HomeMy WebLinkAbout26-28759 - City Council - OrdinanceORDINANCE 26-28759
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, APPROVING A NEGOTIATED
SETTLEMENT BETWEEN THE ATMOS CITIES STEERING
COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2026 RATE REVIEW
MECHANISM FILING; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE
ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED
SETTLEMENT; FINDING THE RATES TO BE SET BY THE
ATTACHED SETTLEMENT TARIFFS TO BE JUST AND
REASONABLE AND IN THE PUBLIC INTEREST; APPROVING
AN ATTACHMENT ESTABLISHING A BENCHMARK FOR
PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING
THE COMPANY TO REIMBURSE ACSC'S REASONABLE
RATEMAKING EXPENSES; DETERMINING THAT THIS
ORDINANCE WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE
DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO
THE COMPANY AND THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of Fort Worth, Texas ("City") is a gas utility customer of Atmos
Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company"), and a regulatory authority
with an interest in the rates, charges, and services of Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee (ACSC"), a
coalition of similarly -situated cities served by Atmos Mid -Tex ("ACSC Cities") that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates charged in
the Atmos Mid -Tex service area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review
Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC Cities as a
substitute to the Gas Reliability Infrastructure Program (`'GRIP") process instituted by the
Legislature, and that will establish rates for the ACSC Cities based on the system -wide cost of
serving the Atmos Mid -Tex Division; and
WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in
2018; and
WHEREAS, on about April 1, 2026 Atmos Mid -Tex filed its 2026 RRM rate request with
ACSC Cities based on a test year ending December 31, 2025; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2025 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues
identified in the Company's RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants,
recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $260.5
million on a system -wide basis with an Effective Date of October 1, 2026; and
WHEREAS, ACSC agrees that Atmos plant -in-service is reasonable; and
WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed
from future reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent
with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Attachment 2); and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications.
2557/40/9262988 2
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION 1. That the findings set forth in this Ordinance are hereby in all things approved.
SECTION 2. That, without prejudice to future litigation of any issue identified by ACSC,
the City Council finds that the settled amount of an increase in revenues of $260.5 million on a
system -wide basis represents a comprehensive settlement of gas utility rate issues affecting the
rates, operations, and services offered by Atmos Mid -Tex within the municipal limits arising from
Atmos Mid-Tex's 2026 RRM filing, is in the public interest, and is consistent with the City's
authority under Section 103.001 of the Texas Utilities Code.
SECTION 3. That despite finding Atmos Mid-Tex's plant -in-service to be reasonable,
ACSC is not foreclosed in future cases from evaluating the reasonableness of costs associated with
incidents involving leaks of natural gas.
SECTION 4. That the existing rates for natural gas service provided by Atmos Mid -Tex
are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are
just and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional
$260.5 million on a system -wide basis, over the amount allowed under currently approved rates.
Such tariffs are hereby adopted.
SECTION 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex's next RRM filing shall be as set forth on Attachment 2, attached hereto and
incorporated herein.
SECTION 6. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses
of ACSC in processing the Company's 2026 RRM filing.
2557/40/9262988 3
SECTION 7. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
SECTION 8. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
SECTION 9. That if any one or more sections or clauses of this Ordinance is adjudged to
be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining
provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
SECTION 10. That consistent with the City Ordinance that established the RRM process,
this Ordinance shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after October 1, 2026.
SECTION 11. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of
Chris Felan, Vice President of Rates and Regulatory Affairs Mid -Tex Division, Atmos Energy
Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato,
General Counsel to ACSC, at Lloyd GosselinkRochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701
APPROVED AS TO FORM AND LEGALITY:
By: OyL
Christopher Austria,
Sr. Assistant City Attorney
ADOPTED: September 15, 2026
EFFECTIVE: September 15, 2026
Jannette S. Goodall,
City Secretary
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Attachment I
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R - RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge I Amount
Customer Charge per Bill $ 24.35 per month
Rider CEE Surcharge $ 0.05 per month'
Total Customer Charge $ 24.40 per month
Commodity Charge — All Ccf $ 1.03839 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
'Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C - COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge I Amount
Customer Charge per Bill $ 115.50 per month
Rider CEE Surcharge $ 0.00 per month'
Total Customer Charge $ 115.50 per month
Commodity Charge — All Ccf $ 0.27784 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-iiilanttrotection@atmosenerv.com.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I - INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 200 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Customer Charge per Meter
First 0 MMBtu to 1,500 MMBtu
Next 3,500 MM Btu
All MMBtu over 5,000 MMBtu
Amount
$ 2,304.50 per month
$ 0.9582 per MMBtu
$ 0.7018 per MMBtu
$ 0.1505 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s)
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Plaits Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I - INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-blantbrotection@atmoseneray.com.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T - TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
This tariff is not available to customers with a maximum daily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10% or less. Load factor is calculated as follows: annual usage / (maximum
daily connected demand X 365). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T.
