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Atmos Rate Review, #07-00105


Atmos Energy Corporation Rate Review, #07-00105

Atmos Energy Corporation is engaged in the business of transporting, distributing and selling natural gas in several Tennessee counties and is regulated by the Tennessee Regulatory Authority (TRA).

On May 4, 2007, Atmos filed for a rate increase at the TRA in the amount $11,055,188 annually. In this proceeding Atmos sought a rate increase of 24% for each class of customers: 1) residential and public authority; 2) commercial; and 3) industrial. After preparing the matter for hearing, the Consumer Advocate and the utility agreed to a settlement that reduced the company’s request to $3,990,000 annually. The TRA approved the settlement on November 6, 2007. With the adjustments made to the revenue request, the bills of the utility’s customers rose 8.9% rather than 24%.

In addition, the settlement calls for Atmos to drop a “Customer Utilization Program” or “decoupler.” Each year, the gas utility’s revenues per customer fall as a result of customer conservation efforts. Atmos requested that it be made whole by an annual adjustment mechanism decoupling the utility’s revenues from the volumes of gas sold to individual customers. The utility’s effort amounts to a “single issue” rate case that disregards other pertinent factors including adding new customers to the service.

Considering the concessions made by the utility, the Consumer Advocate’s involvement in this rate case filing will save the utility’s customers in excess of $7,065,188 annually.

Tennessee Regulatory Authority Filings

 

This list includes only significant filings and is not intended to be a complete record of the matter.