14-Deliberate and possibly act on ordinance approving the nnegotiated gas rates between the City of Paris and Atmos Energy Mid-Tex Division

Home Browse Search

CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 09/15/10 Council Date: Finance Gene Anderson 14. 09/27/10 RECOMMENDED MOTION: Motion to approve an ordinance approving the negotiated gas rates between the City of Paris and Atmos Energy Mid-Tex Division. POLICY ISSUE(S): Fiscal management The City of Paris, along with approximately 148 other cities served by Atmos Energy Mid-Tex Division ("Atmos Mid-Tex" ar"Company"), is a member of the Atmos Cities Steering Committee ("ACSC" or "Steering Committee"). On or about March 15, 2010, Atmos Mid-Tex filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism ("RRM") tariff approved by the City as part of the settlement of the Atmos Mid-Tex 2007 Statement of Intent to increase rates. This is the third RRM filing under a three year experimental program. The Atmos Mid-Tex RRM filing sought a$70.2 million rate increase. The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its request to increase rates. The Ordinance and attached rate and RRM tariffs are the result of negotiations between ACSC and the Company to resolve issues raised by ACSC during the review and evaluation of ACSC's RRM filing. The Ordinance resolves the Company's RRM filing by authorizing an increase in the Company's base rate of $27 million effective for bills rendered on or after October 1, 2010. Additionally, the Ordinance authorizes supplemental revenue of $3.4 million to be recovered through the customer charge component of rates to cover direct costs associated with a steel service line replacement program. The monthly bill impact for the average residential customer will be a$1.40 increase (about a 3.15% increase in the total bill).The ACSC Executive Committee and ACSC legal counsel recommend that all ACSC Cities adopt the Ordinance implementing the rate change. BOARD/COMMISSION RECOMMENDATION: N/A EXHIBITS: Ordinance; Staff report ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $NA ❑ Department Report ❑ Resolution Budgeted Amt. $NA ❑ Presentation Z Ordinance y'I'D Actual $NA ❑ Public Hearing ❑ Other Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: E Administration Z Ciry Clerk ❑ Communiry Development ❑ EMS/IT Z Finance ❑ Fire ❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utiliries City of Paris 124 Revised 2/04/08