Laserfiche WebLink
Rate Review Mechanism <br />Fact Sheet <br />*The Rate Review Mechanism (RRM) was created in 2008 as part of a collaborative agreement <br />between ACSC and Atmos. It replaces the unworkable and contentious Gas Reliability <br />Infrastructure Program (GRIP) surcharge process. <br />*The RRM authorizes cities to meaningfully review and dispute the company's annual rate <br />filings in an expedited rate proceeding at the city level. This authority was lacking under the <br />GRIP process. <br />*The RRM is a substitute for GRIP filings during the three-year trial period (2008 - 2010). <br />*The RRM permits the Company to seek an annual review of its revenues, estimated cost of <br />operations, and capital investments. In most cases, the company cannot seek rate adjustments <br />greater than 5 percent. The Company must provide evidence as part of the annual review <br />process that cities can assess and, if necessary, challenge. <br />*The RRM process allows Atmos to seek a surcharge from ratepayers if its anticipated expenses <br />exceed its anticipated revenues for a 12 month period. However, if the Company's revenues <br />exceed its authorized rate of return, it must issue refunds. <br />Costs Expresslv Prohibited from Recoverv Under the RRM: <br />First class airfare, travel, meals or entertainment for an employee's spouse, alcohol, sports <br />events, entertainment, arts and cultural events, sponsorship of sports, arts or cultural events, and <br />social club membership dues. <br />The RRM is applicable only to the Company's base rates - the cost of delivering natural <br />gas to customers. The commodity price of natural gas is a pass-through cost to customers <br />that can change monthly based upon the price of natural gas. <br />RRM Bill Impacts: <br />Pursuant to the negotiated agreement between Atmos and the Steering Committee, the <br />tariffs implementing the RRM will increase rates by $2.6 million. The average monthly <br />customer impact by class will be: <br />Residential (4.7 Mcf/month) -$0.15/month increase (0.22% overall increase) <br />Commercial (36.1 Mcf/month) -$0.26/month increase (0.06% overall increase) <br />Industrial (3480 MMBtu/month) -$46.80/month decrease (1.96% overall decrease) <br />150 <br />