2017-014 - Approving a Negotiated Settlement between the Atmos Steering Committee (“ACSC”) and Atmos Energy Corpo

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Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the City Council finds that the settled amount of an increase in revenues of $48 million on a system -wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid -Tex within the municipal limits arising from Atmos Mid -Tex's 2017 RRM filing, is in the public interest, and is consistent with the City's authority under Section 103.001 of the Texas Utilities Code. Section 3. That the existing rates for natural gas service provided by Atmos Mid- Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment A, are just and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional $48 million in revenue over the amount allowed under currently approved rates, as shown in the Proof of Revenues attached hereto and incorporated herein as Attachment B; such tariffs are hereby adopted. Section 4. That the ratemaking treatment for pensions and other post - employment benefits in Atmos Mid -Tex's next RRM filing shall be as set forth on Attachment C, attached hereto and incorporated herein. Section S. Consistent with Texas Utilities Code Section 104.055(c), Atmos Energy's recovery of federal income tax expense through the Rider RRM has been computed using the statutory income tax rate. In the event that a change in the statutory income tax rate is implemented during the Rider RRM Rate Effective Date, Atmos Energy shall reconcile the difference between the amount of federal income tax expense included in the Rider RRM calculation for the Rate Effective Date with the amount of federal income tax expense 3