18-429QRDINANCE NO. 18-429
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM
("RRM") AS A SUBSTITUTION FOR THE ANNUAL INTERIM RATE ADJUSTMENT
PROCESS DEFINED BY SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS
NEGOTIATED BETWEEN ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS
MID-TEX" OR "COMPANY") AND THE STEERING COMMITTEE OF CITIES
SERVED BY ATMOS; REQUIRING THE COMPANY TO REIMBURSE CITIES'
REASONABLE RATEMAKING EXPENSES; ADOPTING A SAVINGS CLAUSE;
DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH
THE REQUIREMENTS OF THE OPEN MEETINGS ACT; DECLARING AN
EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE
COMPANY AND LEGAL COUNSEL FOR THE STEERING COMMITTEE.
WHEREAS, the City of Denton, Texas ("City") is a gas utility customer of Atmos Energy
Corp., Mid-Tex Division ("Atmos Mid-Tex"), and a regulatory authority with an interest in the
rates and charges of Atmos Mid-Tex; and
WHEREAS, municipalities served by Atmos Mid-Tex created the Steering Committee of
Cities Served by Atmos ("SCCS Atmos Cities") to efficiently address all rate and service matters
associated with delivery of natural gas; and
WHEREAS, the City is now a member of the SCCS Atmos Cities; and
WHEREAS, SCCS Atmos Cities formed an Executive Committee to direct legal counsel
and to recommend certain specific actions to its members through resolution or ordinance; and
WHEREAS, pursuant to the terms of a November 2007 agreement between the SCCS
Atmos Cities and Atmos Mid-Tex that settled the interim rate filing of Atmos Mid-Tex under
Section 104.301 of the Texas Utilities Code (a "GRIP" rate case), the SCCS Atmos Cities and
Atmos Mid-Tex collaboratively developed a Rate Review Mechanism ("RRM") Tariff, ultimately
authorized by the City in 2008, that allows for an expedited rate review process as a substitute for
the GRIP process; and
WHEREAS, the City has kept some form of a RRM Tariff in place until 2017 when it
adopted an ordinance approving an RRM Tariff filing settlement and specifically calling for
termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff following
the Railroad Commission's decision in a then-pending Atmos Texas Pipeline case (GUD No.
10580); and
WHEREAS, the SCCS Atmos Cities' Executive Committee has recently approved a
settlement with Atmos Mid-Tex on the attached RRM Tariff that contains certain notable
improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate
of return on equity, acceptance of certain expense adjustments made by the Railroad Commission
1
in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM
Tariff application; and
WHEREAS, the RRM Tariff contemplates reimbursement of SCCS Atmos Cities'
reasonable expenses associated with RRM Tariff applications; and
WHEREAS, the SCCS Atmos Cities' Executive Committee recommends that all its
member cities adopt this ordinance and the attached RRM Tariff; and
WHEREAS, the attached RRM Tariff is just, reasonable and in the public interest; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS:
a`���t����� �. That the findings set forth in this Ordinance are hereby in all things approved,
Section 2. That the attached RRM Tariff re-establishing a form of Rate Review
Mechanism is just and reasonable and in the public interest, and is hereby adopted.
Section 3. That Atmos Mid-Tex shall reimburse the SCCS Atmos Cities' reasonable
expenses associated with adoption of this Ordinance and the attached RRM Tariff and in
processing future RRM Tariff applications filed pursuant to the attached tariff.
Section 4. That to the extent any resolution or ordinance previously adopted by the City
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 Government Code,
Chapter 551.
"ti�ctr��r� ��. That if any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provisions of this Ordinance , and the remaining provisions of this 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,
�c�c:t����� �. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation, Mid-Tex
Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General
Counsel to SCCS Atmos Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress
Avenue, Suite 1900, Austin, Texas 78701.
2
PASSED AND APPROVED this � � "� �� �'���"'��� da of � ��';;�'°"''"�' � ° �" � �� �'�''�,W
����__....._. Y �. �. � � � .�........��_ , 2018.
� � °°" � . �.. ������.�� �
�� � � ,�..
_ � �_a_. ����������........_W..�.
CHRIS WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
: ��
° ����� ,� ����"�� LEGAL FORM:
LEAL, CITY ATTORNEY
BY: � „�f�'
K3