Title
An ordinance, on second and final reading, approving a negotiated settlement between the Atmos Cities Steering Committee (ACSC) and Atmos Energy Corporation, Mid-Tex Division (Company) regarding the Company's 2017 Rate Review Mechanism (RRM) filings; 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 settlement tariffs to be just and reasonable and in the public interest; requiring reconciliation and rate adjustments if federal income tax rates change; terminating the RRM process or 2018 pending renegotiation of RRM terms and conditions; 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 counsels.
Body
The City, along with approximately 168 other cities served by Atmos Energy Corporation, Mid-Tex Division (Atmos Mid-Tex or Company), is a member of the Atmos Cities Steering Committee (ACSC). On March 1, 2017, Atmos Mid-Tex filed with the City its fifth and final application pursuant to the current Rate Review Mechanism (RRM) tariff process requesting $57.4 million in additional revenues on a system-wide basis.
ACSC and the Company have reached a settlement to reduce the Company's request by $9.4 million to $48 million on a system-wide basis. If the Company used the Gas Reliability Infrastructure Program (GRIP) process rather than the RRM process, it would receive $52.4 million, or about $4.4 million more than will be approved by this ordinance. The monthly residential customer charge will increase $0.50 per month, from $19.10 to $19.60, a 2.62 percent increase, and the residential consumption charge will increase 26.8 percent, from $0.11378 per 100 cubic feet (Ccf) of natural ...
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