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.
(This item was postponed at the June 5, 2017, City Council meeting.)
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 in...
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