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HomeMy WebLinkAboutResolution - 2000-R0435 - Settlement Agreement With Energas Regarding Rate Increase - 11/27/2000Resolution No. 2000-RO435 November 27, 2000 Item No. 20A RESOLUTION WHEREAS, the City of Lubbock deems it to be in the best interest of the health, safety and welfare of the citizens of the City of Lubbock to approve a Settlement Agreement pertaining to Gas Utilities Docket No. 9002-9135, of the Texas Railroad Commission Agreement between Energas Company and the 67 cities comprising the West Texas System; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock, hereby authorizes the Mayor to sign the Settlement Agreement, as amended, pertaining to Gas Utilities Docket No. 9002-9135 of the Texas Railroad Commission between Energas Company and the 67 cities comprising the West Texas System, a copy of which Settlement Agreement, as amended, is attached hereto and shall be spread upon the minutes of the Council and as spread upon the minutes of the Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 27th day of November 2000. FA 010 " 0, M. A ATTEST: Kaythje Darnell, City Secretary APPROVED AS TO CONTENT: f Bob Cass, City Manager APPROVED AS TO FORM: S Anita Burgess, City Xttorney ccdocs/Gasagree.res November 24, 2000 Resolution No. 2000-RO435 November 27, 2000 Item No. 20A AMENDMENT T4 SETTLEMENT AGREEMENT Gas Utilities Division Nos 9002-9135 The Cities of Lubbock, Levelland, Big Spring, Brownfield, Hale Center, Wolfforth, Shallowater, and Lamesa (South Plains Cities) and Energas Company (Energas), hereinafter collectively referred to as "the parties," do hereby agree to the Settlement Agreement of June 8, 2000, subject to City Council approval, provided that: 1. The parties shall propose and encourage the Railroad Commission of Texas to enter a final order, including findings of fact and conclusions of law, which is consistent with the Settlement Agreement, as amended, and ,to not adopt the Proposal for Decision to the extent that such document is inconsistent with the Settlement Agreement, as hereby amended. 2. A deduction shall be made of $203,946.36 to the rate case expenses of Energas allocated to the South Plains Cities and incurred after August 8, 2000. 3. No rate case expenses by any party shall be incurred after November 28, 2000 in connection with GUD Docket Nos. 9002-9135. 4. The increase in rates shall take effect and apply to service rendered within the South Plains Cities on and after December 1, 2000 If a' final Commission order has not been entered or is not likely to be entered by such date, then the parties shall jointly request approval of temporary rates at the agreed level, to be effective on such date and continue in effect until such time as a final Commission order becomes effective inside the city limits of each respective South Plains City. AMt�'sJp,\, day of November, 2000. BBy: G- Q�-/ WINDY S TTON, MAYOR ATTEST: l LUBBOCK Kay South Plains Cities cit A as to torr+ 7 1117 City Attorney e Darnell _� ecretar Energas Resolution No. 2000-RO435 Settlement Agreement Gas Utilities Docket No. 9002-9135 A settlement agreement for natural gas utility rates between Energas Company and 67 Cities comprising the Company's West Texas System: 1. Cities agree to grant Energas an increase in natural gas rates of $3,010,837, to be implemented according to the attached rate design schedules (Exhibit A). 2. Cities and Energas agree that the natural gas rate increase will be effective for natural gas service rendered on and after October 1, 2000. 3. Energas agrees not to increase customer service fees under this Agreement. 4. Energas agrees not to implement new natural gas rates in the West Texas System earlier than three (3) years from the effective date of the gas rates established by this Agreement. Energas may request suspension of this rate moratorium due to: a. legislative or regulatory action that has a direct impact on Energas' cost of providing service and results in known and measurable increases in annual non -fuel operating expenses of more than $2.5 million; b. other unforeseen and unforeseeable events beyond Energas' control that result in known and measurable increases in Energas' annual non -fuel operating expenses in excess of $5 million; or, c. the effect of tornado, act of war, act of God or other uncontrollable and unforeseeable catastrophic event causing Energas to expend, or to anticipate expending, $5 million or more in response thereto or as a result thereof. 