PSC approves slight tariff increase for Atmos Energy customers

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The Mississippi Civil Service Commission approved a small tariff for customers of natural gas company Atmos Energy at its monthly meeting on Thursday.

Atmos residential customers who purchase five thousand cubic feet per month (Mcf) will see a monthly rate increase of 74 cents, as a rate cut for part of Atmos’ revenue requirement reduces what could have been an increase of $ 2.17 per month.

Atmos has also seen its infrastructure repair budget increased as the company says in its deposit that Yazoo’s clay soils are damaging its steel pipes throughout the metro Jackson area. Yazoo clay is infamous for its expansion when wet and for its compaction when dry.

The Commissioners unanimously approved a agreement between Atmos and separate utility staff. Atmos will experience a drop in revenue of $ 730,000 after staff adjusted their O&M costs down from $ 1.5 million to $ 45 million by removing incentive pay for $ 1.2 million. dollars and the remainder from memberships, business meals and other entertainment expenses.

The impact on the five McF average will be a decrease of $ 1.43.

Staff also realized savings through amortization of corporate debt and interest paid on long-term corporate debts. These savings are significant since taxpayers would have to pay them at higher rates if approved by the commission.

Each utility must submit to the commission the amount of revenue it intends to collect from customers each year and Atmos needed a smaller total because it benefited from the gains from the 2017 tax cut. adopted by Congress and enacted by then President Donald Trump.

After a vote in committee, Mississippi Power will be able to initiate the process of possible billing to customers for repair costs for damage caused by Hurricanes Zeta (October 2020) and Ida (September 2021) and several other severe weather events. Turning that expense into what’s called a regulatory asset allows the company to replenish its $ 39 million retail property damage reserve. This is the standard amount carried each year by the company that it said was used up as of June 30.

Mississippi Power may file with the commission a request to pass on these repair costs to its subscribers. If the commission approves it, the company could increase its rates to reduce costs.

The CPS also vote to approve a rate cut of 5 cents per month for natural gas company CenterPoint Energy relative to its energy efficiency plan.

Entergy will also be able to provide extensive electrical service to the US Army Corps of Engineers at its engineering research and development center via modular generators. Eight 400 kilowatt natural gas powered AC generators will make up the system for a total of 3.2 megawatts and will provide resilient back-up power to ERDC’s new secure IT facility.

The Corps will pay Entergy $ 29,000 per month for the service.

Entergy has also seen its tariff billed to small cogeneration plants that feed back into the company’s 100 kilowatt network changed. There are two options for these Entergy customers, with a flat rate of $ 2.983 per kilowatt hour and peak (3.182 kWh) and off peak (2.719 kWh


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