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HomeMy WebLinkAboutResolution - 2023-R0166 - Atmos Energy West Texas Division 45 day SuspensionResolution No. 2023-R0166 Item No. 6.21 March 21, 2023 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 24, 2023, Atmos Energy — West Texas Gas Division (Atmos-WTX) filed for an increase in gas utility rates under the Gas Reliability Infrastructure Program ("GRIP"), resulting in a requested increase in the monthly customer charge as shown in the table below: Rate Current Proposed 2022 Adjusted Increase Schedule Customer Interim Customer to Charge Adjustment Charge Each Bill Residential Gas Service $17.83 $3.19 $21.02 $3.19 per customer per customer per customer per per month per month per month customer per month Commercial Gas Service $58.79 $10.15 $68.94 $10.15 per customer per customer per customer per per month per month per month customer per month Industrial/Transportation $677.87 $169.23 $847.10 $169.23 Gas Service per customer per customer per customer per per month per month per month customer er month Public Authority Gas $65.84 $18.44 $84.28 $18.44 Service per customer per customer per customer per per month per month per month customer per month 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 1 of 3 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 25, 2023, but a suspension by the City will mean that the rate increase cannot go into effect prior to June 9, 2023. 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 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. 2of3 Section 7. This resolution shall be effective immediately upon passage. PASSED AND APPROVED this 21 st ATTEST: Courtney Paz, Interucity Uwtary APPROVED AS TO CONTENT: - 1?-i, 6zzr;2 DIlu kost6lich,Thle nancial Officer APPROVED AS TO FORM: Deputy orney day of March 2023. 3 of 3