Type of Service
Company's receipt and delivery of all gas quantities under the applicable Transportation Agreement will be
on a wholly interruptible basis subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer, then Customer may elect, at the reasonable discretion
of Company, to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities, plant personnel, or the
public when such protection cannot be achieved through the use of an alternate fuel. Where service of the
type desired by Customer is not already available at the Point of Delivery, additional charges and special
contract arrangements between Company and Customer may be required prior to service being
furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge
Customer Charge per Meter
First 0 MMBtu to 1,500 MMBtu
Next 3,500 MM Btu
All MMBtu over 5,000 MMBtu
Amount
$ 2,304.50 per month
$ 0.9582 per MMBtu
$ 0.7018 per MMBtu
$ 0.1505 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T - TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Overpull Fee
Upon notification by Company of an event of interruption of Customer's deliveries, Customer will, for each
MMBtu delivered in excess of the stated level of interruption, pay Company 200% of the midpoint price for
the Katy point listed in Plaits Gas Daily published for the applicable Gas Day in the table entitled "Daily
Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR - SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as authorized
by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute,
ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract,
or agreement.
FASB ASC 740-10 (Fin48) Refund
Applicable to Customers taking service under Rate Schedules R — Residential, C — Commercial, I —
Industrial and T — Transportation.
To ensure that gas utility customers receive the benefit associated with the changes in the Company's
Uncertain Tax Positions ("UTPs") arising from recognition of Texas Margin Tax returns.
The decrease shall be calculated as follows:
Beginning with implementation of rates from the negotiated RRM Tariff, and annually thereafter, the
portion of UTP liabilities identified in Schedule FIN48-1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUD No. 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year's calculation will
include a true -up (+ or - ) due to account for over/under collections. Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is required to give effect to the amount to be refunded to
customers. However, any amount refunded to customers shall be fully subject to review for
reasonableness and accuracy in the gas utility's next statement of intent proceeding with the Railroad
Commission of Texas, and if applicable, the gas utility shall be required to reconcile any discrepancies.
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R — Residential, C — Commercial, I — Industrial and T — Transportation customer's
monthly bill in each month for a 12 -month period. The refund amount by month by Rate Schedule is
shown in the table below:
Rate Schedules
Rate
Rate R
— Residential Sales
$ (0.14)
Rate C
— Commercial Sales
$ (0.49)
Rate I —
Industrial Sales
$ (10.47)
Rate T
— Transportation
$ (10.47)
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR - SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Unprotected Excess Deferred Income Tax Amortization
The allocated RRM Cities balance of the Unprotected portion of the Excess Deferred Income Taxes
("EDIT") remaining after implementation of rates at October 1, 2026 shall be applied to each Rate
Schedules R — Residential, C — Commercial, I — Industrial and T — Transportation customer's monthly bill
for a one -month period. The refund amount by Rate Schedule is shown in the table below:
Rate Schedules
Rate
Rate R
— Residential Sales
$ (4.45)
Rate C
— Commercial Sales
$ (14.80)
Rate I —
Industrial Sales
$ (319.02)
Rate T
— Transportation
$ (319.02)
Maximum Allowable Operating Pressure ("MAOP") Hydrostatic Testing Cost Recovery
The allocated RRM Cities balance of the MAOP Hydrostatic Testing Cost as of December 31, 2025 is to
be recovered through a monthly rate. This monthly rate shall be applied to each Rate Schedules R —
Residential, C — Commercial, I — Industrial and T — Transportation customer's monthly bill for
approximately twelve (12) months or until all approved costs are recovered from the applicable customer
classes. The monthly recovery rate by Rate Schedule is shown in the table below:
Rate Schedules
Rate
Rate R
— Residential Sales
$ 0.30
Rate C
— Commercial Sales
$ 0.98
Rate I —
Industrial Sales
$ 21.17
Rate T
— Transportation
$ 21.17
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Provisions for Adiustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adiustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one -hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA, = WNAF, x qij
Where qij is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Base Use/Heat Use Factors
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
9.78
0.1448
91.89
0.8018
Austin
9.07
0.1318
213.26
0.9418
Dallas
12.87
0.1937
192.49
1.1269
Waco
9.39
0.1261
159.17
0.8068
Wichita
10.61
0.1364
133.65
0.6965
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at
www.atmosenergy.com/MTXtariffs, in Excel format, a Weather Normalization Adjustment (WNA) Report
to show how the company calculated its WNAs factor during the preceding winter season. Additionally,
on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA
Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that
Division.
