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Ord 716 Approving a negotiated Settlement between the Atmos Cities! Cis, 1!' 1 ■, ! i. 1 i' ! 1 1 11 i '• !` C 1 1 i • ' ! C 1 '' !' C ' ' " ! P' Rol CR 11 IONIC[ WHEREAS, the Town of Westlake, 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 is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of approximately 164 similarly situated cities served by Atmos Mid -Tex that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid -Tex service area; and WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to develop a Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process controlled in a three-year experiment by ACSC Cities as a substitute to the current Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature; and WHEREAS, the Town took action in 2008 to approve a Settlement Agreement with Atmos Mid - Tex resolving the Company's 2007 rate case and authorizing the RRM tariff, and WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff process for an additional five years; and WHEREAS, the Town passed an ordinance renewing the RRM tariff process for the Town for an additional five years; and WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities' reasonable expenses associated with RRM applications; and WHEREAS, on or about July 15, 2013, the Company filed with the Town its first annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates by $22.7 million; and Ordinance 716 Pagel of 3 WHEREAS, ACSC coordinated its review of Atmos Mid-Tex's RRM filing through its Executive Committee, assisted by ACSC attorneys and consultants, to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve the attached rate tariffs ("Attachment A" to this Ordinance), which will increase the Company's revenues by $16.6 million; and WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest; NOW, THEREFORE, DE IT ORDAINED BY THE TOWN COUNCIL, OF THE TOWN OF WESTL.AKE, TEXAS: SECTION l: That the findings set forth in this Ordinance are hereby in all things approved. SECTION 2: That the Town Council finds the existing rates for natural gas service provided by Atmos Mid -Tex are unreasonable and new tariffs which are attached hereto and incorporated herein as Attachment A, are just and reasonable and are hereby adopted. SECTION 3: That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC Cities in processing the Company's RRM application. SECTION 4: That to the extent any resolution or ordinance previously adopted by the Council 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. SECTION 6: 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 the Ordinance shall be interpreted as if the offending section or clause never existed. SECTION 7: That if ACSC determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in Atmos' 2013 RRM filing would be more beneficial to the ACSC Cities than the terms of the attached tariffs, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally and automatically accrue to the ACSC Cities, including the Town, without the need for Town to take any further action. If this automatic adjustment occurs, Atmos Mid -Tex shall promptly thereafter file with the Town an amended tariff documenting the adjustment to rates. SECTION 8: That this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after November 1, 2013. SECTION 9: That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. Ordinance 716 Page 2 of 3 SECTION 10: It is hereby declared to be the intention of the Town Council of the Town of Westlake, Texas, that sections, paragraphs, clauses and phrases of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared legally invalid or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such legal invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this Ordinance since the same would have been enacted by the Town Council of the Town of Westlake without the incorporation in this Ordinance of any such legally invalid or unconstitutional, phrase, sentence, paragraph or section. SECTION 11: This ordinance shall take effect immediately from and after its passage as the law in such case provides. ATTEST: 9 Kelly dward Town Secretary Laura Wheat, Mayor Thomas E. ie Town Manager Ordinance 716 Page 3 of 3 A •Mid -Tex Effective November 1, 2013 Attachment A Ordinance 716 Page 1 of 9 MID-TEX DIVISION RATE SCHEDULE: R — RESIDENTIAL SALES Customer Charge per Bill ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPO RATED AREAS EFFECTIVE DATE: Bills Rendered on or after 11/0112013 Commodity Charge — All Ccf Application Applicable to Residential Customers for all natural gas provided at one Pont of Delivery and measured through one meter. Type mKService Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and apao|a| contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be oak:u|ahad by adding the following Customer and Ccfohorgem to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 17.70 per month Rider CEE Surcharge $ 0.02 per month' Total Customer Charge $ 17.72 per month Commodity Charge — All Ccf $0.05831 per Ccf Gas Cost Recovery-, Plus an amount for gas costs and upstream transportationcosts calculated inaccordance with Part (a)and Part (b), respectively, ofRider GCHL Weather Normalization Plus or Minus an amount for weather normalization calculated inaccordance with Rider VVNA. Franchise Fee Plus mnamount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate Umdo of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus anamount for surcharges calculated inaccordance with the applicable rider(s). Agreement AnAgreement for Gas Service may borequired. Notice Service hereunder and the rates for services provided are subjectto the orders of regulatory bodies having jurisdiction and hothe Company's Tariff for Gas Service, 1 Reference Rider CEE - Conservation And Energy Efficiency as approved in GUD 10170. Surcharge billing effective July tum3. Attachment x Ordinance 716 Page 2o,o MID-TEX DIVISION I RATE SCHEDULE: C — COMMERCIAL SALES Customer Charge per Bill 19=171 m Z 111157,91:45 a R PER k APPLICABLE TO: jkyj N S1 1] 0 111 Loiel gwAl V:4 Iff-ja EFFECTIVE DATE: Bills Rendered on or after 1110112013 Commodity Charge — All Ccf Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf, Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 35.76 per month Rider CEE Surcharge $ 0.10 per month' Total Customer Charge $ 35.86 per month Commodity Charge — All Ccf $ 0.06893 per Ccf Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. I Reference Rider CEE - Conservation And Energy Efficiency as approved In GUD 10170. Surcharge billing effective July 1, 2013. Attachment A Ordinance 716 Page 3 of 9 MID-TEX DIVISION RATE SCHEDULE: I — INDUSTRIAL SALES Customer Charge per Meter ALL CUSTOMERS INTHE MID-TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS IIII I �, EFFECTIVE DATE: Bills Rendered on or after 11/01/2013 —_ Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Meter $ 620.