HomeMy WebLinkAboutResolution - 2022-R0173 - Gas Reliability Infrastructure Program RatesResolution No. 2022-RO173
Item No. 7.24
April 12, 2022
RESOLUTION NO. 2022-R0173
A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS, ("CITY")
RESPONDING TO THE APPLICATION OF ATMOS ENERGY
CORPORATION — WEST TEXAS DIVISION, TO INCREASE RATES
UNDER THE GAS RELIABILITY INFRASTRUCTURE PROGRAM;
SUSPENDING THE EFFECTIVE DATE OF THIS RATE APPLICATION
FOR FORTY-FIVE DAYS; 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 25, 2022 Atmos Energy Corporation — West Texas
vision ("Atmos Energy") filed for an increase in gas utility rates under the Gas Reliability
Program (`GRIP"), which if approved, results in an increase in the monthly
customer charges as follows:
Current
Proposed 2021
Adjusted
Customer
Interim Rate
Customer
Increase
Rate Schedule
Charge
Adjustment
Charge
Per Bill
$15.00 per
$2.83 per
$17.83 per
Residential Gas
customer per
customer per
customer per
Service
month
month
month
$2.83
$50.00 per
$8.79 per
$58.79 per
Commercial
customer per
customer per
customer per
Gas Service
month
month
month
$8.79
Industrial &
$525.00 per
$152.87 per
$677.87 per
Transportation
customer per
customer per
customer per
Gas Service
month
month
month
$152.87
Public
$50.00 per
$15.84 per
$65.84 per
Authority Gas
customer per
customer per
customer per
Service
month
month
month
$15.84
WHEREAS, Atmos Energy's application, if approved by the Railroad Commission, will
in a systemwide increase in Atmos Energy's revenue of about $13.15 million, of which the
of Amarillo, Channing, Dalhart, and Lubbock's portion is about $6.12 million.
WHEREAS, Atmos Energy proposed an effective date of April 26, 2022 for its proposed
in rates; and
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WHEREAS, the City has a special responsibility to exercise due diligence with regard
rate increases of monopoly utilities who operate within its boundaries; and
WHEREAS, the application to increase rates by Atmos Energy 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 Energy's
rate application are correctly done and are in conformity with section 104.301 of the Gas Utility
Regulatory Act; and
WHEREAS, the effective date proposed by Atmos Energy is April 26, 2022 but a
suspension by the City will mean that the rate increase cannot go into effect prior to June 10,
2022.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LUBBOCK, TEXAS THAT:
Section 1. That the statements and findings set out in the preamble to this resolution
hereby in all things approved and adopted.
Section 2. The City suspends the requested effective date by Atmos Energy for forty -
days pursuant to the authority granted the City under Section 104.301 of the Texas Utilities
The City finds that additional time is needed in order to review the data and calculations
provide the basis for the rate increase application.
Section 3. The City authorizes the law firm of Herrera Law & Associates, PLLC, to
on its behalf in connection with Atmos Energy's application to increase rates.
Section 4. To the extent Atmos Energy's application to increase rates under section
1104.301 of the Gas Utility Regulatory Act ("GURA") is considered a ratemaking proceeding,
tmos Energy is ordered to reimburse the City's reasonable rate case expenses incurred in
to Atmos Energy's rate increase application within 30 days of receipt of invoices for
expenses to the extent allowed by law.
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Section 5. A copy of this resolution shall be sent to Mr. Phillip Littlejohn, Vice
President, Rates & Regulatory Affairs, Atmos Energy Corporation, 6606 66Ih Street, Lubbock,
Texas 79424; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400 Medical
Pkwy., Austin, Texas 78756.
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.
PASSED AND APPROVED this 12th day of Aril 2022.
U-s-,
ATTEST:
Garza, City
APPROVED AS TO CONTENT:
jD.Blu Kdstelich
Chief Financial Officer
Deputy City Attorney
DAN POPE, MAYOR
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