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<br />August 15,2007 <br /> <br />depreciation, taxes, and class allocations) are fixed until the next full rate proceeding,7 so <br />it would be reasonable to expect that the factors used to allocate shared services expenses <br />also be fixed from the last proceeding. <br /> <br />Results <br /> <br />Removing these additional categories of costs results in a reduction to 2006 net plant <br />investment of $3.4 million. Applying this reduction to the rates as proposed by Atmos <br />yields the revised charges reflected in Table 5: <br /> <br />Rate Schedule Revised Charge per Month Difference <br />Rate R - Residential Sales $0.57 $0.02 <br />Rate C - Commercial Sales $1.44 $0.04 <br />Rate I - Industrial Sales $28.07 $0.83 <br />Rate T - Transportation $28.07 $0.83 <br /> <br />Table 5 <br /> <br />Atmos also proposed a revised methodology to calculate ad valorem taxes based on <br />actual 2006 tax payments due to the recent changes in property tax law. If this alternative <br />methodology is adopted, property-related taxes are reduced by $67,368, and the interim <br />adjustment is reduced by a further $0.01 for commercial customers and $0.16 for <br />industrial and transportation customers. The adjustment is too small to materially affect <br />residential customers. <br /> <br />Let me know if you have any questions. <br /> <br />7 TEX UTIL CODE ~ 104.301 (d). <br /> <br />4 <br />