Title
Approving a resolution with the caption reading: RESOLUTION BY THE CITY OF PFLUGERVILLE, TEXAS (“CITY”) SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN CONNECTION WITH THE RATE INCREASE FILING OF ATMOS ENERGY CORPORATION ON OR ABOUT JANUARY 31, 2012; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; AUTHORIZING PARTICIPATION IN RELATED RATE PROCEEDINGS; AUTHORIZING THE RETENTION OF SPECIAL COUNSEL; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
Summary
The City of Pflugerville has participated in prior rate cases as a member of the Atmos Texas Municipalities (ATM) coalition. This coalition consists of 53 Texas cities who are able to address their concerns with Atmos rate proposals as a group. Herrera & Boyle, PLLC, has provided representation for the ATM. At this time, the firm has contacted the City of Pflugerville with a recommendation to continue to participate in the coalition and to suspend the proposed Atmos Energy increase for 90 days to allow the coalition time to review the rate application. The attached agenda information sheet and resolution have been provided to the ATM for the cities' consideration by the firm.
Prior City Council Action
The ATM coalition has been successful in mitigating Atmos rate increases. In September of 2010, the coalition was able to negotiate a rate increase that was 61% less than requested by Atmos. The settlement in August of 2011 related to pipeline replacement for Atmos eliminated any increase to the base rate, resulting in an additional monthly residential customer charge of $.35.
Deadline for City Council Action
The City must take action no later than March 6, 2012. If no action is taken, the rates are deemed approved by operation of law.
Fiscal Impact
Atmos' application seeks a total revenue increase of about $49.0 million. Residential customers would see a 13.6% increase in the average monthly bill. The structuring of the bill increases the fixed customer charge and reduces the charges based upon consumption. There is no direct cost to the City for participating in the coalition as reasonable rate case expenses will be recovered from Atmos.
Staff Recommendation
Approve the resolution.
Drafter
Lauri Gillam
Assistant City Manager