R 611♦ Is • • -vL• • •
ENNEDALE, TEXAS, APPROVING A NEGOTIATED
ETTLEMENT BETWEEN THE ATMOS CITIES STEERING
• ♦ AND ATMOS ENERGY CORP.,
iIVISION REGARDING THE COMPANY'S 2022 RATE REVIEW
11ECHANISM FILING DECLARING EXISTING RATES TO BE
NREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE
not
SETTLEMENT; FINDING THE
•IF
REIMBURSE,,N ATTACHMENT ESTABLISHING A BENCHMARK FOR
ENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING
HE COMPANY TO REASONABLE
ttATEMAKING EXPENSES; DETERMINING THAT THIS
'ESOLUTION WAS PASSED IN ACCORDANCE WITH THS
1EQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT In
DOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE
ATEn ♦ REQUIRING DELIVERY OF THIS RESOLUTION TO
HE COMPANY ♦ THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of Kennedale, Texas ("City") 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, charges, and services of Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee
("ACSC"), a coalition of similarly -situated cities served by Atmos Mid -Tex ("ACSC Cities")
that have joined together to facilitate the review of, and response to, natural gas iIF IF
ssues
affecting rates charged in the Atmos Mid -Tex service area; and
Review Mechanism ("RRM") tariff that allows for an expedited rate review process by
ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP")
process instituted by the Legislature,
and that will establish
based on the system -wide cost of serving
rates for the ACSC Cities
the Atmos Mid -Tex Division; and
WHEREAS, the current RRM tariff was adopted by the City in a r CA
ordinance in
WHEREAS, on about April 11 20227 Atmos Mid -Tex filed its 2022 RRM rate request
with ACSC Cities based on a test year ending December 31, 2021; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2022 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to
resolve issues identified in the Company's RRM filing; and
WHEREAS, the Executive
consultants, recommend t
Committee, as well as ACSC's counsel and
hat ACSC Cities approve an increase in base rates for Atmos
Mid -Tex of $115 million on a system -wide basis with an Effective Date of October 1, 2022;
WHEREAS, ACSC agrees that Atmos' plant-i
WHEREAS, with the
Roreclosed
n-service is reasonable; and
exception of approved
plant-i
n-service,
ACSC is not
from future reasonableness evaluation of costs associated with
elated to gas leaks; and
WHEREAS, then tariffs
Attachment 1) implementing new
incidents
rates are
consistent with the recommendation of the ACSC Exece Cittee utivomm, are agre
e d to by
the Company, and are just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and
retiree medical benefits (Attachment 2); and
2557/35/8444341 2
WHEREAS, the RRM Tariff contemplates r
eApenses associated with [DID"applications;
OF KENNEDALE1 TEXAS:
Section 1. That the findings set
eim
bursement of ACSC's reasonable
forth in this Resolution are hereby in all things
Section 2. That, without prejudice to f
ACSC, t
he City Counc
uture litigation of any issue identified by
it finds that the settled amount of an increase in revenues of $115
million on a system -wide basis represents a comprehensive settlement of gas u
ti I ity rate
issues affecting the rates, operations, and services offered by Atmos Mid -Tex within the
municipal limits arising from Atmos Mid-Tex's 2022 RRM
and is consistent with the City's authority under Section
Section 3. That despite finding Atmos
reasonable, ACSC is not foreclosed in future cases
filing, is in the public interest,
103.001 of th
e
Texas Utilities
Mid-Tex's plant -in-service to be
from evaluating the reasonableness
of costs associated with incidents involving leaks of natural gas.
Section 4. That the existing rates for natural gas service provided by Atmos
Tex are unreasonable. The new tariffs attached hereto and incorporated herein as
Attachment 1, are just and reasonable
recover annually an additional $11
to allow Atmos Mid -Tex to
5 on a system -wide basis, over the amount allowed
under currently approved rates. Such tariffs are hereby adopted.
2557/35/8444341 3
Section 50
That the ratemaking
benefits in Atmos Mid-Tex'S next RRM filing sha
attached hereto and incorporated herein.
Section 6.
That Atmos Mid -Tex shall r
expenses of the ACSC in processing t
treatment for pensions and retiree medical
2,
II
be as set forth on Attachment
eimburse
the reasonable ratemaking
he Company's 2022 RRM filing.
Section 7. That to the extent any
the Counc
things
resolution or ordinance previously adopted by
it is inconsistent with this Resolution, it is hereby repealed
Section 8. That the meeting at which this Resolution was approved was in all
conducted in
strict compliance with the Texas Open
Government Code, Chapter 551.
i
Section 9.
Meetings Act,
Texas
his Resolution is
i
impa r, or
nvalidate the remaining provisions of this Resolution, and the remaining provisions of the
That if any one or more sections or clauses of t
to be unconstitutional or invalid, suchof
Resolution sha
Section
process, t
udgment shall not affect
II be interpreted as if the offending section o
10. That consistent with the City Ordinance that established
Resolution shall become effective from
his
authorized by attached tariffs to be effective for b
Section Section
and after it
isted
r clause never ex
the RRM
s passage with rates
i
lls rendered on or after October 1, 2022.
That a copy of this Resolution shall be sent to Atmos Mid -Tex, care
of Chris Felan, Vice President of Rates and Regulatory Affairs Mid -Tex Division, Atmos
Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas
Brocato, General Counsel to ACSC, at Lloyd Gosselink Rochelle &Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
2557/35/8444341 4
DULY PASSED AND APPROVED BY THE CITY COUNCIL O
KENNEDALE, TEXAS, ON THIS THE DAY OF
AYOR HOLLIS MATTHEWS
ATTEST:
INTERIM CITY SECRETARY, CAROLINE GREEN
APPROVED AS TO FORM:
CITY ATTORNEY, CARVAN E. ADKINS
THE CITY OF
2022 E
2557/35/8444341 5