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Steel Service Line Replacement: <br />Under pressure from the Railroad Commission to establish a comprehensive program to <br />replace service lines that contain steel which is subject to corrosion and leaks, ACSC has worked <br />with Atmos Mid-Tex to establish a risk based approach to steel service line replacement that <br />accomplishes the following goals: <br />l. Replace all service lines throughout the Mid-Tex Region with the highest degree <br />of risk within two years; <br />2. Coordination between ACSC city members and Atmos Mid-Tex to minimize <br />disruption of rights of way without compromising safety; <br />3. To minimize and spread the rate impact on customers of the replacement <br />program, the service lines with little relative risk of leaks should be replaced over a 10-year <br />period; and <br />4. Current recovery of incremental (above and beyond normal maintenance and <br />repair addressed in RRM proceedings) direct (excluding Atmos Mid-Tex overheads) cost of <br />service line replacement should be permitted as an adder to customer charges. <br />Fulfillment of these goals in this case will lead to $00.15 and $00.41 added to residential <br />and commercial customer charges, respectively. The customer charge assessment may not <br />exceed $00.44 and $1.22 for residential and commercial customers, respectively, prior to the <br />entry of a Final Order in the next system-wide Statement of Intent rate proceeding. <br />Pursuant to the Settlement Agreement, 100,000 steel service lines will be replaced prior <br />to September 30, 2012. <br />Atmos RRM Ordinance Staff Report 3 <br />157 <br />