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<br />[8JAction <br /> <br />CITY OF PARIS, TEXAS <br />CITY COUNCIL AGENDA REQUEST <br />MEETING DATE: I October 8,2007 <br /> <br />o Discussion Dlnformation DRefer to: <br /> <br />SUBMITTED BY: <br /> <br />I Gene Anderson, Finance Director <br /> <br />DESCRIPTION: <br /> <br />Resolution suspending the effective date of Atmos Energy's requested rate <br />increase for the maximum period permitted by law to allow the City time to <br />evaluate the filing, determine whether the filing complies with law, and if lawful, to <br />determine what further strategy, including settlement, to pursue. <br /> <br />BACKGROUND INFORMATION: <br /> <br />The Railroad Commission issued a Final Order approving new system-wide rates <br />for customers of Atmos Energy's Mid-Tex Division in May. Residential rates were <br />increased by $10 million annually. Also in May, Atmos filed an application for its <br />fourth GRIP (infrastructure) surcharge in four years seeking to increase the rates <br />of all customers by $12 million annually. Despite both of these recent actions to <br />increase customers' rates, Atmos has filed an application with cities retaining <br />original jurisdiction over rates and services to increase system-wide rates by <br />another $52 million. This rate change would increase residential rates 8.27%, <br />commercial rates 22.72%, and industrial & transportation rates 38.95%. <br /> <br />The law provides that a rate request made by a natural gas utility cannot become <br />effective until 35 days following the filing of the application to change rates. The <br />law permits the City to suspend the effective date for 90 days. If the City does not <br />take action to suspend the filing, Atmos may begin charging the increased rates <br />after October 25,2007. <br /> <br />The City has participated in prior Atmos Gas rate matters with a coalition of cities <br />known as the Atmos Cities Steering Committee (ACSC). ACSC is a permanent <br />standing committee with 99 members who have passed resolutions authorizing <br />ACSC to intervene on behalf of their city in natural gas matters pending before the <br />Railroad Commission, the Courts, or the Legislature. A total of 141 cities are <br />currently working with ACSC with some of them participating on an ad hoc basis. <br /> <br />_.,_."........._.,..._~...-..._, ....,....,-_.""._.,.,~';,,-''"-,.,...._..,.,"'.,.......,.,,-, <br />