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2020-034 - Atmos Energy Rate Adjustment - 2020 Rate Review
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2020-034 - Atmos Energy Rate Adjustment - 2020 Rate Review
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9/15/2020 12:27:02 PM
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9. This section finds that the meeting was conducted in compliance with the Texas Open <br />Meetings Act, Texas Government Code, Chapter 551. <br />10. This section is a savings clause, which provides that if any section is later found to be <br />unconstitutional or invalid, that finding shall not affect, impair, or invalidate the remaining <br />provisions of this Resolution. This section further directs that the remaining provisions of <br />the Resolution are to be interpreted as if the offending section or clause never existed. <br />11. This section provides for an effective date upon passage. December 1, 2020 represents a <br />two month delay in the Effective Date established by the RRM tariff. <br />12. This section directs that a copy of the signed Resolution be sent to a representative of the <br />Company and legal counsel for ACSC. <br />CONCLUSION <br />The Legislature's GRIP process allowed gas utilities to receive annual rate increases <br />associated with capital investments. The RRM process has proven to result in a more efficient and <br />less costly (both from a consumer rate impact perspective and from a ratemaking perspective) than <br />the GRIP process. Given Atmos Mid-Tex's claim that its historic cost of service should entitle it to <br />recover $141.2 million in additional system -wide revenues, the RRM settlement at $90 million for <br />ACSC Cities reflects substantial savings to ACSC Cities. ACSC's consultants produced a report <br />indicating that Atmos had justified increased revenues for ACSC Cities of at least $81 million. <br />Settlement at $90 million (equivalent to $81 million with a two-month delay) is fair and reasonable. <br />The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all <br />ACSC members to pass the Resolution before November 1, 2020. New rates become effective <br />December 1, 2020. <br />2557/32/8105318 <br />4 <br />
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