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Item No. 7 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: ATMOS RATE INCREASE <br />DATE: August 28, 2018 <br />BACKGROUND: On April 1, 2018, Atmos filed a rate request pursuant to the rate review <br />mechanism allowed for interim rate adjustments. The Company claimed that its cost -of -service <br />in the test year ending December 31, 2017, entitled it to additional system -wide revenues of <br />$42.0 million. <br />STATUS OF ISSUE: The Atmos Cities Steering Committee (ACSQ, of which Paris is a <br />member, hired consultants to review Atmos' rate request. Under the standards set forth in the <br />rate review mechanism, Atmos reduced its request to $27.4 million. Additional negotiations <br />resulted in the rate increase being lowered to $24.9 million system wide. ACSC believes the <br />reduced rate amount is fair to both Atmos and the cities it serves and recommends approval of <br />the negotiated rate. The Effective Date for new rates would be October 1, 2018. <br />BUDGET: No impact. <br />RECOMMENDATION: Motion to approve a resolution authorizing a rate increase for Atmos <br />Energy Corporation. <br />