The City of Plano, along with 181 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division (Atmos Mid-Tex) is a member of the Atmos Cities Steering Committee (ACSC).
In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by Atmos Mid-Tex pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). The settlement created a substitute rate review process referred to as Rate Review Mechanism (RRM), as a substitute for future filings under the GRIP statue.
Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration of the RRM Tariff that implemented new procedures and the criteria for the RRM process was reflected in an ordinance adopted by ACSC members in 2018.
Around April 1, 2024, Atmos Mid-Tex filed a rate request pursuant to the RRM Tariff adopted by ACSC members. Atmos Mid-Tex claimed that its cost of service in a test year ending December 31, 2023 entitled it to additional system-wide revenues of $196.8 million. In applying the standards set forth in ACSC's RRM Tariff, ACSC's consultants and Atmos Mid-Tex have agreed to settle Atmos Mid-Tex's request to $164.7 million, which is a reduction of $32.1 million to Atmos Mid-Tex's initial request.
The impact of the settlement on average residential usage is an increase of $5.52 a month. The increase for average commercial usage is an increase of $13.39 a month. While residents outside municipal limits must pay rates governed by GRIP, there are some cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. Additionally, the City of Dallas adopted a version of RRM which is referred to as DARR. When new rates become effective on October 1, 2024, ACSC residents will maintain an economic monthly advantage over GRIP and DARR rates. Comparison of RRM Cities including City of Plano to other Mid-Tex Rates (Residential) are as follows:
|
Average Bill |
Compared to RRM Cities |
RRM Cities including Plano |
$48.19 |
- |
DARR |
$54.30 |
$6.11 |
Atmos Mid-Tex not RRM Cities |
$49.59 |
$1.40 |
Environs |
$49.53 |
$1.34 |
The RRM process has proven to be more efficient and less costly than the GRIP process. The settlement at $164.7 million is fair and reasonable, and will be effective October 1, 2024. In order for Plano and the other ACSC member cities to receive the settlement rate, they should take action approving the Ordinance before September 30, 2024.