Title
Resolution approving a settlement agreement between ATM Cities and Atmos Energy.
Summary
ATM Cities have reached a settlement with Atmos Energy regarding the company's requested $9 million base rate increase and a proposed increase for the cost of the pipeline replacement program. Negotiations have been ongoing between Atmos Energy and the ATM cities since last year. Atmos Energy has agreed to forego the requested $9 million dollar increase to the base rates. The increase for the ongoing pipeline replacement program will be $.35 with $.06 of that offset by a reduction in consumption or volumetric charges. A commercial customer will see an increase of $1.22 per month. Participation in the ATM cities has resulted in a very favorable result for our citizens. Please find the attached agenda information sheet from Jim Boyle of Herrera & Boyle, PLLC, legal counsel for ATM Cities, which explains what the settlement entails. The resolution and new tariffs are also attached.
Prior City Council Action
The City Council passed a resolution on September 14, 2010 approving a settlement for base rates for natural gas and the pipeline replacement program. The City Council approved a resolution on November 9, 2010 authorizing the intervention at the Railroad Commission concerning the Atmos Energy filing for an additional increase in the base rates and those rates associated with the pipeline replacement program by. That resolution included a continuation of the RRM (Rate Review Mechanism) between the ATM cities and Atmos that had been ongoing for the previous three years.
Deadline for City Council Action
September 1, 2011.
Fiscal Impact
This settlement results in no base rate increases and slight customer increases for the pipeline replacement program. There is minimal fiscal impact to the City of Pflugerville.
Staff Recommendation
Approve the resolution.
Drafter
Lauri Gillam, Assistant City Manager