HomeMy WebLinkAboutOrdinances (O-06-1571)-05/16/2006
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ORDINANCE 0-06-1571
AN ORDINANCE FINDING THAT THE EXISTING NATURAL GAS DISTRIBUTION
RATES OF ATMOS MID-TEX SHOULD BE REDUCED; ORDERING ATMOS
ENERGY CORP., MID-TEX DIVISION, TO REDUCE ITS EXISTING RATES WITHIN
THE CITY; ADOPTING SPECIFIC NEW RATES R, T & C AND ORDERING ALL
RATES, SERVICE CHARGES AND TARIFF LANGUAGE NOT INCONSISTENT WITH
ATTACHMENT 1 TO REMAIN OPERATIVE EXCEPT THAT ALL GRIP
SURCHARGES SHALL IMMEDIATELY CEASE; AND ORDAINING OTHER
PROVISIONS RELATED TO THE SUBJECT MATTER HEREOF
WHEREAS, the City of Colleyville, Texas (City) is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") and has original jurisdiction over the gas
utility rates of Atmos Energy Corp., Mid-Tex Division (the "Company"); and
WHEREAS, the City has the authority under 99 103.001 and 104.151, GURA, to initiate
a proceeding to determine whether the existing rates of a gas utility are
unreasonable or in any way in violation of any provision of law; and
WHEREAS, the City previously authorized participation with the Atmos Cities Steering
Committee (ACSC); and
WHEREAS, on November 11, 2005, the City ordered the Company to show cause
regarding the reasonableness of its existing natural gas distribution rates
within the City; and
WHEREAS, the Company filed its rate filing package with the City on or about
December 31,2005; and
WHEREAS, the City's representatives obtained additional information from the
Company through written requests for information; and
WHEREAS, the City's consultants and representatives through cooperative efforts
under the direction of the ACSC have reviewed the rate filing package and
responses to information requests and have made a recommendation to
the City regarding the rates to be charged by the Company within the City;
and
WHEREAS, on May 2, 2006, a public hearing was held, at which time the Company
was given an opportunity to address the City Council regarding its current
rates; and
WHEREAS, GURA 9 104.151(a) provides that if a regulatory authority, on its own
motion or on complaint by an affected person, after reasonable notice and
hearing, finds that the existing rates of a gas utility for a service are
unreasonable or in violation of law, the regulatory authority shall enter an
Ordinance 0-06-1571
Page 2 of 4
order establishing the just and reasonable rates to be observed thereafter,
and serve a copy of the order on the gas utility; and
WHEREAS, GURA 9 104.151 (b) provides that the rates thus ordered by the regulatory
authority constitute the legal rates of the gas utility until changed as
provided by GURA; and
WHEREAS, after affording reasonable notice and hearing to the Company, it is the
City's opinion that the Company's current rates are not reasonable; and
WHEREAS, based upon such hearing, the briefing of staff, and the consultants'
findings, the City has made a determination of the reasonableness of the
existing rates of the Company, and has determined just and reasonable
rates to be hereafter observed and enforced for all services of the
Company within the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1.
THAT the Company was given reasonable notice of the hearing held on
May 2, 2006, and the Company had a reasonable opportunity to show to
the City that its rates were just and reasonable.
Sec. 2.
THAT the Company failed to show that its existing rates are just or
reasonable.
Sec. 3.
THAT the rates set forth on Attachment "A" to this Ordinance, which
attachment shall be incorporated as if it were fully set forth herein, are just
and reasonable rates:
a. The rates set forth in Attachment "A" establish the Company's overall
revenues at an amount that will permit the Company a reasonable
opportunity to earn a reasonable return on its invested capital used and
useful in providing service to the public in excess of the Company's
reasonable and necessary operating expenses, in compliance with GURA
9104.051; and
b. The rates set forth in Attachment "A" do not yield more than a fair
return on the adjusted value of invested capital used and useful in
providing service to the public, in compliance with GURA 9 104.052.
Sec. 4. THAT the Company shall immediately begin charging the rates set forth
on Attachment "A" hereto, and shall, pursuant to GURA 9 104.301,
Sec. 5.
Sec. 6.
Sec. 7.
Sec. 8.
Sec. 9.
Sec. 10.
Ordinance 0-06-1571
Page 3 of 4
immediately cease the imposition and collection of all Gas Reliability
Infrastructure Program ("GRIP") surcharges.
THAT the existing rates, service charges and tariff language not
inconsistent with Section 4 and Attachment 1 shall remain operative.
THAT the City is authorized to intervene in any appeal of the City's action
filed at the Railroad Commission of Texas and to otherwise participate in
any litigation associated with the Company's rates charged in the City, in
conjunction with the ACSC.
THAT the Company shall promptly reimburse ACSC for ratemaking costs
associated with the City's activities related to the show cause proceeding,
including appeals to the Railroad Commission or Courts, in accordance
with GURA 9103.022.
THAT a copy of this Ordinance shall be sent to the Company, care of
Richard 1. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite
1800, Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC,
at Lloyd Gosselink, P.O. Box 1725, Austin, Texas 78767-1725.
THAT this Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
THAT it is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and that
public notice of the time, place and purpose of said meeting was given as
required.
AND IT IS SO ORDERED.
The first reading and public hearing being conducted on the ~a{ day of
T>7~ 2006.
The second reading and public hearing being conducted on the /~ ~ day of
Y?7~ 2006.
ATTEST: ~ _
cn~~)L/7~
Cynthia Singleton, TRMC
City Secretary
CITY OF COLLEYVILLE
IbrLA~J1(
David Kelly {/
Mayor
Ordinance 0-06-1571
Page 4 of 4
APPROVED AS TO FORM AND LEGALITY:
~ tn.fS"
Matthew C. G. Boyle
City Attorney
Attachment A
Atmos Energy Corp., Mid-Tex Division
Ordered Rates
Line Ordered
No. Rate R . Summary Rates
1 Customer Charge $ 7.50
2
3 Block 1 Commodity Rate (0-3 Met) $ 1.1915 per Met
4 Block 2 Commodity Rate (over 3 Met) 0.9415 per Met
5
6 Average Monthly Bill (6 Met without Gas Cost) $ 14.72 per Month
7
8 Average Monthly Bill (6 Met with Gas Cost) $ 34.75 per Month
9
10
11
Ordered
12 Rate C - Summary Rates
13
14 Customer Charge $ 12.50
15
16 Block 1 Commodity Rate (0-30 Met) $ 0.7417 per Met
17 Block 2 Commodity Rate (30-350 Met) $ 0.4917 per Met
18 Block 3 Commodity Rate (Over 350 Met) $ 0.2417 per Met
19
20 Average Monthly Bill (30 Met without Gas Cost) $ 36.76 per Month
21
22 Average Monthly Bill (30 Met with Gas Cost) $ 136.78 per Month
23
24
25
Ordered
26 Rate T - Summary Rates
27
28 Customer Charge $ 300.00
29
30 Block 1 Commodity Rate (0-1,500 MMBtu) $ 0.4977 per MMBtu
31 Block 2 Commodity Rate (Next 3,500 MMBtu) $ 0.3477 per MMBtu
32 Block 3 Commodity Rate (Next 45,000 MMBtu) $ 0.1977 per MMBtu
33 Block 4 Commodity Rate (Over 50,000 MMBtu) $ 0.0477 per MMBtu
34
35 Average Monthly Bill (300 MMBtu without gas cost) $ 475.07 per Month
36
37 Average Monthly Bill (300 MMBtu with gas cost) $ 1,474.93 per Month