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Home My WebLink About18-1459. �; � � � L � . 1 � 1; 1 I !: 1 ! . .��•# < 1 . 1 : . �, • � . . � . � ; . �. � � ; 1 1 ' � ' 1 � ' � I : • • ' � , . � . , #, � � �� , � ,, , ; . �;. � � � ! �,: R .! � � � �� . , /�: ,.;. 1 � F:. �' � ,'.� ♦ a t �.. � , ,.� � . 1 � .�.. � � ��, � � a ,'..1 1 �� .... . � � 1 .�I ! � . .. a �.. ♦ �. �i � ... i � ♦. ; � � , �. � '; , ' �' � : � ' ,,, ♦ . . � • 1 Y � � � ♦ .... � � �: . �,. � � R�.. � � ,,.. � ■ � '.. � :/ F ♦ ir. � ♦,.. R � �I � • � ...� � , ,.� ,,., � . c .� ♦ .:' ♦ �; � � �.. ,1 ,,,, .� �' � ,'.. , 1 � ,. �.. , � ;� , �.,. \ � ,. ,! • ,., � ..,: , ....� r' � �' • A � � � I� � � ♦ � � �. � ♦ ! • '�. ' � ,,. ♦ ... ' � ,,, � .� , / ! +, � : ... . ' / '. • ,'.. , / � ♦. 1 � ♦ / WHEREAS, the City of Denton, Texas ("City") is a gas utility customer of Atmos Energy Corp., Ml(�-TeX D1V1510ri �"Atmos Mid-Tex" or "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 ("AC5C"), a coalition of similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities") that have joined together to facilitaie the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate Review Mechanism ("R "} tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the RRM tariff was adopted by the City in a rate ordinance earlier this year; and , . � .�� `. 1 . ' • r - -• 1 : '' . - -� - � �- �. �-• � . - . � . ,# * ��' ' �' 1 . � WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2018 RRM filing through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues identified in the Company's RRM filing; and � [ . ., . � . ., �' . � � � ��' '�� . � � # � �� '„!�� '�'�# .�� " ��' � ^ ., �,� ' • _ . - � � � ! �'� � '�� v � �� I ..�:� ��:.. • .� ..#' �• �:. j .: i : � . f��. ��'f •��." w � �� ...... �.:�.� . 1: WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and ' ' '�� ' �. - �� •� .�. . �_�- .�� - .� ��. - , �- , -� , . . 1 , � WHEREAS, the settlement agreement sets a new benchmark for pensians and retiree medical benefits (Exhibit B) and WHEREAS, the settlement agreement establishes an amortization schedule for regulatory liability (Exhibit C); and ' �� -" � � .� • . . . �� _ _ � �. ..:�� .��.. �_ , . ♦ �r ''' .�� . � NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION 1. That the findings set forth in this Resolution are hereby in all things approved. SECTION 2. That the City Council finds that the settled amount of an increase in revenues of $24.9 million on a system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmas Mid-Tex's 2018 RRM filing, is in the public interest, and is consistent with the City's authority under Section 103.001 of the Texas Utilities Code. # � � �. . . � . #� � �� ,� ��_ . � � �-� i�� ' t� + ., - - . t . • ' ' ' � . . � -�� • - -�� . � w � �•� � . �� •�� - - �� . �� , � - . • .. • .I ' .' � . . •' s .• � . � � # • ' . � . * ., . . . .�• i . 'r � s' I � 1 �. . �. � � _ �` �. �� 1 - - � � ; . #� .� �' ' •�•�:�# '� ', -�� . �.. . �.� .�#• '� SECTION,4. That the ratemaking treatment for pensions and retiree rnedical benefits in Atmos Mid-Tex's�next RRM filing shall be as set forth on Exhibit B, attached hereto and incorporated herein. SECTION 5. That amortization of regulatory liability shall be consistent with the schedule found in attached Exhibit C attached hereto and incorporated herein. � SECTION 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC in�processing the Company's 2018 RRM filing. SECTION 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. SECTION 8. That 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 9. That if any one or more sections or clauses of this Resolution is adjudged 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 10. That consistent with the City Ordinance that established the RRM process, this Resolution shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2018. SECTION 11. That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LJB Freeway, Suite 1862, 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. The motion to approve this resolution was made by �,� ��,�,�° ��'��' and seconded by �� G�,��-��° yn ,yAey _e; the resolution was passed and approved by the following vote [�"� °' � - _��..�__] , Aye Nay Abstain Absent Chris Watts, Mayor: _ �,�� Gerard Hudspeth, District 1; �� Keely G. Briggs, District 2: __'� Don Duff, District 3: � John Ryan, District 4: � �.�...._..__. Deb Armintor, At Large Place 5: '� Paul Meltzer, At Large Place 6: 3 �� PASSED AND APPROVED this the __� ��, day of +��" ��`��TM��"��..m.m.m.,..�,. ��018. ��,. � ' �° � �� ' � � ��r ��.........�� .... ................� �.�.....e...µ_.. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY k" I BY: �`�. �m ��,., . �� mm.�. �M�l�� ' ��L T�,) A� "��;� LEGAL FORM: AARON LEAL, CITY ATTORNEY ��""'"�. �.., . BY: ��r.�. � ' .... �"��_.._,,,.. ��_ � � � �! Exhibit A Rate Tariffs Effective October 1, 2018 EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A Exhibit B Pensions and Retiree Medical Benefits EXHIBIT B Exhibit C Amortization of Regulatory Liability EXHIBIT C