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  E.2.g.       
Meeting Date: 09/18/2018  
Submitted For: Tarron Richardson Contact: Alicia Thomas, Assistant City Secretary

COUNCIL ACTION
Motion by Councilmember Moore with a second by Councilmember North to approve as presented. Motion passes 6-0.
AGENDA ITEM:
Consider a resolution approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., mid-tex division regarding the company's 2018 rate review mechanism filings.
BACKGROUND:
On an annual basis, Atmos Energy Corporation has the ability to file a new Rate Review Mechanism (RRM) with the Atmos Cities Steering Committee (ACSC).  As a result of their quest to increase rates and charges for gas utility customers, the ACSC's counsel and related consultants began negotiations with Atmos Energy Corporation. Ultimately, this led to an increase in base rates of $24.9M. However, only $17.8M of the $24.8M will be applicable to ACSC members.       
FINDINGS:
The ACSC negotiatied a fair and reasonable settlement with Atmos Energy Corporation to increase their revenues for gas utility services by $24.9M.  As previously mentioned, only $17.8M of the estimated $24.9M in projected revenues will be passed on to ACSC members.  In order for this agreed upon rate to become effective for customers, the City Council must adopt this resolution before October 1, 2018.         
FINANCIAL IMPACT:
Consumers of the services provided by Atmos Energy Corporation will realize an increase in their monthly statements, which will be solely determined by said company.  The City of DeSoto does not play a role in establishing rates and fees for said utility.      
RECOMMENDATION:
Staff recommends that City Council approves this resolution as negotiated by the Atmos Cities Steering Committee in regards to a 2018 Rate Review Mechanism filing by Atmos Energy Corporation.  
MANAGEMENT REVIEW

    

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