ORD 2011-28TOWN OF TROPHY CLUB , TEXAS
ORDINANCE NO . 2011 -28
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, ("TOWN") APPROVING A NEGOTIATED
RESOLUTION BETWEEN THE ATMOS CITIES STEERING
COMMITTEE ("ACSC" OR "STEERING CO MM ITTEE") AND ATMOS
ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR
"COMPANY ") REGARDING THE COMPANY'S FOURTH ANNUAL
RATE REVIEW MECHANISM ("RRM") FILING IN ALL CITIES
EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING
RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT
REFLECT RATE ADJUSTMENTS CONSISTENT WITH T HE
NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET
BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE;
REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; REPEALING CONFLICTING
RESOLUTIONS OR ORDINANCES ; DETERMINING THAT T HIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING
A SAVINGS CLAUSE; DECLARING AN EFFE CTIVE DATE; AND
REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY
AND THE STEERING COMMITTEE'S LEGAL COUNSEL.
WHEREAS , the Town of Trophy Club, Texas (''To wn'') is a gas utility customer of
Atmos Energy Corp., Mid-Te x Division ("Atmos Mid-Tex" or " Company"), and a
regulatory authority with an interest in the rates and charg es of Atmos Mid-Tex; and
WHEREAS , the To wn is a member of the Atmos Cities Steering Committee
("ACSC" or "Steering Committee"), a coalition of approximately 154 similarly situated
citie s served by Atmos Mid-Tex that have joined together to facilitat e th e rev ie w of and
response to natural gas issues affec ting rates charged in the Atmos Mid·Tex service
area (such participating cities are referred to he rein as "ACSC C iti es"); a nd
WHEREAS, pursuant to the terms of the agreement settling the Company's 200 7
Statement of Intent to increase rates, ACSC Cities and the Company worked
co ll abo ra tivel y to deve lop a Rate Rev ie w Mec hanism ("RRM ") tariff that allows for an
e xpedited rate revie w process controlled in a three-year experiment by ACSC Cities as
a substitute to the current GRIP process instituted by the Legislature; and
WHEREAS, the To wn took action in 2008 to approve a Settlement Agreement
with Atmos Mid·Tex resol ving the Company's 2007 rate case and authorizing the RRM
Tariff; and
WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of
ACSC Citi es' reaso nab le expe nses assoc iated with RRM app lic at ion s; a nd
WHEREAS, the Steering Committee and Atmos Mid-Tex agreed to extend the
RRM process in reaching a settlement in 2010 on the third RRM filing; and
WHEREAS , on or about April 1, 2011, the Company filed with the Town its fourth
a nnual RRM filing , requ es ting to increase natural gas base rat es by $15 .7 million; and
WHEREAS, ACSC coordinated its review of Atmos Mid -Tex's RR M filing by
designating a Settlement Committee made up of ACSC representatives, assisted by
ACSC attorneys and consultants, to resolve issues identified by ACSC in the
Company's RRM filing; and
WHEREAS , independent analysis by ACSC's rate expert concluded that Atmos
Mid-Tex is unable to justify an increase over current rates except for undisputed costs of
$6.6 million to cover the steel service line replacement program initiated in 2010; and
WHEREAS, the ACSC Settlement Committee, as well as ACSC lawyers and
consultants, recommend that ACSC Cities approve the attached rate tariffs
("Attachment A" to this Ordinance), which will increase the Company's revenue
requirem e nt by $6.6 million to extend current recovery of incremental direct costs of th e
steel servic e lin e replacem e nt program authori zed by ACSC Citi e s in ordinances
passed in 2010; and
WHEREAS, the attached tariffs implem e nting new rates ar e consistent with the
negotiated resolution reached by ACSC Cities and are just, reasonable , and in the
public interest.
NOW, THEREF ORE, BE IT OR DAIN ED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the finding s se t forth in thi s Ordinance a re he reby in all thing s
approved.
Section 2. That the Town Council finds the existing rates for natural gas service
provided by Atmos Mid -Tex are unreasonable and new tariffs which are attached hereto
and incorporated herein as Attachment A, are just and reasonable and are hereby
adopted.
Section 3. That Atmos Mid-Tex shall reimburse the reasonable ratemaking
expenses of the ACSC Cities in processing the Company's rate application.
Section 4 . T hat to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That the meeting at which this Ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Gove rnment Code , Chapter 551.
ORD 2011-28 Page 2 of 3
Section 6. That if anyone or more sections or clauses of this Ordinance is
adjudg ed to be uncon stitutiona l or invalid, such judgment shall not affect , im pair 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 7. That 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
Septemb er', 20".
ATTEST:
n S ecretary , Sli annon DePrater
Town of Trophy Club , Texas
APPROVED TO AS FORM :
~.! II L1)tWtll J}
Town Attorney, Patricia Adams
Town of Trophy Club, Texas
ORD 2011·28
M'ayo r, Connie White
Town of Trophy Club , Texas
[SEAL]
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