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HomeMy WebLinkAboutOrdinance 18760-08-2009ORDINANCE NO 18760-08-2009 AN ORDINANCE ESTABLISHING MAXIMUM PERMITTED RATES AND CHARGES THAT ATMOS ENERGY CORP MID-TEX DIVISION MAY ASSESS CUSTOMERS IN THE CITY OF FORT WORTH, APPROVING AND RATIFYING A RELATED SETTLEMENT AND RESOLUTION BETWEEN ATMOS ENERGY CORP MID-TEX DIVISION AND THE ATMOS CITIES STEERING COMMITTEE, OF WHICH THE CITY IS A MEMBER, ADOPTING DECLARATIONS AND FINDINGS RELATED TO RATES AND CHARGES ASSESSED TO CUSTOMERS IN THE CITY OF FORT WORTH, REPEALING ANY PREVIOUSLY ADOPTED ORDINANCES IN CONFLICT HEREWITH, PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on May 16 2006 the City Council adopted Resolution No 3348-OS-2006 authorizing participation by the Crty of Fort Worth (the `City") m the Atmos Cities Steering Committee (the `Steering Committee") for assistance m rate cases involving Atmos Energy Corp Mid Tex Division ("Atmos"), including the retention of consultants and outside legal counsel associated with such assistance and WHEREAS, on September 20 2007 Atmos filed with the Crty Secretary a `Statement of Intent to Increase Gas Utility Rates" (the `2007 Rate Filing") under which proposed increased rates charged by Atmos would go into effect m the City on October 25 2007 and WHEREAS, on February 19 2008 the Crty Council adopted Ordinance No 17989-02 2008 approving a Settlement Agreement between Atmos and the Steenng Agreement as to disputed matters m the 2007 Rate Filing and certain other matters identified m that Ordinance, including, but not limited to two previous rate cases (styled GUD No 9400 and GUD No 9670), which were then pending on appeal m the Travis County District Court from orders by the Railroad Commission, as well as continuing disagreement, disputes, and litigation over the application of and basis for Gas Reliability Infrastructure Program (GRIP) surcharges, as provided in Section 104 301 of the Texas Utilities Code (the `Settlement Agreement") and Page 1 of 6 Atmos RRM Ordinance (2009) WHEREAS, in accordance with the Settlement Agreement, pursuant to Ordinance No 17989-02 2008 the City Council established maximum permitted rates and charges that Atmos could charge customers m the City m lieu of the then-existing rates and the rates proposed m the 2007 Rate Filing and approved an expedited rate review mechanism ("RRM") for future rate proceedings involving Atmos for at least the next three (3) years, and WHEREAS, in accordance with the process outlined in the Settlement Agreement, on or about March 6 2009 Atmos filed with the City rts second application pursuant to the RRM tariff to increase natural gas rates by approximately $20.2 million (the `2009 RRM Filing"), such increase to be effective in every mumcipalrty that adopted the RRM tariff as part of their approval of the Settlement Agreement; and WHEREAS, the Steering Committee and its lawyers and consultants have reviewed the 2009 RRM Filing and concluded that the evidence provided by Atmos m support of rts 2009 RRM Filing does not Justify the proposed rate increase; and WHEREAS, on the basis of the review and analysis of Atmos s 2009 RRM Filing undertaken by the Steering Committee s lawyers and consultants, the Steering Committee s executive committee has recommended that the City Council adopt the rate tariffs attached hereto as Attachment A which is hereby made a part of this Ordinance for all purposes, resulting m an increase of approximately $2 6 million m Atmos s revenue requirements m all mumcipalrties that adopted the RRM tariff as part of their approval of the Settlement Agreement; and WHEREAS, the attached tariffs implementing new rates and Atmos s proof of revenues, as set forth in Attachment `B", which is hereby made a part of this Ordinance. for all purposes, Page 2 of 6 Atmos RRM Ordinance (2009) are consistent with the Settlement Agreement and negotiated resolution reached by and between Atmos and the Steering Committee; and WHEREAS, rt is the intention of the parties to the Settlement Agreement that the City receive the benefit of any other settlement agreement that Atmos enters into with other entities arising out of rts RRM filing or any associated appeals entered by the Railroad Commission of Texas regarding Atmos s request to increase rates, with acknowledgment by the City that the exercise of this right is conditioned upon the City's acceptance of all rates, revenues, terms and conditions of any other settlement agreement or associated appeals