HomeMy WebLinkAboutR2017-004s:\legal\our documen ts\resolutions\17\gud10580-atm-atmos-intervention resolution rate case 2017.doc
RESOLUTION • R2017-004
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OPEN MEETINGS ACT;♦., MAKINGOTHER FINDINGS AND PROVISIONS
R TO THE SUBJECT
WHEREAS, Atmos Pipeline—Texas ("APT") filed a Statement of Intent with the
Railroad Commission of Texas on or about January 6, 2017 to increase Rate CGS and Rate PT;
and
WHEREAS, APT plans to increase its revenue requirement by approximately $72.9
million, representing an increase of approximately 17.38%; and
- impact on • on -• - basis,• •
The customer charge in a customer's bill is the "Maximum Daily Quantity" ("MDQ"), multiplied by the capacity
charges shown in the table above.
Capacity Charges
_..
Current
Proposed
_ _....
Current Usage
Capacity
Capacity
Charge per
Charge per
Charge per
MMBtu of
MMBtu of Percentage
. Rate Schedule
Percentage
Difference Increase
Rate CGS ("City
-
_SSSS. w....,,, _,..m........
Gate Service") –
Increase
Rate CGS
idTex
$9.1275
$11.24146 $2.11396 23%
Rate CGS ter
$9.1275
$1„1 24146 ®$2.11396 23%
Rate PT ("Pipeline
$0.02785
Transportation")
$4.8331
$7.70001 $2.86691 59%
The customer charge in a customer's bill is the "Maximum Daily Quantity" ("MDQ"), multiplied by the capacity
charges shown in the table above.
Usage Charge
_ _....
Current Usage
Proposed
..........
Charge per
Usage Charge
Percentage
Rate Schedule
per MMBtu
Difference
Increase
Rate CGS
_MMBtu_
id Tex
$0.0276
$0.02785
$0.00025
1%
Rate CGS –
Other
$0.0276$0.02785
$0.00025
1 %
Rate PT..
$0.0163 ..
$0.01325
_
..($0.00305)._....,
-19%
s:\Iegal\our documents\reso I utions\17\gud]0580-atm-atmos-interventi on resolution rate case 2017.doc
WHEREAS, APT seeks a Return on Equity (ROE) of 13.5%; a capital structure weighted
toward equity — 59.83% Equity and 40.17% Debt; and
WHEREAS, APT's rate request consists of a voluminous amount of information
including APT's rate -filing package, exhibits, schedules, and work papers; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating APT's rate request and its changes in tariffs it is prudent
to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by APT to change rates, has in
the past joined with other local regulatory authorities to form the Atmos Texas Municipalities
("ATM") and hereby continues its participation in ATM; and
WHEREAS, the City will require the assistance of specialized legal counsel and rate
cxperts to review the merits of APT's application to increase rates; and
WHEREAS, APT filed a statement of intent to increase rates with the Railroad
X 3 i
=m�w1wri-xf Xj�A,939_w&�Li E%,;rr-1,w=,;Ahx decision of the Railroad Commission of Texas will have
an impact on the rates paid by the City and its citizens who are customers of APT, and in order
for the City's participation to be meaningful, it is important that the City promptly intervene in
such proceedings at the Railroad Commission of Texas, NOW, THEREFORE,
SECTION 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
SECTION 2. The City authorizes intervention in proceedings related to APT's Statement
of Intent before the Railroad Commission of Texas and related proceedings, including in courts
of law, as part of the coalition of cities known as the Atmos Texas Municipalities ("ATM").
SECTION 3. The City hereby orders APT to reimburse the City's rate case expenses as
provided in the Gas Utility Regulatory Act and that APT shall do so on a monthly basis and
within 30 days after submission of the City's invoices for the City's reasonable costs associate,,i
with the City's activities related to this rate review or to related proceedings involving APT
before the Railroad Commission of Texas or any court of law.
SlIX '11ON 4. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with regard to
rate proceedings involving APT before the Railroad Commission of Texas or any court of law
?.nd to retain such experts as may be reasonably necessary for review of APT's rate application
subject to approval by the City.
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sAlegahour documents\resolutions\17\gud 1 0580 -atm -atmos -intervention resolution rate case 2017.doc
SECTION 5. The City, or its designee member city in the Atmos Texas Municipalities,
shall review the invoices of the lawyers and rate experts for reasonableness before submitting the
invoices to APT for reimbursement.
SECTION 6. A copy of this resolution shall be sent to APT, care of Mr. Charles R.
Yarbrough, 11, 5420 LBJ Freeway, Suite 1557, Dallas, Texas, 75240; and to Mr. Alfred R.
Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701.
SECTION 7. 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 551.
SECTION 8. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this the1A day of F'4) t 2017.
CHRY,�"WATTS, MAYOR
ATTEST:
JE'LJLTIFEZ W4LLTE
BY:
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I Wn N In 111 -,A I LVA IL41 I Wff...'AA1111 0.
BY:
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