Title
Consider/Discuss/Act on a Resolution Denying the Gas Utility Rate Increase Requested By Atmos Energy Corp., Mid-Tex Division Under the Second Rate Review Mechanism Filing
Summary
MEETING DATE: June 3, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Approve the resolution.
ITEM SUMMARY:
* This resolution finds that Atmos Energy Corp., Mid-Tex Division (Atmos Mid-Tex) was unable to justify the appropriateness or the need for the increased revenues requested in the second 2014 Rate Review Mechanism (RRM) filing, and that existing rates for natural gas service provided by Atmos Mid-Tex are just and reasonable.
* Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the Atmos Cities Steering Committee (ACSC) Cities in processing the Atmos Mid-Tex's RRM application.
* In the event Atmos Mid-Tex files an appeal of this denial of rate increase to the Railroad Commission of Texas, the City is hereby authorized to intervene in such appeal, and shall participate in such appeal in conjunction with the ACSC membership. Further, in such event Atmos Mid-Tex shall reimburse the reasonable expenses of the ACSC Cities participating in the appeal of this and other ACSC City rate actions resulting from the 2014 RRM filing.
BACKGROUND INFORMATION:
* The City of McKinney, Texas is a gas utility customer of Atmos Mid-Tex, and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex.
* The City is a member of the Atmos Cities Steering Committee (ACSC), a coalition of approximately 164 similarly situated cities served by Atmos Mid-Tex that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid-Tex service area.
* Pursuant to the terms of the agreement settling Atmos Mid-Tex's 2007 Statement of Intent to increase rates, ACSC Cities and Atmos Mid-Tex worked collabora...
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