Title
Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Approving A Negotiated Settlement Between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division Regarding the Company’s 2026 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 Resolution 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 Resolution to the Company and the ACSC’s Legal Counsel
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
5.3 Develop Sustainable Quality of Life Improvements within the City of McKinney
MEETING DATE: September 1, 2026
DEPARTMENT: City Manager’s Office
CONTACT: Nimra Zubair, Assistant to the City Manager
RECOMMENDED CITY COUNCIL ACTION:
? Staff recommends Council approve this item.
ITEM SUMMARY:
? On or about April 1, 2026, the Atmos Energy Corporation, Mid-Tex Division (“Company”) filed a rate request under the Rate Review Mechanism (“RRM”) Tariff adopted by ACSC members and subsequently settled the case for $260.5 million, which includes reimbursement of ACSC’s expenses. The new rates will take effect on October 1, 2026, resulting in a monthly increase of 14.15% for residential customers and 9.9% for commercial customers. The Company asserted that its cost of service for the test year ending December 31, 2025, justified additional systemwide revenues.
BACKGROUND INFORMATION:
? The City, along with 181 other Mid-Texas cities served by the Company, is...
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