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.2565 per MMBtu Next 3,500 MMBtu $ 0.1879 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0403 per MMBtu Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Franchise Fee Adjustment: Pius an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Plaits Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company Will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Attachment A Ordinance 716 Page 4 of 9 MID-TEX DIVISION F - I RATE SCHEDULE: I — INDUSTRIAL SALES 14 111501113 • RIM I R 1:1111111 ism IT41 Il kyl M 161,111IT701 • • TO: EFFECTIVE DATE: Bills Rendered on •, after 1110112013 Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate 1, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Attachment A Ordinance 716 Page 5 of 9 FA L[1414=101:4 Application Applicable, in the event that Company has entered into aTranepmrhshon Agreement, too customer directly connected bzthe Atmos Energy Corp., K0id'Twm Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent edone Point of Delivery for use in Customers facility. Type of Service Where service of the type desired by Customer isnot already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will becalculated by adding the following Customer and MM8tucharges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 620.00 per month APPLICABLE TO: 1111144;1*0111 W�c M;=t Application Applicable, in the event that Company has entered into aTranepmrhshon Agreement, too customer directly connected bzthe Atmos Energy Corp., K0id'Twm Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent edone Point of Delivery for use in Customers facility. Type of Service Where service of the type desired by Customer isnot already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will becalculated by adding the following Customer and MM8tucharges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 620.00 per month Next 3,500 MMBtu $ 0,1879 per MMBtu Upstream Transportation Coot Plus an amount for upstream transportation costs in accordance with Part (b) of Rider GCR. Retention Adjustment: Plus aquantity ofgas oscalculated |naccordance with Rider RA. Franchise Fee Adjustment Plus emamount for franchise fees calculated inaccordance with Ride FF Rider FF is only epp|kzabka to cumbznnerm inside the corporate Annit* of any incorporated Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. SPlus enamount for surcharges calculated inaccordance with the applicable rider(s). Imbalance Fees All fees charged on the quantities determined under the hky Transportation Agreement and quantities will not bmaggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater uf(i)$O1Uper K8K8Btuur(N150Y6cfthe difference per MMBbu between the highest and lowest 'midpoint' price for the Katy point listed in +Ymtto Gas Daily /n the table entitled "Daily Prima Sunxav^ during such month, for the K8KHBtu of Customers monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 1O%ofCustomer's receipt quantities for the month. Attachment x Ordinance 716 Page nme MID-TEX DIVISION • • Mr" W1,1"fis RISI ATE SCHEDULE: T —TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY •. DALLAS AND UNINCORPORATED III EFFECTIVE DATE: Bills Rendered on or after 11101/2013 Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Attachment A Ordinance 716 Page 7 of 9 ,. , EDIVISION Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adius� tment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri (BLi + (HSFi x ADD) ) Where i - any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classification. HSFi = heat sensitive factor for the ith schedule or classification divided by the average bill count in that class NDD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: Where qq is the relevant sales quantity for the jth customer in ith rate schedule. Attachment A Ordinance 716 Page 8 of 9 WEATHER NORMALIZATION Afr, !,Y APPLICABLE I EFFECTIVE DATE: Bills Rendered on or 11/011/2013 Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adius� tment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri (BLi + (HSFi x ADD) ) Where i - any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classification. HSFi = heat sensitive factor for the ith schedule or classification divided by the average bill count in that class NDD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: Where qq is the relevant sales quantity for the jth customer in ith rate schedule. Attachment A Ordinance 716 Page 8 of 9 MID-TEX DIVISION Weather Station Abilene Austin Dallas Waco Wichita Falls Base Use/Heat Use Factors Residential WNA —WEATHER NORMALIZATION ADJUSTMENT Base use Heat use ALL • IN THE MID-TEX DIVISION EXCEPT T E CITY • APPLICABLE • DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered • • after 1110112013 0.1262 Weather Station Abilene Austin Dallas Waco Wichita Falls Base Use/Heat Use Factors Residential Base use Heat use Ccf Ccf/HDD 9.97 0.1318 11.05 0.1262 13.13 0.1832 9.78 0.1262 10.99 0.1297 Weather Normalization Adiustment (WNA) Report Commercial Base use Heat use Ccf Ccf/HDD 96.50 0.5659 189.59 0.7195 171.84 0.8797 117.60 0.5774 107.70 0.5041 On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx­wna, in Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the company files one hard copy and a Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division. Attachment A Ordinance 716 Page 9 of 9