Title
Approving a resolution adopting rate schedule, "RRM - Rate Review Mechanism" for Atmos Energy Corporation, Mid-Tex Division, to be in force in the City of Pflugerville for a period of time as specified in the rate schedule.
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.
The proposed resolution establishes the basis for rate increase computations for Atmos through June of 2017. The Rate Review Mechanism (RRM) will be used annually to calculate a system-wide cost of service that will be used to adjust applicable rate schedules that will become effective on June 1 for the years 2014-2017 for Atmos customers. An rate adjustments during this term will result from collaboration between Atmos and the cities that it serves. The RRM places a cap on the amount that a customer charge can increase annually and specifies no customer increase as a result of the first RRM filing in 2013. The RRM is preferable to either a full-blown rate case or application of the Gas Reliability Infrastructure Program which would allow Atmos to increase its rates year after year with no meaningful participation by cities. Further information regarding this process is available in the Agenda Information Sheet attached to this item.
Atmos Energy Corporation has notified the coalition members of their support of this recommendation.
Deadline for City Council Action
The schedule in the revised RRM tariff as written calls for Atmos to make its filing for 2013 by July 15, 2013. Approval of this resolution by the City of Pflugerville is required during June of 2013.
Fiscal Impact
The fiscal impact to the city will be reflected in the Atmos bills for city facilities. The total for fiscal year 2012 was approximately ...
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