arising out of such filing in toto and WHEREAS, the negotiated resolution of the 2009 RRM Filing and the resulting rates are, as a whole, m the public interest; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Section 1 FINDINGS. That the Crty Council, pursuant to rts exclusive original jurisdictional authority over the rates, operations, and services of Atmos within the City and m the exercise of its sound legislative discretion, makes the following findings of fact. 1 1 The statements set forth in the Recitals above are true and correct and are hereby incorporated as part of the findings herein. Page 3 of 6 Atmos RRM Ordinance (2009) 1.2. Based on all information previously provided to and before the City Council, the City Council hereby finds that the rates proposed by Atmos m its 2009 RRM Filing are unreasonable. 1:3 The tariffs attached hereto as Attachment A and Atmos s proof of revenues attached hereto as Attachment ~B" are dust and reasonable and m the public interest. Section 2 RATES AND CHARGES ORDERED That based on the findings of fact set forth in Section 1 of this Ordinance and all other information before the City Council, Atmos is hereby authorized and ordered to implement the tariffs attached hereto as Attachment A Section 3. RESERVATION OF RIGHTS. That notwithstanding anything to the contrary herein, if the Crty determines that any rates, revenues, terms and conditions, or benefits resulting from a final order or subsequent negotiated settlement approved in any proceeding involving Atmos s RRM filing would be more beneficial to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City Exercise of this right is conditioned upon the City's acceptance of all rates, revenues, terms, and conditions of any other settlement agreement or associated appeals arising out of such RRM filing in toto Page 4 of 6 Atmos RRM Ordinance (2009) Section 4. REPEAL OF ORDINANCES IN DIRECT CONFLICT That if any provisions or conditions of this Ordinance directly conflict with any provisions or conditions of other Ordinances previously adopted by the City Council, the conflicting provisions of such previously adopted Ordinances are hereby repealed. Section 5. COMPLIANCE WITH OPEN MEETINGS ACT REQUIREMENTS. That the meeting m which this Ordinance was adopted was in all things conducted in stnct compliance with the Texas Open Meetings Act, as codified at Chapter 551 Texas Government Code. Section 6. SEVERABILITY That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent ~unsdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and remain m full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. Page 5 of 6 Atmos RRM Ordinance (2009) Section 7 EFFECTIVE DATE. That this Ordinance shall take effect and be m full force and effect from and after the date of its adoption. The City Secretary is hereby directed to deliver a certified copy of this Ordinance to Atmos, care of David Park, Vice President Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway Suite 1800 Dallas, TX 75240 and to the Steering Committee s outside legal counsel, Geoffrey Gay Lloyd Gosselmk Rochelle & Townsend, P C P O Box 1725 Austin, TX 78767 1725 AND IT IS SO ORDAINED ADOPTED AND EFFECTIVE August 18, 2009 APPROVED AS TO FORM AND LEGALITY By Peter Vaky Assistant City Attorney Date: ~- / 9 0 9 Page 6 of 6 Atmos RRM Ordinance (2009) N~. ~~'''. ORDINANCE NO 18760-08-2009 r Al`M08 ENERGY CORPORATION MID-TEX OMSION Attachment A REVISION NO: Q RATE SCHEDULE: R -RESIDENTIAL SALES APPLICABLE TO: AN Cfilee designated ae "Group A" on the Cldea Served List EFFECTIVE OATS: Bills Rendered on or atRer.Ottl01/21Ia9 PAGE: 28 Applkatbn Applicable to Residential Customers for all natural gas provided at one Point o1 Delivery and measured through one meter Type of Servke Where servlce of the type desired by Customer is not already available at the Point of Oellvery additional charges and spatial contract arrangements between Company and Customer may be required prbr to servlce being /umished. Monthly Rab Customers monthly bill will be calculated by adding the following Customer and Mct charges to the amounts due under the riders listed below: Charge Anwun't Customer Charge per Bill S 7.00 per r-mnth Commodity Charge - A11 Mcf 52.2707 per Mcf Gas Cost Recovery• Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively of Rkier GCR. Weather Normalization Adjustment Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment Plus an amount for franchise tees 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 Servfoe hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdlction and to the Company's Tariff for Gas Service. {ssued By Oavid J. Park vice President, Rates and Regulatory Affairs Dsts hsued: ORDINANCE NO 18760-08-2009 Attachment A ATMOS ENERGY CORPORATION MID-TEX ONISION REVISION NO: Q RATE SCHEDULE: C - COMMERCIAL. SALES APPLICABLE. TO• All Clues destpnated as 'Group A on the Cltiss Served List EFFECTNE GATE: Bllb Rendered on or after 08/01/2004 PAGE: 30 Applkattor~ Applicable to Commercial Customers for alt 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 3,000 Mcf. 