Title
Consider/Discuss/Act on an Ordinance Approving a Settlement Agreement Between Atmos Mid-Tex and the Steering Committee of Cities Adopting Adjusted Rate Tariffs
Summary
MEETING DATE: August 16, 2011
DEPARTMENT: City Manager’s Office
CONTACT: Aretha Harvey, Assistant to the City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
· Approve passage of settlement agreement ordinance.
ITEM SUMMARY:
· The City, along with approximately 154 other cities served by Atmos Energy Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC” or “Steering Committee”). On or about April 1, 2011, Atmos Mid-Tex filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism (“RRM”) tariff approved by the City as part of the settlement of the Atmos Mid-Tex 2007 Statement of Intent to increase rates. This is the fourth annual RRM filing.
· The Atmos Mid-Tex RRM filing sought a $15.7 million rate increase. The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its request to increase rates. The Ordinance and attached rate and RRM tariffs are the result of negotiations between ACSC and the Company to resolve issues raised by ACSC during the review and evaluation of ACSC’s RRM filing. The Ordinance resolves the Company’s RRM filing by authorizing supplemental revenue of $6.6 million to be recovered through the customer charge component of rates to cover direct incremental costs associated with a steel service line replacement program approved as part of last year’s rate adjustment. All other relief requested by Atmos Mid-Tex is denied.
· During the time that the City has retained original jurisdiction in this case, consultants working on behalf of ACSC cities have investigated the support for the Company’s requested rate increase. While the evidence does not support the $15.7 million increase requested by the Com...
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