HomeMy WebLinkAboutOrdinance 25685-09-2022 ORDINANCE NO. 25685-09-2022
AN ORDINANCE APPROVING A NEGOTIATED SETTLEMENT
BETWEEN THE ATMOS CITIES STEERING COMMITTEE ("ACSC")
AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE
COMPANY'S 2022 RATE REVIEW MECHANISM FILING; DECLARING
EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS
THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY
THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND
REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN
ATTACHMENT ESTABLISHING A BENCHMARK FOR PENSIONS AND
RETIREE MEDICAL BENEFITS; REQUIRING THE COMPANY TO
REIMBURSE ACSC'S REASONABLE RATEMAKING EXPENSES;
DETERMINING THAT THIS ORDINANCE WAS PASSED IN
ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN
MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN
EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS
ORDINANCE TO THE COMPANY AND THE ACSC'S LEGAL COUNSEL.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
WHEREAS, the City of Fort Worth, Texas ("City") is a gas utility customer of Atmos
Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a regulatory authority
with an interest in the rates, charges, and services of Atmos Mid-Tex;
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a
coalition of similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities") that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates charged in
the Atmos Mid-Tex service area;
WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review
Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC Cities as a
substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by the
Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of
serving the Atmos Mid-Tex Division;
WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in 2018;
WHEREAS, on about April 1, 2022,Atmos Mid-Tex filed its 2022 RRM rate request with
ACSC Cities based on a test year ending December 31, 2021;
Ordinance No.25685-06-2022 Page I of 4
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2022 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants,to resolve issues
identified in the Company's RRM filing;
WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants,
recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of$115 million
on a system-wide basis with an Effective Date of October 1, 2022;
WHEREAS, ACSC agrees that Atmos plant-in-service is reasonable;
WHEREAS,with the exception of approved plant-in-service,ACSC is not foreclosed from
future reasonableness evaluation of costs associated with incidents related to gas leaks;
WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent
with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest;
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Attachment 2); and
WHEREAS,the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses
associated with RRM applications.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
1. That the findings set forth in this Ordinance are hereby in all things approved.
2. That, without prejudice to future litigation of any issue identified by ACSC, the
City Council finds that the settled amount of an increase in revenues of$115 million on a system-
wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates,
operations, and services offered by Atmos Mid-Tex within the municipal limits arising from
Atmos Mid-Tex's 2022 RRM filing, is in the public interest, and is consistent with the City's
authority under Section 103.001 of the Texas Utilities Code.
3. That despite finding Atmos Mid-Tex's plant-in-service to be reasonable, ACSC is
not foreclosed in future cases from evaluating the reasonableness of costs associated with incidents
involving leaks of natural gas.
Ordinance No.25685-06-2022 Page 2 of 4
4. That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just
and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $115
million on a system-wide basis, over the amount allowed under currently approved rates. Such
tariffs are hereby adopted.
5. That the ratemaking treatment for pensions and retiree medical benefits in Atmos
Mid-Tex's next RRM filing shall be as set forth on Attachment 2,attached hereto and incorporated
herein.
6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of ACSC
in processing the Company's 2022 RRM filing.
7. That to the extent any resolution or ordinance previously adopted by the City
Council is inconsistent with this Ordinance, it is hereby repealed.
8. That the meeting at which this Ordinance was approved was in all things conducted
in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
9. That if any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining
provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
10. That consistent with the City Ordinance that established the RRM process, this
Ordinance shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after October 1, 2022.
11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan,
Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato, General Counsel to
ACSC,at Lloyd Gosselink Rochelle&Townsend,P.C.,816 Congress Avenue, Suite 1900,Austin,
Texas 78701.
(signature page follows)
Ordinance No.25685-06-2022 Page 3 of 4
PASSED AND APPROVED this 13t'day of September 2022.
-J�115 U I , iat
Mayor
ATTEST: APPROVED AS TO FORM
Ja e S. Goodall, City Secretary eann Guzman, Cg Attorney
OF FORT
�XP;s
Ordinance No.25685-06-2022 Page 4 of 4
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R—RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge 'Amount
Customer Charge per Bill $21.55 per month
Rider CEE Surcharge $ 0.05 per month'
Total Customer Charge $21.60 per month
Commodity Charge—All Ccf $0.36223 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a)and Part(b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
'Reference Rider CEE-Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2022.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C—COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $63.50 per month
Rider CEE Surcharge ($ 0.01) per month'
Total Customer Charge $63.49 per month
Commodity Charge—All Ccf $0.14137 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a)and Part(b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Reference Rider CEE-Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2022.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 1,204.50 per month
First 0 MMBtu to 1,500 MMBtu $0.4939 per MMBtu
Next 3,500 MMBtu $0.3617 per MMBtu
All MMBtu over 5,000 MMBtu $0.0776 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled"Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 1,204.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.4939 per MMBtu
Next 3,500 MMBtu $ 0.3617 per MMBtu
All MMBtu over 5,000 MMBtu $0.0776 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part(b)of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of(i) $0.10 per MMBtu, or(ii) 150%of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled"Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNAi = WNAFi x qq
Where q; is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2022
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 10.58 0.1422 88.85 0.6666
Austin 9.90 0.1372 233.56 0.7819
Dallas 14.17 0.1938 186.38 0.9394
Waco 10.07 0.1308 140.10 0.7170
Wichita 11.43 0.1398 131.57 0.5610
Falls
Weather Normalization Adjustment(WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/13/22 M&C FILE NUMBER: M&C 22-0692
LOG NAME: 21ADOPTION OF ATMOS 2022 RRM
SUBJECT
(ALL)Adopt Ordinance Approving Negotiated Settlement and Establishing Maximum Permitted Rates and Charges that Atmos Energy
Corporation d/b/a Atmos Energy Corporation, Mid-Tex Division, may Assess Customers in the City of Fort Worth Effective October 1,2022
RECOMMENDATION:
It is recommended that the City Council adopt the attached Ordinance establishing maximum permitted rates and charges that Atmos Energy
Corporation,d/b/a Atmos Energy Corporation, Mid-Tex Division, may assess customers in the City of Fort Worth,effective October 1,2022,
pursuant to a negotiated settlement of Atmos'proposed rate increase under its 2022 Rate Review Mechanism filing.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to approve a negotiated settlement with Atmos Energy Corporation, d/b/a Atmos
Energy Corporation,Mid-Tex Division(Atmos or Company), regarding Atmos'2022 filing under the Rate Review Mechanism(RRM). The
settlement was negotiated and is recommended by the Executive Committee of the Atmos Cities Steering Committee(ACSC),a coalition of 181
cities including Fort Worth (ACSC Members),which works cooperatively to provide members with more effective and efficient representation on
natural gas-related issues.
