O520ORDINANCE NO. 520
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF KENNEDALE, TEXAS, ( "CITY ") APPROVING AND
ADOPTING RATE SCHEDULE "RRM — RATE REVIEW
MECHANISM" FOR ATMOS ENERGY CORPORATION,
MID -TEX DIVISION TO BE IN FORCE IN THE CITY FOR
A PERIOD OF TIME AS SPECIFIED IN THE RATE
SCHEDULE; ADOPTING A SAVINGS CLAUSE;
DETERMINING THAT THIS ORDINANCE WAS PASSED
IN ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT; DECLARING AN
EFFECTIVE DATE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND ACSC
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 "the Company "), and a regulatory
authority with an interest in the rates and charges of Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee ( "ACSC "), a
coalition of cities, most of whom retain original jurisdiction over the rates and services of Atmos
Mid -Tex; and
WHEREAS, in 2007 ACSC member cities 'and Atmos Mid -Tex collaboratively
developed the Rate Review Mechanism ( "RRM ") Tariff that allows for an expedited rate review
process controlled by cities as a substitute for the legislatively - constructed Gas Reliability
Infrastructure Program ( "GRIP "); and
WHEREAS, the GRIP mechanism does not permit the City to review rate increases, and
constitutes piecemeal ratemaking; and
WHEREAS, the RRM process permits City review of requested rate increases and
provides for a holistic review of the true cost of service for Atmos Mid -Tex; and
WHEREAS, the initial RRM tariff expired in 2011; and
3562140.1 1
WHEREAS, ACSC's representatives have worked with Atmos Mid -Tex to negotiate a
renewal of the RRM process that avoids litigation and Railroad Commission filings; and
WHEREAS, the ACSC's Executive Committee and ACSC's legal counsel recommend
ACSC members approve the negotiated new RRM tariff; and
WHEREAS, the attached Rate Schedule "RRM — Rate Review Mechanism" ( "RRM
Tariff') provides for a reasonable expedited rate review process that is a substitute for, and is
superior to, the statutory GRIP process; and
WHEREAS, the expedited rate review process as provided by the RRM Tariff avoids
piecemeal ratemalcing; and
WHEREAS, the RRM tariff reflects the ratemalcing standards and methodologies
authorized by the Railroad Commission in the most recent Atmos Mid -Tex rate case, G.U.D. No.
10170; and
WHEREAS, the RRM Tariff provides for an annual reduction in Atmos Mid -Tex's
requested rate increase of at least $3 million; and
WHEREAS, the RRM Tariff provides for a lower customer charge than if Atmos Mid-
Tex pursued GRIP filings; and
WHEREAS, the attached RRM Tariff as a whole is in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds that the RRM Tariff, which is attached hereto
and incorporated herein as Attachment A, is reasonable and in the public interest, and is
hereby in force and effect in the City.
3562140.1 2
Section 3. That to the extent any resolution or ordinance previously adopted by the City
Council is inconsistent with this Ordinance; it is hereby repealed.
Section 4. 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 5. That if any one or more sections or clauses of this Ordinance is judged 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 6. That this Ordinance shall become effective from and after its passage.
Section 7. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of
Christopher Felan, Vice President of Rates and Regulatory Affairs for Atmos Mid -Tex Division,
Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240, and to
Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 9th day of MAY 20 3.
or John Clarlc
ATTEST:
KENNF� ®i
City Secretary A ethyst G. Cirmo ® ® ®�� �l0
APPROVED AS TO FORM:
�
City Attorney Wayne K. Olson
3562140.1 3