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 anangemenb between Company and Customer may be required prior to service being famished. Monthly Rate Customer's monthly bill will be ca~ulated by adding the following Customer and Mcf charges to the amounb due under the riders listed below Chsrp~ Amount Customer Charge per Bill S 13.50 per month Commodity Charge All Mcf 3 0.9877 per Md Gas Cost Recovery• Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectivey of Rider GCR. Weather Normalization Adjustment Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. 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 ca~ulated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider{s). Agreement An Agreement far Gas Service may be required. Notke 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 Gaa Service. ~_~. :~~:'=. Issued ey• David J Parts V"ice President. Rates and Regulatory Affairs j Date Issued: ORDINANCE NO 18760-08-2009 Attachment A ATMOS ENERGY CORPORATION ~~ MID-TEX DMSION REVISION NO: Q ,~° RATE SCHEDULE: I -INDUSTRIAL SALES APPLICABLE T0: All Civss deslpnattsd as "group A on thfa CIUa Served Llat EFFECTNE DATE: Bills Rendered on or otter t38f011200s PAGE: 91 Applkatlon 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 MMStu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customec Type of S~rvk~ vVhere service of the type desired by Customer Is not already available at the Paint of Delivery additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rob Customers monthly biU 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 S 425.00 per month First 0 MMt3tu to 1 500 MMBtu S 0.2583 per MMBtu Next 3,500 MMt3tu S 0.1884 per MMBtu All MMBtu over 5,000 MMBtu Z 0.0404 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. Rate Review Mechanism: Plus or Minus an amount for rates as calculated In accordance with Rider RRM. Frenchlse Foe 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 appiicable ider(s). Curtailment Ovsrpufl Fey Upon notification by Company of an event of curtailment or interruption of Customers deliveries, Customer will, for each MMt3tu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed Platfs Gas Daily published for the applicable Gaa Day in the table ntitled 'Daily Price Survey Issued By• David J. Park vice President, Rates and Regulatory Affairs Date Issued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORPORATION MtD-TEX DNISION Attachment A ~,v. REVISION NO' Q `~'' RATE SCHEDULE: 1- INDUSTRWL SALES APPIICAHLE TO: All Cities desl~nated as 'Group A on the Cities Served Llst EFFECTNE DATE: Bllb Rendered on or after 08101!2008 PAGE: 3Z Replacement Index In tfie event the "midpoint or common' price for the Katy point listed in Plaits Gas Da11y in the table entitled 'Dally PrlCe Survey' is no longer published, Company will ca~ulate the applicable imbalance tees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximatlng the applicable index. 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 Cond{tlons In order to receive service under Rate I, 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 ~-e Issued ey• David J Park Vice President, Rates and Regulatory Affairs ~. Date bsued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORPORATION MID-TEX DMSION yryii ~~ ~(., Attachment A REYIStON NO• D RATE SCHEDULE: T -TRANSPORTATION APPLICABLE T0: All Cktes deslSnated as "Group A on the Clttes 5efved List EFFECTIVE DATE: Btlls Rendered on or afitar 08/01JZ00! PAt3E: 33 Application Applicable, the event that Company has entered nto a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp. Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use Customer's facility 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 famished. Monthly Rab Customers bill will be ca~ulated by adding the following Customer and MM6tu charges to the amounts and quantities due under the riders listed below ~ Charye Amount Customer Charge per Meter S 425.00 per month First 0 MMBtu to 1 500 MMBtu i 0.2583 per MMBtu Next 3,500 MMi'3tu s 0.1884 per MMBtu All MMBtu over 5,000 MMBtu S 0.0404 per MMBtu Upstream Transportation Cost Recovery Plus an amount for upstream transportation costs in accordance with Part {b) of Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as caculated accordance with Rider RRM. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated accordance with Rider FF Rider FF is only applicable to customers inside the corporate limits of any ncorporated municipality Tax Adjustment: Plus an amount for tax cakulated accordance with Rider TAX. Surcharges: Plus an amount for surcharges cak:ulated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such tees. ~~ Issued ey• David J Park Vice President, Rates and Regulatory Affairs ;,, Date Issued: ORDINANCE NO 18760-08-2009 Attachment A ATMOS IENERGY CORPORATION _ MID-TEX OM310N REVISION N0: Q RATE SCHEDULE: T -TRANSPORTATION APPLICABLE TO: All Gilles deslynsted as "Group A on the Gilles Served Lbt EFFECTNE DATE: Bilb Rendered on or after 08/01!2008 PAGE: 34 Mouthy Imbalance Fees Customer shall pay Company the greater of (i) 50.10 per MMBtu, or (ii) 15096 of the difference per MMBtu between the highest and lowest "midpoint price for the Katy point listed in Plaits Gas Daily in the table entitled 'Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbe~nce, as dented in the applicable Transportation Agreement, at the end of each month that exceeds 1096 of Customer`s receipt quantities for the month. CurtallmeM 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 intemrptbn, pay Company 20096 of the midpoint price for the Katy point listed in Plaits Gas Dally published for the applipble Gas Day in the table entitled'Daily Price Survey. Replacement Index In the event the "midpoinC or "common' price for the Katy point listed In Plaits Gas Daily in the table entitled "Daily Price Survey' is no bnger published, Company will ca~ulate the applyable 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. Notke Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff br Gas Service. Special Condltlons 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 Issued By• David J. Park Vice President, Rates and Regulatory Affairs Date issued: ORDINANCE NO 18760-08-2009 Attachment A AT111108 ENERGY CORPORATION MID-TEX OMSION REVISION NO: Q RIDER: ti'YNA - tNEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO' All Cittes designated as "Group A on the Cfties Served List EFFECTNE DATE: Bllh Rendered on or at'ter 06/01/2005 PAGE: +t3 Provisions for Adjustment l;~ The base rate per MM (1,000,000 Btu) for gas service set forth in any Rate Schedules utilized by the cities of the Mld•Tex Division service area for detemnining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment The Weather Normalizatbn Adjustment shah apply to all temperature sensitive residential, and commercial bills based on meters read during the revenue months of November through April. The five regbnal weather statbns aro Abilene, Austin, Dallas, Waco, and Wichita Falls. Comoutation of Wg~thet Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Mcf by the following formula: WNAFi RI (HSFi (NDD-ADO) ) Where (Bt.i (HSFi x ADD) ) 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 i~ rate schedule or classification expressed in cents per MCf Ri base rate of temperature sensitive sales for the i~ schedule or classification approved by the entity exercising original jurisdiction. HSFi heat sensitive factor for the i~ schedule or classificatbn calculated as the slope of the linear regression of average salsa per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RR M filing. NOD 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 i~ schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather staton as part of the RRM filing. The Weather NormaUzation Adjustment for the jth customer in ith rate schedule is computed as: r3~ Issued By• David J Park Vice President, Rates and Regulatory Affairs •• Dats Issued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORPORATION IIIOD-TIX DMSION Attachment A REVISION NO: Q RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: Ali Cities designated as `Group A" on the Cities 3srvsd Ltst EFFECTIVE DATE: Bilb Rsndend on or after 08/01/2009 PAGE: 48 WNA, WNAFi x qo Where qp is the relevant sales quantity for the jth customer in ith rate schedule. Fi i q~•ytj~~ntities Exercising Original Jurisdiction As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather