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HomeMy WebLinkAboutResolution - 2024-R0200 - Atmos Energy-West Texas Division, Triangle Rate Adjustment, February 23, 2024 - 04/09/2024Resolution No. 2024-R0200 Item No. 6.49 Apri19, 2024 RESOLUTION A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, ("CITY") RESPONDING TO THE APPLICATION OF ATMOS ENERGY — WEST TEXAS DIVISION, TO INCREASE RATES UNDER THE GAS RELIABILITY INFRASTRUCTURE PROGRAM; SUSPENDING THE EFFECTIVE DATE OF THIS RATE APPLICATION FOR FORTY-FIVE DAYS; AUTHORIZING THE CITY'S PARTICIPATION IN COORDINATION WITH OTHER CITIES; REQUIRING THE REIMBURSEMENT OF COSTS; DETERMINING THAT THE MEETING AT WHICH THE RESOLUTION WAS ADOPTED COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS: on or about February 23, 2024, Atmos Energy — West Texas Gas Division (Atmos-WTX) fled for an increase in gas utility rates under the Gas Reliability Infrastructure Program ("GRIP"), resulting in a requested increase in the monthly city gate/transportation charge applicable within the Triangle Distribution System of the West Texas Division as shown in the table below: Rate Current City Proposed 2023 Adjusted Increase Schedule Gate / Interim Rate City Gate / to Transportation Adjustment Transportation Each Bill Char e Char e City Gate / $0.53549 $0.08758 $0.62307 $0.08758 Trans ortation Service er MMBtu er MMBtu er MMBtu and WHEREAS: the City has a special responsibility to exercise due diligence with regard to rate increases of monopoly utilities who operate within its boundaries; and WHEREAS: the application to increase rates by Atmos-WTX is complex; and WHEREAS: it is necessary to suspend the effective date for the increase in rates for forty-five days, so that the City can assure itself that the data and calculations in Atmos-WTX's rate application are correctly done, and whether Atmos-WTX's application otherwise conforms to the requirements of Texas Utilities Code § 104.301, commonly referred to as the GRIP statute; and WHEREAS: the effective date proposed by Atmos-WTX is April 23, 2024, but a suspension by the City will mean that the rate increase cannot go into effect prior to June 7, 2024. 1 of 3 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CTTY OF LUBBOCK, TEXAS THAT: Section 1. That the statements and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The City suspends the requested effective date by Atmos-WTX for forty- five days pursuant to the authority granted the City under Section 104.301 of the Texas Utilities Code. The City finds that additional time is needed in order to review the data and calculations that provide the basis for the rate increase application, and to determine whether Atmos-WTX's application otherwise conforms to the requirements of the GRIP statute. Section 3. The City continues to act in coordination with a group of cities comprised of the Cities of Amarillo, Lubbock, Dalhart, and Channing in its review of Atmos-WTX's rates. Section 4. The City authorizes the law firm of Herrera Law & Associates, PLLC, to represent the City in connection with Atmos-WTX's application to increase rates. Section 5. Atmos-WTX is ordered to reimburse the City's reasonable rate case expenses incurred in response to Atmos-WTX's rate increase application within 30 days of receipt of invoices for such expenses to the extent allowed by law. Section 6. The meeting at which this resolution was approved was in all things conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 7. This resolution shall be effective immediately upon passage. [Remainder of this Page Intentionally Left Blank] 2of3 PASSED AND APPROVED this 9th day of � A�ril 2024. ATTEST: Courtney Paz, City Secret APPROVED AS TO CONTENT: D. u Kostel' , Chief Fi 'al Officer APPROVED AS TO FORM: �-, � Sims, De��ity Attorney 3 of 3 - :_TMos energy Mr. Tray Payne City of Lubbock 1314 Avenue K Lubbock,Texas 79401 February 23, 2024, Atmos Energy Corporation, West Texas Division is filing the Triangle Distribution System Interim Rate Adjustment Filing with the Railroad Commission of Texas. Your copy is attached herewith. If you have any questions, please feel free to contact me. Yours truly, Attachment: Atmos Energy Corporation, West Texas Division, Triangle Distribution System Interim Rate Adjustment Filing, Test Year Ending December 31, 2023. Receipt Acknowledged by: Name: Title: C�a Date: 23 F6 2v2y