Attachment 2
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2025
Shared Services
Mid -Tex Direct
Post-
Post-
Supplemental
Line
Pension
Employment
Pension
Employment
Executive Benefit
Adjustment
No.
Description
Account Plan
Benefit Plan
Account Plan
Benefit Plan
Plan
Total
(a)
(b)
(c)
(d)
(e)
(f)
(g)
1
Proposed Benefits Benchmark -
Fiscal Year 2026 Willis Towers Watson Report as adjusted (1) (2) (3)
$
200,382
$ (490,197)
$ 951,536
$ (3,288,240)
$ 72,926
2
Allocation Factor
46.66%
46.66%
87.00%
87.00%
100.00%
3
Proposed Benefits Benchmark Costs Allocated to Mid -Tex (Ln 1 x Ln 2)
$
93,490
$ (228,707)
$ 827,882
$ (2,860,928)
$ 72,926
4
O&M and Capital Allocation Factor
100.00%
100.00%
100.00%
100.00%
100.00%
5
Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4)
$
93,490
$ (228,707)
$ 827,882
$ (2,860,928)
$ 72,926
$ (2,095,337)
6
7
O&M Expense Factor (WP_F-2.3, Ln 2)
80.27%
80.27%
36.19%
36.19%
8.73%
8
9
Summary of Costs to Approve (1):
10
Total Pension Account Plan
$
75,047
$ 299,646
$ 374,693
11
Total Post -Employment Benefit Plan
$ (183,588)
$ (1,035,492)
(1,219,080)
12
Total Supplemental Executive Benefit Plan
$ 6,367
6,367
13
Total (Ln 10 + Ln 11 + Ln 12)
$
75,047
$ (183,588)
$ 299,646
$ (1,035,492)
$ 6,367
$ (838,020)
FORT WORTH,,
MAYOR AND COUNCIL COMMUNICATION
7.1.23 ADOPTION OF ATMOS 2026
DATE: 09/15/26 M&C FILE NUMBER: M&C 26-0857
DEPARTMENT: PROPERTY MANAGEMENT
SUBJECT
(ALL) Adopt Ordinance Approving Negotiated Settlement and Establishing Maximum
Permitted Rates and Charges that Atmos Energy Corporation d/b/a Atmos Energy
Corporation, Mid -Tex Division, May Assess Customers in the City of Fort Worth Effective
October 1, 2026
RECOMMENDATION
It is recommended that the City Council adopt the attached Ordinance establishing
maximum permitted rates and charges that Atmos Energy Corporation, d/b/a Atmos Energy
Corporation, Mid -Tex Division, may assess customers in the City of Fort Worth, effective
October 1, 2026, pursuant to a negotiated settlement of Atmos' proposed rate increase under
its 2026 Rate Review Mechanism filing.
DISCUSSION
The purpose of this Mayor and Council Communication (M&C) is to approve a negotiated
settlement with Atmos Energy Corporation, d/b/a Atmos Energy Corporation, Mid -Tex Division
(Atmos or Company), regarding Atmos' 2026 filing under the Rate Review Mechanism (RRM).
The settlement was negotiated and is recommended by the Executive Committee of the
Atmos Cities Steering Committee (ACSC), a coalition of 181 cities including Fort Worth (ACSC
Members), which work cooperatively to provide members with more effective and efficient
representation on natural gas -related issues.
The RRM Settlement serves as an alternative rate adjustment mechanism to the default
process outlined in state law. Like the state -law adjustment mechanism, the RRM allows
Atmos to adjust rates to recover capital improvement costs. Unlike state law, however, the
RRM considers Atmos' overall financial situation, including operating costs and revenues, and
allows cities, as regulatory entities, to review filings and disallow expenses or investments
determined to be unreasonable or unnecessary.
Since 2007, there have been several modifications to the original RRM Tariff. The most recent
iteration of an RRM Tariff was reflected in an ordinance adopted by ACSC members in 2018
(Ordinance 23149-03-2018). The RRM process has generally resulted in lower rate increases
than Atmos would have been entitled to implement under default state law.
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FORT WORTH,,
On or about April 1, 2026, Atmos filed a rate request under the RRM Tariff claiming that its
cost -of -service for the test year ending December 31, 2025, entitled it to a system -wide
revenue increase of $291.1 million. Application of the specific standards set forth in ACSC's
RRM Tariff automatically reduced the Company's request by $17.5 million, to $273.6 million.
