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 2024 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: Operational Excellence
MEETING DATE: September 17, 2024
DEPARTMENT: City Manager's Office
CONTACT: Trevor Minyard, Director of Strategic Services
Larenz Taylor, ICMA Management Fellow
RECOMMENDED CITY COUNCIL ACTION:
* Approval of the resolution.
ITEM SUMMARY:
* On or about April 1, 2024, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2023, entitled it to additional system-wide revenues of $196.8 million.
* Application of the standards set forth in ACSC's RRM Tariff reduces the Company's request to $182.5 million, $132.6 million of which would be applicable to ACSC members. After reviewing the filing and conducting discovery, ACSC's consultants concluded that the system-wide deficiency under the RRM regime should be $149.6 million instead of the claimed $182.5 million.
* After several settlement meetings, the parties have agreed to settle the case for $164.7 million. Th...
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