene Area -9115106
-10114106)
17 HOD (Actual HOD for Abilene Area -9/15/06 -10114/06)
Bli = 0.98 Mef (Residential -Abilene Area)
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
TOWN OF
!&fAiili $ §&rnpfii§ A
TROPHY CLUB
July 17, 2009
Atmos Mid-Tex,
% Joe T. Christian, Director of Rates
Atmos Energy Corporation
5420 LBj Freeway, Suite 1800
Dallas, Texas 75204,
Re: Trophy Club Ordinance 2009-17
Mr. Christiani:
Enclosed, please find one original Ordinance 2009-17, APPROVING A CHANGE IN
THE TARIFFS OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION, AS A RESULT OF A
SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES, AND PROVIDING
AN EFFECT DATE, approved by the Town Council on July 20, 2009.
Please feel free to contact me if you have any questions.
Sincerely,
do 1t""7~'
Lisa Hennek
Town Secretary
Town of Trophy Club
100 Municipal Drive Trophy Club, Texas 76262 Tele. (682) 831-4600 Fax (817) 491-9312
TOWN OF
5
TROPHY CLUB
Austin, TX 78701
July 17, 2009
Jim Boyle
Counsel to ATM at Herrera & Boyle, PLLC
816 Congress Avenue, Suite ·1250,
Austin, TX 78701
Re: Trophy Club Ordinance 2009-17
Mr. Boyle
Enclosed, please find one original Ordinance 2009-17, APPROVING A CHANGE IN
THE TARIFFS OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION, AS A RESULT OF A
SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES, AND PROVIDING
AN EFFECT DATE, approved by the Town Council on July 20, 2009.
Please feel free to contact me if you have any questions.
Sincerely,
~Ott4"vC
Lisa Hennek
Town Secretary
Town of Trophy Club
100 Municipal Drive Trophy Club, Texas 76262 Tele. (682) 831-4600 Fax (817) 491-9312