Normalization Adjustment Factor (b) a schedule showing the effective date of each such Weather Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such Weather Normalizatlon Adjustment and (d) a random sample and audit of thirty (30) actual customer bills, with cuatomer information deleted, for each rate schedule or classification to which the WNA was applied in the preceding 12 month period. To the extent that source data is Wearied to audit the WNA application, such data will be provided by the Company as part of the annual RRM filing. ff the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be filed with the entities exercising original jurisdiction shall be filed on March 1 of each year Base Use/Heat Use Factors Residential Commercial Base use Heat use ease use Heat use ~~~e,~~e, c.~.;,... u..~ iu,~runn ~ iurtiNnn Abilene 0.98 0140 9.64 0829 Austin 1 30 0161 20 00 0815 Daf lea 1.60 0212 20.12 1018 Waco 112 0139 11.69 0608 Wlchita Falls 1 12 .0159 11.67 0649 S~mole WNAF~Calculation: 3393 per Mcf Where 2.2707 x ( 0140 x (30-17) ) (0.98 (0140 17) ) Residential Single Block Rate Schedule Ri 2.2707 per MCF j. ~, HSFi 0140 (Residential Abilene Area) , Issued ey• David J_ Park Vice President. Rates and Regulatory Affairs Oate Issued: ORDINANCE NO 18760-08-2009 Attachment A Syh,. ATIiAOS ENERGY CORPORATION MID•TEX DMSION REYtS10N NO: Q RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT APPLICABLE T0: Aii Cities designated as 'Group A on the Cities Served Llst EFFECTIVE DATE: Bills Rendered on or after 08/01/200! PAGE: 47 NDD 30 HOD (Simple ten-year average of Actual HDD for Abilene Area 9/15/06 - 10/14/06) ADD 17 HDD (Actual HOD for Abilene Area - 9/15/06 -10/14/06) ~~„;r ~~J Bli = 0 98 Mcf (Residential Abilene Area) ~~"` beued By Oavid J Park Vice President, Rates and Regulatory Affairs ~~ Date beued: ORDINANCE NO 18760-08-2009 ATt1AOS ENERGY CORPORAT~N MID-TEX DMSION Attachment A REVISWN NO: ¢ RIDER: GCR -GAS COST RECOVERY APPLICABLE T0: All Gilles Except Dallas EFFECTIVE DATE: 8fils Rendered on or after 8I1tZt}Oti PAGE: t!d Applicable to Rate R, Rate C, and Rate I for all gas sates made by Company and applicable to Rate R, Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated in Section (b) below The amount due for gas cost (Section (a)) is determined by multiplying the Gas Coat Recovery Factor (GCRF) by the Customers monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will be calculated on a Md bads. For Customers receiving service under Rate I, monthly volume will be calculated on an MMBtu basis and the quantities will lie adjusted as necessary to recover actual gas costs. The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor (PCF) by the Customers monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will tie calculated on an Mcf basis. For Customers receiving service under Rate I and Rate T monthly volume wilt be calculated on an MMl3tu basis and the quantities will be adjusted as necessary to recover actual gas costs. (s) Gas Cost Method of Calculation The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF), as determined with the following formula: GCRF Estimated Gas Cost Factor (EGCF) Reconciliation Factor (RF) Taxes (TXS) EGCF Estimated cost of gas, including lost and unaccounted for gas attributed to residential, commercial, and industrial sales, .and any reconciliation balance of unrecovered gas cosb, divided by the estimated total residential, commercial, and industrial sales. Lost and unaccounted for gas is limited to 5%. RF Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of interest over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed over that same twelve-month period by the estimated total residential, commercial, and industrial sales for the succeeding October through June billing months. The interest rate to be used is the annual nterest rate on overcharges and under charges by a utility as published by the Public Utility Commission each December The nterest rate for calendar year 2009 is 2.0996. Actual Gas Cost Incurred The sum of the rnsts booked in Atmos Energy Corp., Mld-Tex Division account umbers 800 through 813 nd 856 of the FERC Uniform System of Accounts, including the et impact of injecting and wtthdravving pas from storage. Also includes radii a debtt for ny out-of-period adjustments or al or ecurring costs typically considered pas costs and a radii for amounts received as Imbalance Fees or Curtailment Overpull Fees. Also chides ny Issued By• David J Park Vice President, Rates and Regulatory