STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: May 24, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
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An ordinance denying rates as requested by Atmos Energy Corp. Mid-Tex Division provided pursuant to its January 13, 2023, Dallas Annual Rate Review filing and setting rates as recommended by the City Manager - Financing: No cost consideration to the City
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BACKGROUND
Atmos Energy Corp. Mid-Tex Division (Atmos) provides natural gas utility service in Dallas in accordance with City franchise Ordinance No. 27793 and Title 3, Subtitle A Texas Utilities Code, Gas Utility Regulatory Act (GURA). On June 22, 2011, the City of Dallas approved Atmos' tariff Dallas Annual Rate Review (DARR), which provides a mechanism by which Atmos shall file for an annual review of its rates.
Atmos filed its rate increase request under the DARR tariff by January 13, 2023 (January 15 deadline on Sunday). In its filing, Atmos requested an increase in annual revenue of $20.6 million from within the City of Dallas. Atmos requested that the new rates become effective June 1, 2023.
Pursuant to the DARR tariff the City has a review period of 135 days from the date of the filing to render a decision which would be May 28, 2023, however on May 13, 2020, in response to the COVID-19 pandemic the City amended the language to extend the evaluation period. The following language was added to the ordinance:
"The City of Dallas shall have 135 days to review and render a decision on the Company's filed schedules and work papers. However, should a declaration of emergency be issued affecting the City of Dallas by action of the United States federal government, the government of the State of Texas, the County of Dallas or the City of Dallas which is in effect during the 135-day evaluation period, the 135-day evaluation period sha...
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