10 - 2022 Atmos Rate Review Mechanism (RPM) Settlement

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Item No. 10 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: 2022 ATMOS RATE REVIEW MECHANISM (RRM) SETTLEMENT DATE: August 8, 2022 BACKGROUND: On April 1, 2022, Atmos made a filing requesting 141.3 million dollars in additional revenues from its customers system wide. The rate increase request was reviewed by consultants for the Atmos Cities Steering Committee (ACSC) of which Paris is a member. STATUS OF ISSUE: Negotiations between Atmos and ACSC resulted in just over a 26.3 million dollar reduction in requested revenues by Atmos ($115 million vs. $141.3 million). The effective date of the rate increase will be October 1, 2022. The ordinance before the Council reflects the reduced proposed rates. The typical residential customer will experience a $4.60 per month increase in their bill (6.7%). The typical commercial customer will see a monthly increase of $14.34 or (4.3%). BUDGET: This will have minimal impact on the City budget. RECOMMENDATION: Motion to approve an ordinance and related attachments granting Atmos an increase in revenues as recommended by the Atmos Cities Steering Committee.