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File #: 17-6750    Version: 1 Name: First reading of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division regarding the company's 2017 Rate Review Mechanism Filings
Type: Ordinance Status: Held in Council
File created: 5/9/2017 In control: City Manager's Office
On agenda: 6/6/2017 Final action: 6/6/2017
Title: Second and final reading of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division regarding the company's 2017 Rate Review Mechanism Filings
Attachments: 1. 2017.05.02 ORDINANCE RE settlement between ACSC and Atmos Energy Mid-Tex resolving the 2017 RRM Attachments.pdf
From
Gloria Colvin

Title
Second and final reading of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division regarding the company's 2017 Rate Review Mechanism Filings

Presenter
Gina Alley, Senior Assistant to City Manager

Recommended Action
Approve

Analysis
Settlement agreement with Atmos Mid- Tex. Effective for bills rendered on or after June 1, 2017, the ordinance and settlement approve under the RRM tariff changes in the consumption charge from $.11378 per Ccf to $.1400 per Ccf.

Financial Consideration
The monthly bill impact for the typical residential customer consuming 46.8 Ccf will be an increase of $2.04 (about a 3.87% increase in the base bill). The typical commercial customer will see an increase of $6.27 or 2.37%.

Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, approving a NEGOTIATED settlement between the atmos cities steering committee (“ACSC”) and ATMOS ENERGY CORP., mid-tex DIVISION regarding the company’s 2017 rate review mechanism filings; declaring EXISTING rates to be unreasonable; adopting tariffs that reflect rate adjustments consistent with the NEGOTIATED SETTLEMENT; finding the rates to be set by the settlement tariffs to be just and reasonable and in the public interest; REQUIRING RECONCILIATION AND RATE ADJUSTMENTS IF FEDERAL INCOME TAX RATES CHANGE; TERMINATING THE RRM PROCESS FOR 2018 PENDING RENEGOTIATION OF RRM TERMS AND CONDITIONS; REQUIRING THE COMPANY TO REIMBURSE ACSC’s REASONABLE RATEMAKING EXPENSES; determining that this ordinance was passed in accordance with the REQUIREMENTS of the texas open meetings act; ADOPTING A SAVINGS CLAUSE; declaring an effective date; AND REQUIRING Delivery OF THIS ORDINANCE TO the company and the ACSC’s legal counsel
WHEREAS, the City of Grand Prairie, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority with a...

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