Laserfiche WebLink
<br /> <br /> <br /> <br /> <br /> <br /> STAFF REPORT <br /> <br /> <br /> The City of Paris, along with approximately 153 other cities served by Atmos Energy <br /> Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), is a member of the Atmos Cities <br /> Steering Committee ("ACSC" or "Steering Committee"). <br /> <br /> Atmos Mid-Tex filed a Statement of Intent on January 31, 2012, seeking to increase <br /> system-wide base rates (which exclude the cost of gas) by approximately $49 million or 11.94%. <br /> However, the Company is requesting an increase of 13.6%, excluding gas costs, for its <br /> residential customers. Additionally, the application would change the way that rates are <br /> collected, by increasing the residential fixed-monthly (or customer) charge from $7.50 to $18.00 <br /> and decreasing the consumption charge from $0.25 per 100 cubic feet ("ccf') to $0.07 per ccf. <br /> <br /> The law provides that a rate request made by a gas utility cannot become effective until at <br /> least 35 days following the filing of the application to change rates. Atmos has proposed an <br /> effective date of March 6, 2012. The law permits the City to suspend the rate change for 90 days <br /> after the date the rate change would otherwise be effective. If the City fails to take some action <br /> regarding the filing before the effective date, Atmos' rate request is deemed administratively <br /> approved. <br /> <br /> The purpose of the resolution is to extend the effective date of Atmos Mid-Tex's <br /> proposed rate increase to give the City time to review the rate-filing package. The resolution <br /> suspends the March 6, 2012 effective date of the Company's rate increase for the maximum <br /> period permitted by law to allow the City, working in conjunction with the other ACSC cities, to <br /> evaluate the filing, determine whether the filing complies with law, and if lawful, to determine <br /> what further strategy to pursue, including settlement and ultimately to approve reasonable rates. <br /> <br /> <br /> The City Staff recommends adoption of the resolution suspending the effective date of <br /> Atmos Mid-Tex's proposed rate increase. Representatives from Atmos Mid-Tex have indicated <br /> that they are not opposed to the suspension of the increase at this time. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> 1790994.1 7311 <br />