Affairs ,~ Date Issued: ORDINANCE NO 18760-08-2009 Attachment A ~;. =J ATMOS ENERGY CORPORATION MID-1'EX DIVISION REVIS{ON NO: Q RlOER: OCR -GAS COST RECOVERY APPLICABLE T0: All Cities Except Dallas EFFECTNE DATE: Bllb Rendered on or afbr 811!2009 PAGE: 69 prudentty Incurred transaction-related fees, pains or losses and other transaction cosh associated with the use of various financial instruments that are executed by the Company for the purpose of price volatility mitigation. Actual Gas Cost Bfiled EGCF mukiplied by the monthly olumes tHlled to Residential, Commercial and Industrial Sales customers, less the total amount of gas cost determined to have been unwNectible and written off which remain npakt for each month of the reconclllatlon period. Any amount remaining the reconciliation balance after the conclusion of the period of amortization wiN be maintained in the reconaliation balance and included in the collection of the next RF Atmos Energy shall file annual report with the Commission, providing by month the following amounts: Gas Cost Written Oil. Mar~n Written Off, Tax and Other Written Off, Total Written Of/, Gas Cost Collected and Margin Collected. TXS Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by the estimated total residential, commercial, and industrial sales. ADJ Any surcharge or refund ordered by a regulatory authority inclusive of interest, divided by the estimated tote{ residential, commercial, and industrial sales is to be included as a separate line item surcharge. (b) Pipeline Cost Method of Calculation Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class listed below The formula for the PCF is: PCF PP 1 S, where: PP (P A) D where: P Estimated monthly cost of pipeline service calculated pursuant to Rate CGS 0 Pipeline service allocation factor for the rate class as approved in the Company's most recent rate case, as follows: ' Issued ey• Oavid J Park Vice President, Rates and Regulatory Affairs date bsued: ORDINANCE NO 18760-08-2009 Attachment A ATM08 ENERGY CORPORA710N M!D-TEX DMSION REVISION NO: 0 RIDER: GCR -GAS COST RECOVERY APPLICABLE T0: All Citbs Except Osllas EFFECTIVE DATE: Bllb Rendered on or after 8J11Z000 ' PAGE. 70 PI line Cost RaU Ciasa Allocation Factor D Rate R Residential Service 834698 Rate C Commercial Service 302824 Rate I Industrial Service and Rate T Trans lion Service 082478 A Adjustment applied in the current month to correct for the difference between the actual and esdmated pipeline cost revenue of the second preceding month, cak:ulated by the formula: A R (C A2), where: R Actual revenue received from the application of the PP component in the second preceding month. C Actual pipeline costs for the second preceding month. A2 The adjustment (A) applied to the PP component in the second preceding month. S Estimated Mcf or MMBtu for the rate class for the current billing month. ~, The PCF is calculated to the nearest 0.0001 cent. The Pipeline Cost to be billed is determined by mul8plyfng the Mcf or MMBtu used by the appropriate PCF The Pipeline Cost is determined to the nearest whole cent. Issued By• Oavid J Park Vice President, Rates and Regulatory Affairs Date Issued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORPORATION MIO-TEX DMStON Attachment A REVISION NO: Q RIDER: CEE - CONSERVATION b ENERGY EI=FICIENCY APPLICABLE T0: All Clues except Dallas EFFECTNE DATE. Bllb Rendered on or aRer 8N12008 PAGE: 8~ Purvose Atmos Energy Mid-Tex is proposing to institute a complete Conservation 8 Energy Efficiency program which will offer assistance to qualified customer segments in reducing energy consumption and lowering energy utility bills. The proposal is one where Atmos Energy shareholders will fund a percentage of the allowable expenses incurred annually with a customer rate component providing the remainder of the funding. Folkriving is ahigh-level, concept summary of the proposal. Atmos Energy Mid-Tex Dlvisbn proposes to work with the communities it serves to develop the details of a new tariff and programs addressing conservation and energy efficiency Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos Mid-Tex. Qualified Customers will receive up to one thousand five hundred dollars ($1 500.00) worth of caulking, weather-stripping, sheathing, sealing, water heater blankets, related gas plumbing, and like materials, other energy saving devices such as clock-thermostats, set-back devices ("covered items') from approved suppliers 1 retailers including necessary labor Company will undertake