Office of the Attorney General and Reporter
Robert E. Cooper, Jr.

Utility Filings of Interest

Atmos Energy Corporation, Petition for an Adjustment to Its Rates, #12-00064

Atmos Energy Corporation ("Atmos") is a public utility regulated by the Tennessee Regulatory Authority ("TRA") and distributes natural gas to approximately 130,400 consumers located in Tennessee (and portions of Georgia). On June 22, 2012, Atmos filed with the TRA a Petition for an Adjustment to Its Rates. Atmos is requesting a rate increase of $10.8 million, an amount which may not be just and reasonable and requires further investigation.

Atmos' current rates were established in TRA Docket 08-00197 and put into effect in April, 2009. We do not know when this matter will be heard by the TRA. However, it is expected to be heard within a 6 month time frame from the filing of the case. Consumers interested in the case are encouraged to attend during the public comment portion of the case. The public hearing information will be posted on the TRA website...Atmos filings.

Lynwood/Berry's Chapel, Petition to Change and Increase the Rates and Charges Paid by Consumers for Wastewater Service, #11-000198

On November 15, 2011, Lynwood filed in the Tennessee Regulatory Authority ("TRA") a Petition to change and increase the rates and charges paid by consumers for wastewater service. The petition seeks an increase in rates by $398,853.00. This represents a rate increase of 76% for the households served by Lynwood. The Consumer Advocate and Protection Division intervened in the case on behalf of ratepayers and participated at the hearing. The Authority approved an annual revenue increase of $180,840 for Berry's Chapel. This amount is based on a Rate Base of $1,135,068, revenues at current rates of $596,258, total operating expenses of $681,668, a fair rate of return of 7.5% and a revenue conversion factor of 1.0604...Lynwood/Berry's Chapel filings.

Navitas TN NG, #12-00068

On July 2, 2012, Navitas filed a petition seeking to adjust its rates by first maintaining the current flat monthly customer charge of $6.00 on all customers. In addition, Navitas proposes to increase the surcharge on the first nine CCF from $0.25 to $1.00 per unit. Navitas also proposes to increase the flow charge from $0.40 per CCF residential and $0.30 per CCF industrial to $0.585/CCF and $0.485/CCF respectively.

On April 20, 2011, Navitas filed a petition seeking emergency relief in the form of implementing a flat customer charge to consumers and an increase in the volumetric charge to $1.00 surcharge for each of the first 9 CCF without a formal rate case proceeding. As part of the settlement of the petition for emergency relief, Navitas agreed to file a rate case by July, 2012.

Navitas claims a rate deficiency from the 2011 test year of approximately $390,000. This amount would require an approximate 80 percent increase in total revenue. Navitas claims that in the context of the two decades between the last rate case and this Petition, the $390,000 represents an annualized increase over the period of 3.27 percent. In order to avoid rate shock, Navitas proposes to divide the rate increases into four increments annually beginning in October.

The Consumer Advocate intervened in this case on July 6, 2012. We do not know when this matter will be heard by the TRA. However, it is expected to be heard within a 6 month time frame from the filing of the case. Consumers interested in the case are encouraged to attend during the public comment portion of the case. The public hearing information will be posted on the TRA website...Navitas filings.

Tennessee American Water Company, Petition for a General Rate Increase, Implementation of Distribution System Infrastructure Charge and the Establishment of Tracking Mechanisms for Purchased Power, Pensions and Chemical Expenses, #12-00049

On June 1, 2012, Tennessee American Water Company ("TAWC") filed with the Tennessee Regulatory Authority ("TRA") a Petition for a General Rate Increase, Implementation of Distribution System Infrastructure Charge and the Establishment of Tracking Mechanisms for Purchased Power, Pensions and Chemical Expenses ("Petition"). The Petition requests an increase in rates of nearly $10.6 million annually. This represents a nearly 25% increase in rates for the businesses and households of Chattanooga and the surrounding areas served by TAWC.

TAWC provides residential, commercial, industrial and municipal water service to 75,840 homes and businesses located in Chattanooga, Tennessee, and the surrounding area, including customers within the State of Georgia whose rates are regulated by the TRA rather than Georgia's Public Service Commission. TAWC's last rate case was filed on September 17, 2010, and resulted in a contested case heard before the TRA in April 2011. In that case, TRA Docket 10-00189, TAWC requested a rate increase of $9,984,463. The resulting Order from that matter increased base rates by only $5.5 million annually, an overall rate of return of 10%. In this case, TAWC proposes to increase customer rates by another $10,586,344 annually representing nearly a 25% rate increase for the businesses and households of Chattanooga and the surrounding areas.

The Consumer Advocate and Protection Division intervened in this case on June 16, 2012. The hearing is expected to be the week of October 15, 2012. Consumers interested in the case are encouraged to attend during the public comment portion of the case. The public hearing information will be posted on the TRA website...TAWC filings.