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. to assist in reviewing an application submitted by the Atmos Energy-Mid-Tex Division (Atmos) that seeks to increase 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.
The City of Pflugerville along with the other ATM cities approved a Rate Review Mechanism (RRM) with Atmos for the evaluation of proposed rate changes. The RRM allows ATM to work with Atmos and have an opportunity to review relevant information related to the rate increase request, provides limited rate increase assurance, and reimburses the ATM cities for any cost to do the review. This RRM review is the last one under the current agreement. ATM will be working with our consultants in the next several months to decide what changes we would like to see in a future RRM including altering the return on equity that is a major component of any rate consideration.
The cities have been communicating about the various options available to us since Atmos' initial filing on March 1, ...
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