Title
Consider adopting Ordinance No. 3325 approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division that adopts new natural gas rates for the City of Farmers Branch and take appropriate action.
Body
BACKGROUND:
The City of Farmers Branch is served by Atmos Energy Corporation, Mid-Tex Division. The City is also a member of the Atmos Cities Steering Committee (ACSC), a coalition of approximately 165 cities that unite to address gas utility rate and franchise issues related to Atmos Energy Corporation. In February 2014, Atmos Mid-Tex filed its second annual filing under the renewed Rate Review Mechanism (RRM) Tariff, seeking an increase of $45.7 million. Although the ACSC attempted to reach a settlement with Atmos as it had in past years, the wide differences between Atmos and the ACSC's consultants' recommendations made a compromise impossible. On the recommendation of the ACSC Executive Committee and ACSC's legal counsel, the City in 2014 adopted a Resolution denying the requested rate increase. Atmos appealed the City's denial to the Railroad Commission of Texas.
While the parties were waiting for a response from the Railroad Commission, on February 27, 2015, Atmos Mid-Tex filed with the City another rate increase request under the RRM Tariff, seeking additional revenues in the amount of $28.8 million. The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its 2015 request to increase rates.
DISCUSSION:
The Ordinance and attached Settlement Agreement and tariffs are the result of negotiation between the ACSC and Atmos to resolve issues raised by ACSC during the review and evaluation of Atmos Mid-Tex's 2014 and 2015 filings. The Ordinance and Settlement tariffs approve rates that will increase the Company's revenues by $65.7 million for the Mid-Tex Rate Division, effective for bills rendered on or after June 1, 2015. The m...
Click here for full text