The RRM Tariff was most recently re-adopted in 2021 (M&C 21-0716)and serves as an alternative rate adjustment mechanism to the default
process outlined in state law. Like the state-law adjustment mechanism,the RRM allows Atmos to adjust rates to recover capital improvement
costs, but unlike state law,the RRM takes into account Atmos'overall financial situation,including operating costs and revenues and allows cities,
as regulatory entities,to review filings and identify expenses or investments considered to be unreasonable or unnecessary that should be reduced
or disallowed.
Since it was originally adopted,the RRM process has generally resulted in rate increases that are less than Atmos would have been entitled to
implement under the default state-law adjustment mechanism.
On or about April 1,2022,Atmos filed a rate request under the RRM Tariff. Given Atmos'claim that its cost-of-service in a test year ending
December 31,2021 entitled it to$141.3 million in additional system-wide revenues,the ACSC's RRM Tariff reduces Atmos request to$115
million of which$83.26 million would be applicable to ACSC Members.
The City of Fort Worth worked with and through ACSC to analyze the schedules and evidence offered by Atmos to support its request to increase
rates. City staff concur with the ACSC Executive Committee in their recommendation that the City take action to approve the negotiated
settlement's rates and charges before September 30,2022; new rates become effective October 1,2022.
The attached Ordinance reflects the terms of a negotiated settlement between ACSC and Atmos to resolve issues raised by ACSC during the
review and evaluation of Atmos'filing. Under the Ordinance,Atmos will generate$115 million in additional revenues from ACSC Cities.Given
Atmos Mid-Tex claim that its historic cost of service should entitle it to recover$141.3 million in additional system-wide revenues,the RRM
settlement at$115 million reflects substantial savings to ACSC Cities.ACSC consultants have agreed that the settlement at$115 million is fair
and reasonable.
The average monthly residential consumption in Fort Worth is 40.1 CCF,which is slightly lower than the 43.8 CCF average for all residential
customers in the incorporated areas of Atmos Mid Tex.This corresponds to an average monthly residential bill of$68.98 in Fort Worth,which is
5.8%lower than the average bill of$73.23 for all residential customers in the incorporated areas of Atmos Mid Tex.Conversely,the average
monthly commercial consumption in Fort Worth is 444.7 CCF,which is higher than the 345.7 CCF average for all commercial customers in the
incorporated areas of Atmos Mid Tex.This corresponds to an average monthly commercial bill of$429.23 in Fort Worth,which is 23.1%higher
than the average bill of$348.70 for all commercial customers in the incorporated areas of Atmos Mid Tex.
On approval of the attached Ordinance,the rates shown in Exhibit A of the Ordinance will be effective for bills rendered on or after October 1,
2022. Key elements of the rate changes are as follows:
Tariff Rate-Customer Class Current Proposed
R-Residential
Customer Charge $20.85 $21.55
Consumption Charge $0.27979/CCF $0.36223/CCF
C-Commercial
Customer Charge $56.50 $63.50
Consumption Charge $0.12263/CCF $0.14137/CCF
Tariff Rate-Customer Class Current Proposed
I-Industrial&T-Transportation
Customer Charge $1,054.75 $1,204.50
Consumption Charge Tier 1 $0.4330/MMBtu $0.4939/MMBtu
Consumption Charge Tier 2 $0.3171/MMBtu $0.3617/MMBtu
Consumption Charge Tier 3 $0.0680/MMBtu $0.0776/MMBtu
The ACSC staff report includes the Company's Average Bill Comparison base rates on the average monthly bills for Atmos Mid-Tex Division
customers by Customer Class; Base Rates Test Year Ending December 31,2021.This table is the average across all of the ACSC.As stated
abover, Fort Worth residential consumption is lower than the average while its commercial consumption is higher:
Tariff Rate-Customer Average Current Proposed Cost- %-
Class Consumption Change Change
R-Residential 43.8-CCF $68.62 $73.22 $4.60 6.71%
C-Commercial 345.7-CCF $334.29 $348.63 $14.34 4.29%
1-Industrial 4,278-MMBtu $21,136.06 $21,524.44 $388.38 1.84%
T-Transportation 4,278-MMBtul $5,247.381 $5,635.76 $388.38 7.40%
This M&C does not request approval of a contract with a business entity.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Juanita Rigsby 8518