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09-E Atmos Energy Suspension
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09-E Atmos Energy Suspension
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Last modified
11/17/2005 11:15:09 AM
Creation date
1/6/2005 6:11:30 AM
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AGENDA
Item Number
09-E ATMOS
AGENDA - Type
RESOLUTION
Description
Atmos Energy Suspension Resolution
AGENDA - Date
1/10/2005
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<br />Gas Reliability Infrastructure Program (G. R. I. P.) <br />Texas Utilities Code § 104.301 - Interim Adjustment for Changes in Investment <br /> <br />What is it? <br /> <br />. Rate adjustment that allows utilities to recover additional invested capital without filinJ! a <br />full rate case <br /> <br />Who can use it? <br /> <br />. <br /> <br />Gas utility with new invested capital not already included in existing rates <br />But onlv ¡futility has filed rate case in last two years <br /> <br />. <br /> <br />What customers are affected and how? <br /> <br />. <br /> <br />All customers <br />Applied to monthly customer charge or initial block rate <br />Allocated among customer groups in same manner as current rates (GUD No. 9400) <br /> <br />. <br /> <br />. <br /> <br />How is adjustment amount calculated? <br /> <br />. <br /> <br />Intended to capture new investment costs in excess of nonnal plant replacement due to <br /> <br />. <br />agmg <br />Cannot include annual investment anticipated and included in existing rates as <br />depreciation expense <br />Costs that can be included are return (profit) on investment, depreciation expense and <br />certain taxes <br />Factors used to calculate costs must be the same as those reflected in order, ordinance or <br />settlement agreement approving current rates <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />What is required of utility? <br /> <br />. Tariff or rate schedule must be filed with appropriate regulatory authority (City and/or <br />Railroad Commission) 60 days before proposed implementation date <br />. Notice to all affected customers must be provided within 45 days of filing with regulatory <br />authority <br />. After implementation, utility must file the following infonnation annually: <br />- Reports describing all new investments and retired plant <br />- Costs, need and customers benefited by the new investment must be stated <br />- Annual earnings monitoring report showing earnings in past year <br />- If earnings are more than 75 basis points (.75%) above currently approved rate of <br />return, utility must explain why earnings are not just unreasonable <br />. Adjustment must be recalculated annually <br />. Full rate case must be filed no later than five and one-half (5V2) years after <br />implementation <br /> <br />What is role of cities? <br /> <br />. <br /> <br />Within 60 days after filing, a city may suspend implementation of proposed adjustment <br />Until incremental increase in rates has been reviewed as part of a full rate case, regulatory <br />authority may disallow adjustment and order utility to refund any amounts collected <br />Regulatory authority may open inquiry under Texas Utilities Code § 104.151 and set new <br />rates if rates are found to be unreasonable <br /> <br />. <br /> <br />. <br /> <br />1668\12\Handout <br />
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