Agenda Information Sheet
DEPARTMENT: Legal Department
CM/ ACM: Anita Burgess
Date: February 21, 2017
SUBJECT
Title
Consider approval of a resolution by the City of Denton; authorizing participation in a coalition of similarly situated cities in connection with the statement of intent to change rate CGS and rate PT of Atmos Pipeline-Texas filed on or about January 6, 2017; authorizing participation in related rate proceedings; authorizing the retention of special counsel; requiring the reimbursement of municipal rate case expenses; finding that the meeting complies with the open meetings act; and making other findings and provisions related to the subject
Body
BACKGROUND
On or about January 6, 2017, Atmos Pipeline Texas ("APT" or "Atmos") submitted a Statement of Intent with the Railroad Commission of Texas to raise "Rate CGS" ("city gate service") and Rate PT ("pipeline transportation"). This request represents an increase in revenue of approximately $72.9 million or a 17.38% increase over current revenues.
The proposed increase directly affects the following firm transportation customers: Atmos Energy Corp., Mid-Tex Division; Co-Serv Gas Ltd.; the City of Rising Star; the City of Navasota; Corix Utilities, Inc.; Terra Gas Supply; Terra Gas Service, Co.; and WTG Marketing, Inc. In addition, there are 70 interruptible customers who take service under "Rate PT - Pipeline Transportation" and that will be affected by this rate increase request.
It is expected that Atmos MidTex (the distribution gas-utility company) will pass along to its customers, APT's proposed increase in rates. Thus, the rates that the City's citizens and businesses, and the City as a consumer of gas-utility services pay Atmos Texas MidTex (the distribution gas-utility company), will likely be affected by APT's proposed rate increase.
On a rate schedule basis, the impact is as follows:
Capacity Charges
Rate Schedule
Current Capacity Charge per MMBtu of MDQ
Proposed C...
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