efforts to enlist support from community groups, including its own Employee Action Program, to assist customers with installation. If it Is determined that professbnal installation capabilities are necessary the parties will agree on labor assistance amounts. I" i Low Income -Low-income rate-payers that qualify for heating bill assistance through LIHEAP and other government energy efficiency program agencies and all agencies that distribute Atmos "Share the Warmth' funds. Agendas that albcate assistance funds denote customer as low Income, a status that lasts for one year Senior Citizen -Primary account holder can request eligibility through ATM call center or web-site. Customer provides primary SSN which is verified through Social Security Administration. Arid account holder that is or turns 65 years old in that year becomes eligible. Funding Initial annual program funding will tie at two million dollars (32,000,000). Atmos Energy shareholders will contribute one million dollars (31 000,000.00) to Chia illative annually with ratepayers providing one miltbn dollars (S1 000 000 00) per year It is proposed that the program operate on an October 1 through September 30 year with regulatory assetlliability arxounting employed by Atmos to track the difference between program funding and qualifying program expenditures. No Atmos employee labor will be charged as a program expenditure. Administration: A third-party administrator will coordinate qualification of customers, voucher distribution, subsequent verification and reimbursement of eligible expenditures and general program administration. Program administration expenses will be funded from the annual approved budget. Issued By: David J Park vice President, Rates and Regulatory Affairs Date Issued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORPORATION MID-TEX DNISION Attachment A REVISION N0: Q RIDER: CEE - CONSERVATION b ENERGY EFFICIENCY APPLICABLE T0: All Gilles except Dallas EFFECTIVE DATE: Bills Renderod on or aRer 8N12t)0!i PAGE: ti6 Audits will be provided all interested parties within 120 days of the end of each program year to determine effecttvenesa. ~.~ Atmos shall ftle an annual report detailing cost to administer the program including the amounts paid out of the program for energy conversation assistance. The report shall also detail the number of applicants and expenditures by geographic location, including the numbers of applications rejected and accepted and reason if rejected. The report shall be filed with the Director of the Gas Services Division of the Railroad Commissbn within 120 days of the end of each program year and with counsel of record for mun~ipalities served by the Mid-Tex Davison. ~-;;. Issued ey• David J Park vice President, Rates and Regulatory Affairs Date bsued: ORDINANCE NO 18760-08-2009 ATMOS ENERGY CORP MID-TEX DIVISION PROOF OF REVENUES TEST YEAR ENDING DECEMBER 31 2008 (2009 RRM SETTLEMENT PROPOSAL) ATTACHMENT B Line Prospective Total change from No. Description Rate Increase 2008 T up current rates lal (b) (cl Id) 1 Rate R 2 Consumption Charge per MCF 3 Change from Current Rate $0 1047 $0 0060 $0.0297 4 Billing Units for Specified Period 82,321,960 82,321 960 82,321 960 5 Total Change Base Revenue $8,619 109 $493,932 $2,444,962 6 Associated Revenue T 532 144 30 495 150 952 7 Total Rate Impact $9 151 253 $524 427 $2,595 914 8 Number of Bills far Specified Period 17,244 058 17,244 058 17,244 058 9 Average Impact per Bill $0.53 $0.03 $0 15 10 Rate C 11 Consumption Charge per MCF 12 Change from Current Rate $0 0383 $0 0052 $0 0068 13 Billing Units for Specified Period 52,439 100 52,439 100 52,439 100 14 Total Change Base Revenue $2,008,418 $272,683 $356 586 15 Associated Revenue T 124 000 16 83 22 16 16 Total Rate Impact $2,132,417 $289 519 $378,601 17 18 Number of Bills for Specified Period Average Impact per Bill 1 452,943 $1 47 1 452,943 $0.20 1 452,943 $0.26 19 Rates IST 1st block 20 Consumption Charge per MCF 21 Change from Current Rate $0 0144 $0 0087 ($0.0150) 22 Billing Units for Specified Period 9,681 181 9 681 181 9 681 181 23 Total Change Base Revenue $139,409 $84,226 ($145,218) 24 Associated Revenue T 8 60 5 200 8 966 25 Total Rate Impact $148 016 $89 426 ($154 183) 26 Rates IB,T 2nd block 27 Consumption Charge per MCF 28 Change from Current Rate $0 0105 $0 0064 ($0 0109) 29 Billing Units for Specified Period 10,782,882 10,782,882 10 782,882 30 Total Change Base Revenue $113,220 $69 010 ($117 533) 31 Associated Revenue T 56.990 4 261 7 257 32 Total