Runaway Bay this week gained better control over the gas rates charged to its citizens.
At its meeting Tuesday, the city council approved a five-year rate review mechanism (RRM) agreement with Atmos Energy.
The proposed RRM will not increase rates but will simply “set the ground rules for future rate filings.”
From 2008 through 2011, the city participated in a three-year trial run of a Rate Review Mechanism (RRM) – a systematic process that specifies how rates will be set over a certain period of time. The system was devised by Atmos Energy Mid-Tex Division and its city coalitions to avoid costly rate cases, the expenses of which are borne by customers.
In addition to controlling rates, the RRM process suspends Gas Reliability Infrastructure Program (GRIP) filings and provides a transparent process to annually review the company’s expenses and investments.
New rates would be agreed on annually by Atmos and the cities it serves. This year’s filings will be discussed in July and go into effect in October. In subsequent years, the filings would occur by March 1, with new rates going into effect June 1.
In other news:
- Incumbents Dan Ticer, Jerry St. John and Berry White were sworn in for another term.
- The council approved the purchase of a tractor for the mowing department.
- Council members OK’d routine business items including the April meeting’s minutes, financials, accounts payable, journal entries and activity report.