Title
Approving a resolution with the caption reading: a RESOLUTION BY THE CITY OF PFLUGERVILLE, TEXAS (“CITY”), APPROVING A CHANGE IN THE RATES OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION (“ATMOS”) AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES (“ATM”) UNDER THE RATE REVIEW MECHANISM; FINDING THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
Summary
The City is a member of the Atmos Texas Municipalities (ATM). The ATM group was organized by a number of municipalities served by Atmos and has been represented by the law firm of Herrera & Boyle, PLLC through Mr. Alfred R. Herrera. ATM also retained the services of a consulting firm, Utilitech, Inc. represented by Mr. Mike Brosch and Mr. Steve Carver, to assist in reviewing an application submitted by the Atmos Energy-Mid-Tex Division (Atmos) that seeks to increase its rates and change its rates. Herrera & Boyle, PLLC and Utilitech, Inc. have participated in prior rate cases involving Atmos and have extensive knowledge and experience in rate matters affecting Atmos’ rates, operations, and services.
Attached to this agenda item is an information sheet explaining in more detail the history of the processes that have been followed and the proposed settlement agreement.
On about February 28, 2014, Atmos filed its second request to increase rates under the current iteration of the RRM (the “2014 RRM”) and requested a system-wide increase of about $45.6 million, 9.2% increase in revenue. ATM’s consultants’ preliminary assessment indicated that Atmos warranted at most an increase of $26.6 million. A settlement was not reached; the ATM cities denied Atmos’ proposed increase; and, Atmos appealed ATM’s denial of its revenue increase to the Railroad Commission. On appeal Atmos revised its request downward ...
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