Title
Approving a resolution 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., 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. This increase is the fourth application under the revised Rate Review Mechanism that was approved by all parties in the summer of 2013.
On about March 1, 2016, Atmos submitted its fourth application under the current RRM seeking a system-wide rate increase of $35.4 million (“2016 RRM”), which equates to an increase of about 6.04%. After review of Atmos’ application, the Railroad Commission’s prior rulings, and Atmos’ responses to requests for information submitted to Atmos by ATM’s Special Counsel and consultants, ATM’s consultants concluded that Atmos merited an increase of about $10.8 million. ATM’s Special Counsel presented its findings to Atmos, with which Atmos dis...
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