On Jan. 15, 2016, Atmos filed its fitth Dallas Annual Rate Review Tariff (DARR) rate request with proposed effective date of June 1, 2016. Atmos requested an increase in base rates of $7.4m annually. That means the monthly bill for an average residential consumer would increase by $2.17. The Dallas City Council must decide by May 30, 2016.
Based on direction given by Budget, Finance and Audit Committee in January, staff removed Conservation and Energy Efficiency (CEE) program costs from base rates and requested Atmos to file CEE as separate surcharge. Surcharge would be $0.05 for residential customers and $0.10 for commercial customers monthly. Proposed surcharge in other Atmos cities is $0.02 and $0.08 respectively.
The options for council consideration are:
- Approve rates per original Atmos request
- Overall increase of $7.4m (8.38%)
- Average residential bill to increase by $2.17 per month
- Approve rates per negotiated settlement
- Overall increase of $5.3m (5.99%)
- Average residential bill to increase by $1.57 per month
- Reject CEE Tariff
- Approve rates per negotiated settlement and approve CEE tariff
- Overall increase of $5.3m (5.99%)
- Average residential bill to increase by $1.57 per month
- CEE tariff surcharged to residential customers ($0.05 per month residential and $0.10 per month commercial)
- Deny rate request
- Atmos will likely appeal denial to RCT and may immediately implement rates as originally requested, subject to refund
- Set rates at some other level
- Atmos may appeal new rates to RCT and may immediately implement rates as originally requested, subject to refund
If approved, the rates will become effective for gas sold on or after June 1, 2016. City Manager A.C. Gonzalez has recommended approval of Option 2 on May 11, 2016.