Summary
This Form 8-K filing by Atmos Energy Corporation (ATO) reports on a significant development in its Mid-Tex Division's rate case. On December 4, 2012, the Railroad Commission of Texas (RRC) issued a final order approving an increase in the Division's annual operating income by approximately $42.6 million. This increase is a result of an approved margin increase of about $29.6 million and a net decrease in depreciation rates of approximately $13.0 million. The RRC's order, effective for bills rendered on or after January 1, 2013, also establishes key financial parameters for the Division, which serves about 1.3 million residential customers. These include an authorized return on equity of 10.5%, a capital structure of 48.3% debt and 51.7% equity, and an authorized rate base of $1.513 billion. Notably, the monthly residential customer charge will increase substantially from $7.50 to $17.70.
Key Highlights
- 1Atmos Energy's Mid-Tex Division received a favorable final order from the Railroad Commission of Texas (RRC) on December 4, 2012.
- 2The RRC approved a net increase in the Division's annual operating income of approximately $42.6 million.
- 3This income boost is driven by an approved margin increase of about $29.6 million and a $13.0 million reduction in depreciation rates.
- 4The approved authorized return on equity for the Division is set at 10.5 percent.
- 5The authorized capital structure is balanced at 48.3 percent debt and 51.7 percent equity.
- 6The authorized rate base for the Division is established at $1.513 billion.
- 7A significant increase in the monthly residential customer charge is authorized, rising from $7.50 to $17.70, effective January 1, 2013.