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18-16 - OTOWN OF PROSPER, TEXAS ORDINANCE NO. 18-16 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PROSPER, 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 Town of Prosper, Texas ("Town"), is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid -Tex; and WHEREAS, the Town and similarly -situated Mid -Tex municipalities created the Steering Committee of Cities Served by Atmos to efficiently address all rate and service matters associated with delivery of natural gas; and WHEREAS, the Steering Committee formed an Executive Committee to direct legal counsel and to recommend certain specific actions to all aligned Mid -Tex Cities through resolution or ordinance; and WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering Committee and Atmos Mid -Tex that settled the Company's interim rate filing under Section 104.301 of the Texas Utilities Code (a "GRIP" rate case), the Steering Committee and the Company collaboratively developed a Date Review Mechanism ("RRM") Tariff, ultimately authorized by the Town in 2008, that allows for an expedited rate review process as a substitute for the GRIP process; and WHEREAS, the Town 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 Steering Committee's Executive Committee has recently approved a settlement with the Company on the attached RRM Tariff, attached hereto as Exhibit A and incorporated by reference, 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 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 Cities' reasonable expenses associated with RRM Tariff applications; and WHEREAS, the Steering Committee's Executive Committee recommends that all Steering Committee 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, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS, THAT; �_91 x411COTk it All of the above premises are hereby found to be true and correct legislative and factual findings of the Town of Prosper and they are hereby approved and incorporated into the body of this Ordinance as if copied in their entirety. SECTION 2 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 Atmos Mid -Tex shall reimburse the 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 To the extent any resolution or ordinance previously adopted by the Town is inconsistent with this Ordinance, it is hereby repealed. SECTION 5 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. SECTION 6 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 This Ordinance shall become effective from and after its passage. SECTION 8 A copy of this Ordinance shall be seat 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 Mid - ordinance No. 18-16, Page 2 Tex Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701, MASSED AND AFS OVED by the Town Council of the Town of Prosper, Texas, on this the 13th day of Ma�r�� '°��0 .....Ro��iAi APPROVED; '' dep • Ray Smith Mayor S/ ves • '► ATT T� � �'' •' �` Robyn Battle, Town Secretary APPROVED AS TO FORM: Terrence S. Welch, Town Attorney 1 1 Ordinance No. 18-16, Page 3 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID -TESL. DIVISION AS IDENTIFIED IN EXHIBIT A TO THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 04/01/2018 PAGE: 7 Exhibit A Ordinance No. 18-16, Page 4 ACSC Cities Abilene Cleburne Frost Lincoln Park Addison Clyde Gainesville Little Elm Albany College Station Garland Lorena Allen Colleyville Garrett Madisonville Alvarado Colorado City Grand Prairie Malakoff Angus Comanche Grapevine Mansfield Anna Commerce Groesbeck Mckinney Argyle Coolidge Gunter Melissa Arlington Coppell Haltom City Mesquite Aubrey Copperas Cove Harker Heights Midlothian Azle Corinth Haskell Murphy Bedford Crandall Haslet Newark Bellmead Crowley Hewitt Nocona Benbrook Dalworthington Gardens Highland Park North Richland Hills Beverly Hills Denison Highland Village Northlake Blossom Denton Honey Grove Oak Leaf Blue Ridge Desoto Hurst Ovilla Bowie Draper Hutto Palestine Boyd Duncanville Iowa Park Pantego Bridgeport Eastland Irving Paris Brownwood Edgecliff Village Justin Parker Buffalo Emory Kaufman Pecan Hiil Burkburnett Ennis Keene Petrolia Burleson Euless Keller Plano Caddo Mills Everman Kemp Ponder Canton Fairview Kennedale Pottsboro Carrollton Farmers Branch Kerens Prosper Cedar Hill Farmersville Kerrville Quitman Celeste Fate Killeen Red Oak Celina Flower Mound Krum Reno (Parker County) Centerville Forest Hill Lake Worth Rhome Cisco Clarksville Forney Fort Worth Lakeside Lancaster Richardson Richland Frisco Lewisville Richland Hills Ordinance No. 18-16, Page 4 I L. 1 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO Robinson THIS RATE SCHEDULE EFFECTIVE DATE: Bills Rendered on and after 0410112018 __[PAGE: 8 River Oaks Temple Roanoke Terrell Robinson The Colony Rockwall Trophy Club Roscoe Tyler Rowlett University Park Royse City Venus Sachse Vernon Saginaw Waco Sansom Park Watauga Seagoville Waxahachie Sherman Westlake Snyder Westover Hills Southlake Westworth Village Springtown White Settlement Stamford Whitesboro Stephenville Wichita Falls Sulphur Springs Woodway Sweetwater Wylie Ordinance No. 18-16, Page 5