Agenda Information Sheet
DEPARTMENT: Legal Department
ACM/CM: Aaron Leal, Interim City Attorney
Date: May 23, 2017
SUBJECT
Title
Consider approval of a resolution by the City of Denton, 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; and providing an effective date.
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ATMOS TEXAS MUNICIPALITIES
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. (Mr. Mike Brosch and Mr. Steve Carver) 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.
HISTORY OF PRIOR RATE INCREASES
Increase Under Previous Version of RRM (Approved October 2010)
On March 15, 2010, Atmos requested an increase of $70.1 million in its system-wide rates. ATM and Atmos settled on an increase of $27 million for prospective rates.
Increase Under Previous Version of RRM (Approved September 2011)
On April 1, 2011, Atmos filed a request to increase rates system-wide by $15.6 million. ATM and Atmos agreed to not increase base rates and permitted Atmos to recover $6.6 million for the steel pipe replacement program.
General Rate Case (Approved December 2012)...
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