Title
An ordinance on the second and final reading, approving a negotiated settlement between the Atmos Cities Steering Committee ("ACSC") and Atmos Energy Corp., Mid-Tex Division regarding the company's 2024 Rate Review Mechanism filing, declaring existing rates to be unreasonable, adopting tariffs that reflect rate adjustments consistent with the negotiated settlement, finding the rates to be set by the attached settlement tariffs to be just and reasonable and in the public interest, approving an attachment establishing a benchmark for pensions and retiree medical benefits, requiring the company to reimburse ACSC's reasonable ratemaking expenses, determining that this ordinance was passed in accordance with the requirements of the Texas Open Meetings Act, adopting a savings clause, declaring an effective date and requiring delivery of this ordinance to the company and the ACSC's legal counsel.
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On April 1, 2024, Atmos Energy filed a rate request pursuant Rate Review Mechanism (RRM) adopted by ACSC members. The company claimed that its cost-of-service in a test year ending, December 31, 2023, entitled it to additional system-wide revenues of $196.8 million. Applications of the standards set forth in ACSC's RRM Tariff reduces the company's request to $182.5 million, $132.6 million of which would be applicable to ACSC members. After reviewing the filing and conduction discovery, ACSC consultants concluded that the system-wide deficiency under the RRM regime should be $149.6 million instead of the claimed $182.5 million. After several meetings the parties agreed to settle the case for $164.7 million, which is a reduction of $32.1 million to the Company's initial request. This settlement includes payment of ACSC expenses.
The impact of the settlement on average residential rates is an increase of $5.52, monthly, or 6.84 percent. The increase for average commercial usage will be $13.39 or 3.44 percent. These new rates become effective on October 1, 2024.
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