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Item No. 13 <br />Memorandum <br />TO: Mayor, Mayor Pro -Teen, and City Council <br />Grayson Path, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: 2023 ATMOS RATE REVIEW MECHANISM (RRM) SETTLEMENT <br />DATE: August 14, 2023 <br />BACKGROUND: Atmos made a rate filing requesting 165.9 million dollars in additional revenues <br />from its customers system wide. The rate increase request was reviewed by consultants for the <br />Atmos Cities Steering Committee (ACSC) of which Paris is a member. <br />STATUS OF ISSUE: Limitations found in the Rate Review Mechanism used by Atmos to file for <br />their rate increase and negotiations between Atmos and ACSC resulted in a 23.9 million dollar <br />reduction in requested revenues by Atmos ($142 million vs. $165.9 million). The effective date of <br />the rate increase will be October 1, 2023. The ordinance before the Council reflects the negotiated <br />rates. This rate increase varies from 4.43% to 7.66% depending on customer class and volumes <br />consumed. <br />BUDGET: This will have minimal impact on the City budget. <br />RECOMMENDATION: Motion to approve an ordinance and related attachments granting Atmos <br />an increase in revenues as recommended by the Atmos Cities Steering Committee. <br />