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14-Deliberate and possibly act on ordinance approving the nnegotiated gas rates between the City of Paris and Atmos Energy Mid-Tex Division
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14-Deliberate and possibly act on ordinance approving the nnegotiated gas rates between the City of Paris and Atmos Energy Mid-Tex Division
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8/22/2012 2:35:46 PM
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CITY CLERK
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Agenda
CITY CLERK - Date
9/27/2010
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ATMOS ENERGY CORPORATION <br />MID-TEX DNISION <br />Ezhibit A to Settlement Agreement <br />Attachment A to Ordinance <br />RIDER: <br />RRM - RATE REVIEW MECHANISM <br />APPLICABLE TO: <br />All Cities except the City of Dallas and all unincorporated areas <br />EFFECTIVE DATE: <br />Bilis Rendered on or after 1010112010 <br />1. Purpose: <br />This mechanism is designed to provide annual earnings transparency. All rate calculations under this <br />tariff shall be made on a system wide basis. If, through the implementation of the provisions of this <br />mechanism, it is determined that rates should be decreased or increased, then rates will be adjusted <br />accordingly in the manner set forth herein. The rate adjustments implemented under this mechanism will <br />reflect annual changes in the Company's cost of service and rate base. 7his Rider RRM will be effective <br />for the period commencing with the Company's RRM filing on April 1, 2011, and cancluding With the <br />implementation of new, final rates established pursuant to the general rate case that Atmos will file on or <br />before June 1, 2013. <br />II. Definitions <br />a) The Annua! Evaluation Date shall be the date the Company will make its annual filing under this <br />mechanism. The Annual Evaluation Date shall be no later than April 1, of each year. This filing shall be <br />effective in electronic form where practicable. <br />b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid- <br />Tex operating area and shared services operations. Audited Financial Data shall not require the <br />schedules and information provided under this tariff to undergo a separate financial audit by an outside <br />auditing firm similar to the Company's annual financial audit. <br />c) The Evaluation Period is defined as the twelve month period ending December 31, of each catendar <br />year. <br />d) The Rate Effective Period is defined as the later of the twelve month period for which rates <br />determined under this mechanism will be in effect or subsequent rates are implemented. <br />e) Per Connection Basis is defined as the existing average number of Mid-7ex active meters to <br />customers during the Evaiuation Period. <br />f} Final Order is defined as the most recent order establishing the Company's latest effective rates for <br />the area in which the mechanism is implemented, and shall include municipal rate ordinances and <br />resolutions. <br />III. Rate Review Mechanism <br />The Company shall file with each regulatory authority having original jurisdiction over the Company's <br />rates the schedule5 specified below for the Evaluation Period, with the filing to be made by the Annual <br />Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the <br />Company's Audited Financial Data, as adjusted, and provided in the same farmat as Atmos' RRM filing <br />with municipalities on March 15, 2010, will exclude a true-up computation, but will include the following: <br />a) Evaluation Period ending balances for actual gross plant in service, accumulated depreciation, <br />accumulated deferred income taxes, inventory, working capital, and other rate base components <br />will be used for the calculation of rates for the Rate Effective Period. The ratemaking treatments, <br />principles, findings and adjustments included in the Final Order will apply. Regulatory <br />adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash <br />working capital will be calculated using the lead/lag days approved in the Final Order. <br />Accumulated deferred income taxes (ADIT) will be calculated using the methodology used in the <br />Final Order. The RRM Schedules & Information section of this tariff identifies those ADIT <br />components to be included in the calculation of rate base for both the Evaluation Period and Rate <br />Effective Period calculations. <br />I <br />
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