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11 - 2020 Atmos Rate Review Mechanism (RRM) Settlement
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11 - 2020 Atmos Rate Review Mechanism (RRM) Settlement
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Legislature, and that will establish rates for the ACSC Cities based on the system -wide cost of <br />serving the Atmos Mid -Tex Division; and <br />WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in <br />2018; and <br />WHEREAS, on about March 31, 2020, Atmos Mid -Tex filed its 2020 RRM rate request <br />with ACSC Cities based on a test year ending December 31, 2019; and <br />WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2020 RRM filing <br />through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve <br />issues identified in the Company's RRM filing; and <br />WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, <br />recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $90 <br />million applicable to ACSC Cities with an Effective Date of December 1, 2020; and <br />WHEREAS, ACSC agrees that Atmos plant -in-service is reasonable; and <br />WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed <br />from future reasonableness evaluation of costs associated with incidents related to gas leaks; and <br />WHEREAS, the two month delayed Effective Date from October 1 to December 1 will <br />save ACSC ratepayers approximately $9 million off new rates imposed by the attached tariffs <br />(Exhibit A), the impact on ratepayers should approximate the reasonable value of the rate filing <br />found by the ACSC Consultants' Report, which was $81 million; and <br />WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with <br />the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are <br />just, reasonable, and in the public interest; and <br />2 <br />
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