Title
Consider approval of an Ordinance to implement the Rate Review Mechanism (RRM) process for Atmos Energy Corp., Mid-Tex Division, as a substitute for the legislatively-constructed Gas Reliability Infrastructure Program (GRIP) ratemaking mechanism; and authorizing the Mayor to sign.
Summary
There is no rate increase associated with this ordinance. This item is to approve the continued use of the Rate Review Mechanism (RRM) process in place of the less favorable annual ratemaking method, the Gas Reliability Infrastructure Program (GRIP). The City of Coppell used the RRM process for 2008-2011. If the cities within the Atmos system do not approve the RRM process, Atmos will file their annual rate increase request using the less favorable GRIP statute. The filing under the GRIP statute will be more costly for our ratepayers than through the RRM process. The coalition of approximately 155 Atmos cities is recommending approval of the Ordinance and the RRM ratemaking process.
Fiscal Impact:
There is no direct fiscal impact from this agenda item.
Staff Recommendation:
Staff recommends approval.
Goal Icon:
Sustainable City Government