HomeMy WebLinkAboutResolution - 2018-R0101 - Atmos Energy - 03/08/2018Resolution No. 2018-RO101
Item No. 4.3
March 8, 2018
RESOLUTION
WHEREAS, the City of Lubbock, Texas ("City") is a regulatory authority under the Gas Utility
Regulatory Act ("GURA"), and under § 103.001 of GURA has exclusive original jurisdiction over
Atmos Energy Corporation —West Texas Division ("Atmos") rates, operations, and service of a
gas utility within the municipality; and
WHEREAS, the City participated in Atmos' general rate case at the Railroad Commission of
Texas in Gas Utility Docket No. 10174 ('`GUD No. 10174"); and
WHEREAS, as approved in GUD No. 10174, the City entered in to a 2013 Rate Filing Settlement
Agreement dated September 14, 2012 (the "Settlement Agreement") that governs the current rates
charged by Atmos in the jurisdiction of the City; and
WHEREAS, Atmos has subsequently filed increases in the rates established by the Settlement
Agreement with the City pursuant to the Gas Reliability Infrastructure Program ("GRIP"); and
WHEREAS, the corporate tax rate on federal income included in Atmos' current rates and
approved in the Settlement Agreement was based on a federal -income-tax rate of 35%; and
WHEREAS, effective January 1, 2018, the corporate tax rate on income is 21%; and
WHEREAS, accordingly, Atmos seeks administrative approval under Utilities Code § 104.111 to
decrease its rates by approximately $1.6 million; and
WHEREAS, the reduction in Atmos' annual revenue is limited to the tax expense related to the
change in the corporate tax rate from 35% to 21% relative to the revenue requirement established
in the Settlement Agreement and thus will need to be adjusted further in a future proceeding to
account for excess deferred income taxes resulting from the Tax Cut and Jobs Act of 2017; and
WHEREAS, by approving the reduction in Atmos' rates, and consenting to the reduction in
Atmos' rates, the City, in future proceedings or in other jurisdictions, is under no obligation to take
the same positions with regard to the methodology resulting in a reduction in rates, as the
methodology underlying the reduction proposed by Atmos, nor shall the City's approval of the
reduction in Atmos' rates or its consent to the reduction in Atmos' rates, be used against City in
any future proceeding with respect to different positions the City may take with regard to setting
Atmos' rates. NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT:
Section 1. The findings set forth in this Resolution are hereby in all things approved and
incorporated herein.
Section 2. Atmos shall submit to the City within fourteen days from the effective date of this
Resolution, amended tariffs reflecting the reduction in revenue noted above.
Section 3. To the extent any Resolution previously adopted by the City Council is inconsistent
with this Resolution, it is hereby superseded.
Section 4. The meeting at which this Resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 5. If any one or more sections or clauses of this Resolution is judged to be unconstitutional
or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this
Resolution and the remaining provisions of the Resolution shall be interpreted as if the offending
section or clause never existed.
Section 6. This Resolution shall become effective from and after its passage.
Passed by the City Council on March 8 , 2018.
ATTEST:
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Reb t
Garza, City Secretar
APPROVED AS TO CONTENT:
D. Btu 1' oste46, Chief Financial Officer
APPROVED AS TO FORM:
Amy Sims Deputy torney
RES.Atmos WTX-Tax Change Reduction (3-02-18)
DANIEL M. POPE, MAYOR
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