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HomeMy WebLinkAboutR2015-015RESOLUTION NO. 82015 -015 A RESOLUTION BY THE CITY OF DENTON, TEXAS ( "CITY "), APPROVING A CHANGE IN THE RATES OF ATMOS ENERGY CORPORATION, MID -TEX DIVISION ( "ATMOS ") AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES ( "ATM ") UNDER THE RATE REVIEW MECHANISM; 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 RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Denton, Texas ( "City ") 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 service of a gas utility within the municipality; and WHEREAS, the City 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 2015 filed with the City on or around February 27, 2015 for a proposed system -wide increase of $28.7 million; and WHEREAS, experts representing ATM have been analyzing data furnished by Atmos and interviewing Atmos' management regarding the RRM; and WHEREAS, in May 2015, ATM and Atmos entered into a Settlement Agreement which resolved the 2014 RRM and 2015 RRM; and WHEREAS, the settlement agreement permits Atmos to implement an increase of $21.87 million increase over the current interim rates Atmos is charging, which when combined with the increase under the 2014 RRM produces an increase of $65.7 million increase over Atmos' 2013 revenues; and WHEREAS, as part of the settlement agreement, Atmos will dismiss its pending appeal at the Railroad Commission of Texas, Atmos will not seek to recover rate case expenses over and above the agreed rate increase; and WHEREAS, the Steering Committee of ATM and its counsel recommend approval of the attached tariffs, set forth as Attachment A along with the proof of revenues set forth as Attachment B and approval of Attachment C; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. The findings set forth in this Resolution are hereby in all things approved. .� .._. SECTION 2. The amended tariffs in Attachment A are hereby adopted to become effective on June 1, 2015. 1 SECTION 3. To the extent any Resolution previously adopted by the City Council is inconsistent with this Resolution, it is hereby superseded. SECTION 4. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 5 51. SECTION 5. If any one or more sections or clauses of this Resolution is judged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Resolution and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. SECTION ..6. This Resolution shall become effective from and after its passage. SECTION 7. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Christopher Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240 and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250 Austin, Texas 78701. II• ,1,141- PASSED AND APPROVED this t day of , 2015. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY; �y ptl 2 AT I'S, MAYOR Attachment A MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: R – RESIDENTIAL SALES ........ a .. .......... 1111111-11111111111111- - .......... .__ —............................................. APPLICABLE TO: DALLAS AND UNINCORPORATED AS IN THE MID -TEX DIVISION EXCEPT THE CITY OF REAS EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE: 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 $ 18.60 per month Rider CEE Surcharge $ 0.02 per month' Total Customer Charge $ 18.62 per month Commodity Charge – All Ccf $0.09931 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 GUD 10170. Surcharge billing effective July 1, 2014. Attachment A MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: R — RESIDENTIAL SALES ...... � ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CIT... - APPLICABLE TO: Y OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE: MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: C — COMMERCIAL SALES APPLICABLE DALLAS IN THE MID -TEX DIVISION EXCEPT THE CITY OF � BLE TO: ALL C � OF AREAS AS AND UNINCORPORATED eT EFFECTIVE DATE. Bills Rendered on or after 06/01/2015 PAGE: 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 $ 40.00 per month Rider CEE Surcharge $ 0.00 per month' Total Customer Charge $ 40.00 per month Commodity Charge — All Ccf $ 0.08020 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, 2014. 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 $ 700.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.2937 per MMBtu Next 3,500 MMBtu $ 0.2151 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0461 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. MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I — INDUSTRIAL SALES m.. .................�.......... ... APPLICABLE TO: ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DAT E: Bills Rendered on or after 06/01/2015 5 PAGE. .m.A m�.� ...............m . ...�. __ 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 meter. 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 $ 700.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.2937 per MMBtu Next 3,500 MMBtu $ 0.2151 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0461 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. MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T — TRANSPORTATION APP. ....,_ ALL CUSTOMERS AND RSI IN THE MID-TE ..................�,.. .�............. - . ...... �. _ APPLICABLE TO: VISION EXCEPT THE CITY OF DALLAS AREAS EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 P --uuu ---AGE 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. 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 Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one - hundredth cent per Ccf by the following formula: (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 a& WNA; = WNAFi x q;j Where qq is the relevant sales quantity for the jth customer in ith rate schedule. Base Use /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 a 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 10.22 0.1404 98.80 0.6372 Austin 11.59 0.1443 213.62 0.7922 Dallas 14.12 0.2000 208.11 0.9085 Waco 9.74 0.1387 130.27 0.6351 Wichita 11.79 0.1476 122.35 0.5772 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. 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