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Item No. 20 <br />TO: Mayor, Mayor Pro -Tem, and City Council <br />Robert Vine, Interim City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: 2024 ATMOS RATE REVIEW MECHANISM (RRM) SETTLEMENT <br />DATE: September 23, 2024 <br />BACKGROUND: Atmos made a rate filing requesting $196.8 million dollars in additional <br />revenues from its customers system wide. The rate increase request was reviewed by consultants <br />for the Atmos Cities Steering Committee (ACSC) of which Paris is a member. <br />STATUS OF ISSUE: The City must act by September 30, 2024. Limitations found in the Rate <br />Review Mechanism used by Atmos to file for their rate increase reduced the Atmos request to <br />$182.5 million. Negotiations between Atmos and ACSC resulted in further reducing the request <br />to $164.7 million. The ordinance before the Council reflects the negotiated rates. This rate <br />increase will cost the average residential customer $5.52 per month (6.84%). The average <br />commercial customer will pay $13.39 more each month (3.44%). The effective date of the rate <br />increase will be October 1, 2024. <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 />