Rate Impact $120,210 $73,271 ($124 790) 33 Rates 18,T 3rd block 34 Consumption Charge per MCF 35 Change from Current Rate $0 0023 $0 0014 ($0 0023) 36 Billing Units for Specified Period 19 798,632 19,798,632 19 798,632 37 Total Change Base Revenue $45 537 $27 718 ($45 537) 38 Associated Revenue T 2 811 1 711 2 811 39 Total Rate Impact $48 348 $29 429 ($48 348) 40 Rates 18T Total 41 Total Rate Impact $316,575 $192,127 ($327 322) 42 Number of Bills for Specified Period 11 571 11 571 11,571 43 Average Impact per Bill $12.79 $7 73 x$13 32) 44 45 Total Change Base Revenue 510,925,693 5947,570 52,493,260 46 Total Rate Impact (inc. Rev T s) 511,600,246 51,006,073 52,847 194 City of Fort Worth, Texas Mayor and Council Communication ~. ~- ~ ~: COUNCIL ACTION: Approved on 8/18/2009. Ord. No. 18760-08-2009 W~ .,.~ , ~ . w- - ~- ~ _~ - ~F ,~ ~~- DATE Tuesday August 18 2009 LOG NAME 02ATMOS RRM REFERENCE NO G-16666 SUBJECT Adopt an Ordinance Establishing Maximum Permitted Rates and Charges that Atmos Energy Corporation Mid-Tex Division May Assess Customers in the City of Fort Worth RECOMMENDATION It is recommended that the City Council adopt the attached ordinance establishing maximum permitted rates and charges that Atmos Energy Corporation Mid-Tex Division may assess customers in the City of Fort Worth pursuant to a negotiated settlement and resolution of Atmos' proposed rate increase under its 2009 rate review mechanism filing DISCUSSION On May 16 2006 the City Council adopted Resolution No 3348-05-06 which authorized participation with other cities in the Atmos Energy Corporation (Atmos) service area. to form a standing steering committee with the authority to act on behalf of its members in any proceeding relating to gas utility regulation (M&C G-15202) This committee is known as the Atmos Cities Steering Committee (the Steering Committee) On September 20 2007 Atmos filed with the City of Fort Worth ("City") a Statement of Intent to Increase Gas Utility Rates within the Incorporated Areas Served by the Mid-Tex Division The Steering Committee and Atmos representatives negotiated an agreement to settle this case that included a provision for an annual rate review The Rate Review Mechanism (RRM) was intended to expedite the rate review process by the cities without costly litigation On February 19 2008 the City Council adopted Ordinance No 17989-02 2008 approving the Settlement Agreement and authorizing the RRM tariff Atmos filed an application to increase natural gas rates pursuant to the RRM tariff with the cities which approved the Settlement Agreement on or about March 6 2009 The application requested approximately $20 2 million in additional revenue The Steering Committee designated a negotiation committee made up of City representatives, which included the City of Fort Worth Regulated Utilities Manager Danny Reed assisted by the Steering .Committee's attorneys and consultants to resolve issues identified in the Company's RRM filing The negotiating committee and Atmos reached an agreement to increase Atmos' revenue requirement by $2 6 million as reflected. in the rate tariffs in Attachment A to the attached ordinance The Steering Committee recommends that its members approve the attached rate tariffs and find that the rates therein are just, reasonable and in the public interest. The following table shows the current and recommended rates RESIDENTIAL PRESENT RECOMMENDED Customer Charge $7 00 $7 0000 Logname 02ATMOS RRM Page 1 of 2 All Mcf $2 24 $2 2707 COMMERCIAL PRESENT RECOMMENDED Customer Charge $13 50 $13 5000 All Mcf $0 98 $0 9877 INDUSTRIAL PRESENT RECOMMENDED Customer Charge $425 00 $425 0000 First 1 500 MMBtu $0.27 $0 2583 Next 3 500 MMBtu $0 20 $0 1884 All over 5 000 MMBtu $0 04 $0 0404 TRANSPORTATION PRESENT RECOMMENDED Customer Charge $425 00 $425 0000 First 1 500 MMBtu $0 27 $0 2583 Next 3 500 MMBtu $0.20 $0 1884 All over 5 000 MMBtu $0 04 $0 0404 Bill comparisons of current, proposed and recommended residential and commercial rates are attached (Exhibits A 1 and A 2) Upon adoption of the attached ordinance the rate schedules set forth in Attachment A of the ordinance will take effect with bills rendered after August 1 2009 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that this action will have no material effect on City funds FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office b~ Originating Department Head Additional Information Contact: Logname• 02ATMOS RRM Fernando Costa (6122) Randle Harwood (6101) Danny Reed (6145) Page 2 of 2