5. Energas agrees not to request changes to its customer service fees in the West Texas System earlier than two (2) years from the effective date of the gas rates established by this Agreement and will not appreciably reduce its level of customer service prior to requesting a change in customer service fees. 6. Energas agrees to adopt depreciation rates as proposed by the Company in Gas Utilities Docket (GUD) No. 9002-9135. 7. Cities and Energas agree that Energas will file its rebuttal testimony on June 6, 2000, as currently scheduled in GUD No. 9002-9135. 8. Cities and Energas agree to file a joint motion to revise the procedural schedule in GUD No. 9002-9.135, requesting that the current schedule be abated beginning June 7, 2000, to allow city officials to consider and ratify this Agreement. -Page 1- In the event that this Agreement is not ratified by all Cities in the West Texas System, those Cities and Energas agree to file a joint motion to end the abatement period and resume the previously scheduled hearing. 9. Cities and Energas agree that rate case expenses incurred by Cities and Energas shall cease to be incurred for each City and Energas upon ratification of this agreement. Rate case expenses incurred by Cities and Energas shall be recovered by Energas through a rate surcharge on all customers in the West Texas System. The surcharge will be implemented at the same time that gas rates are implemented by this Agreement, and will be in place for a term of three (3) years. Cities and Energas shall provide sufficient documentation to the other to verify the amount of rate case expenses incurred. Energas shall provide Cities documentation supporting calculation of the rate case expense surcharge, and shall provide annual updates to the Cities, or more often upon request, regarding recovery of rate case expenses until such time as rate case expenses are fully recovered. Recovery of rate case expenses incurred by Cities that do not ratify this Agreement will be determined by Final Order of the Railroad Commission in GUD No. 9002-9135. 10. Energas agrees to work with Cities regarding "municipal aggregation" of Cities' natural gas supply, including if necessary to undertake renegotiation of its supplier contracts. "Municipal aggregation" in this Agreement means that Cities may collectively purchase natural gas supplies for distribution by Energas through its natural gas distribution system in each City. 11. Cities and Energas agree that this Agreement is solely for the purpose of settling the current rate request, and has no precedential value for any future natural gas rate proceedings involving Cities and Energas. Agreed to this day day of November, 2000. CITY OF LUBBOCK: WINDY MTON, MAYOR A T: Kaythief arnell, City Secretary -Page 2- ENERGAS COMPANY: By: cuj �l • �I APPROVED AS TO CONTENT: Richard Burdine, Assistant City Manager Revised 06/06/00 -Page 3- ENERGAS — LUBBOCK s cc F -d � jq r at ID:18067984494 DEC 20'00 11:31 No.002 P.02 Resolution No. 2000-RO435 C g L5 a a a s 8( � m A » M 1p in a g � a a I g gg s 8( 5 ENERGAS — LUBBOCK -4 co E CL a H O d c ID:18067984494 ®8 DEC 20'00 11:31 No.002 P.03 e � 3 ENERGAS -.LUBBOCK ID:18082984494 $ DEC 20'00 11:32 No.002 R.04 k I I 1191 � .� ■ � ■ _ _ _ _ _ _ ■ ■ � � R ■ ■ � in 2 � l.. � � � � $ ■ $ . ■ � § to ■ ■ _ _ © E e ■ S n t - � - � � ■ . 2 _ _ _ __ E® ■ ■ _ & § to _ _ ■ _ _ � � $ - - ■ ® �§ -____e�eeee#pa■| DEC 20'00 11:32 No.002 R.04 k I I ENERGRS - LUBBOCK ID:18067984494 DEC 20°00 11:32 No.002 P.05 WtI �t r r p ..�� wN P!W IDm A 40 m-i-eN-rw#g fof r i M M M N M N N M g w w w w oqo QQ O O O N N oM Ifl pM � pN O O i w w w N VS � S � o S M M M M M N M N d 4 v M N M N N r ..�� wN P!W IDm A 40 m-i-eN-rw#g fof ENERGRS - LUBBOCK I):18082984494 ■ � � ■ � m � # � � 4 $ @ ■� I � ■ � § at _ K $ ■ ■ � � � $ � � � at _ _ _ _ _ ■ ■ _ , % ■ ■ � ■ � � § § § § ■ _ ■ ■ � � Iq R ■ R in � ■ ■ � � _ ■ � - � � � § 2 § § ■ _ _ _ ■ � o __N_e ON DEC 20'00 11:33 No.002 R.OB k � � ENERGRS - LUBBOCK IO:18062984494 DEC 20'00 11:34 No.002 F.07 rl � � � $ § k • ■� c; _ ■ ■ _ ■ � � $ A @ K & � � r ■ � d � B ■ � _ _ # _ _ _ _ ■ _ - ■� � I � k � ■ %R ■ in � § � _ ■ _ © _ _ § I tuns k ■� DEC 20'00 11:34 No.002 F.07 rl � � � $ § k • c; _ ■ ■ _ ■ � $ � � r ■ � d � B ■ � § � � � � � k k • � $ � / ■ _ _ _ _ _ _ _ ■� ■ K $ § § e ■ d a _ _ _ _ ■ &� -�__weP�_ee��■#s■■ DEC 20'00 11:34 No.002 F.07 rl � � � ENERGAS — LUBBOCK ID:18067984494 c DEC 20'00 11:34 No.002 P.08 J F o A 1 DEC 20'00 11:34 No.002 P.08 J ENERGAS - LUBBOCK ID:18062984494 r. §4 _ k I . . cc � . � 2 �V & t c ... i _ 2 � . � . � e 012 � 2 ® U DEC 20'00 11:35 No.002 P.09 k � I I % k ■ § � � a & § ■ k � P � � / 2 ® VD ■ q K B_ � � ■ a a - _ ■ _ _ �$ i I § � � � ■ � �� -®---®�-®ems■ DEC 20'00 11:35 No.002 P.09 k � I