Following a thorough review and discovery process, ACSC's consultants concluded that the
actual system -wide revenue deficiency under the RRM regime was $253.4 million.
After multiple settlement meetings, ACSC and Atmos agreed to settle the case for $260.5
million in additional system -wide revenues, which includes the payment of ACSC's rate case
expenses. This final settled amount represents a total reduction of $30.6 million from Atmos'
original request, consisting of $17.5 million saved by applying strict tariff standards and an
additional $13.1 million saved through negotiated adjustments.
City staff concur with the ACSC Executive Committee's recommendation that the City Council
adopt the attached Ordinance approving the negotiated settlement rates and charges
before October 1, 2026. The new rates will become effective October 1, 2026.
Fort Worth vs. Atmos Mid -Tex Division RRM Tariff- Settlement Comparison:
The average monthly residential consumption in Fort Worth is 37.5 Centum Cubic Feet (CCF),
which is less than the 40.7 CCF average for Atmos residential customers. This corresponds to
an average monthly residential bill of $101.42 in Fort Worth, which is 5.96% lower than the
system -wide average bill of $107.85 for Atmos residential customers.
Conversely, the average monthly commercial consumption in Fort Worth is 489.9 CCF, which
is higher than the 372.6 CCF average for Atmos commercial customers. This corresponds to
an average monthly commercial bill of $615.67 in Fort Worth, which is 23.69% higher than the
system -wide average bill of $497.75 for Atmos commercial customers.
These figures reflect average total monthly bills, including base rates, cost of gas, and
applicable fees.
Fort Worth - Current vs. Settlement
Current
Fort Worth
Settlement
Percentage
Average
Settlement
Tariff Rate-
Average
Average
Increase
Unit
Monthly
Monthly
Customer
Consumption
Monthly Bill
with Gas
Bill with
Change
Class
with Gas Cost
Cost
37.5
489.9
CCF
CCF
Gas Cost
$89.00
$563.95
$101.42
$615.67
$12.42
$51.72
13.96%
9.17%
Residential
Commercial
Atmos Mid -Tex Division RRM Tariff
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FORT WORTH,,
On approval of the attached Ordinance, the rates shown in Exhibit A of the Ordinance will be
effective for bills rendered on or after October 1, 2026. Key elements of rate changes are as
follows:
Tariff Rate - Customer Class
Current
Settlement
R - Residential
Customer Charge
Consumption Charge/CCF
$23.65
$0.74748
$24.35
$1.03839
C - Commercial
Customer Charge
$94.00 $115.50
Consumption Charge/CCF $0.22261 $0.27784
1 - Industrial
Customer Charge
Consumption Charge Tier 1
/MMBtu
Consumption Charge Tier 2
/MMBtu
$1,848.75 $2,304.50
$0.7678
$0.5623
$0.9582
$ 0.7018
Consumption Charge Tier 3
$0.1206 $0.1505
/MMBtu
T - Transportation
Customer Charge $1,848.75 $2,304.50
Consumption Charge Tier 1
$0.7678 $0.9582
/MMBtu
Consumption Charge Tier 2
$0.5623 $0.7018
/MMBtu
Consumption Charge Tier 3
$0.1206 $0.1505
/MMBtu
The ACSC staff report includes the Company's Average Bill Comparison base rates on
average monthly bills for Atmos Mid -Tex Division customers, by Customer Class; Base Rates
Test Year Ending December 31, 2025. As stated above, Fort Worth residential consumption is
lower than the average while its commercial consumption is higher. The following table
represents the average bill impact across all of the ACSC.
Atmos Mid -Tex Bill Impact (ACSC):
Current
Settlement
ACSC Tariff
Percentage
Average
Average
Settlement
Rate -Customer
Average
Increase
Unit
Monthly
Monthly Bill
Monthly
Class Average
Consumption
with Gas
Bill with
with Gas
Change
Bill
Cost
Gas Cost
Cost
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FORT WORTH,,
Residential
40.7
372.6
1,263.0
4,935.0
CCF $94.48
CCF $452.93
MMBtu $7,772.42
MMBtu $10,026.07
$107.85
$497.75
$8,514.00
$11,326.02
$13.37
$44.82
$741.58
$1,299.95
14.15%
9.90%
9.54%
12.97%
Commercial
Industrial
Transportation
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION
The Director of Finance certifies that approval of this recommendation will have no material
effect on City funds.
SUBMITTED FOR CITY MANAGER'S OFFICE BY:
ORIGINATING BUSINESS UNIT HEAD:
ADDITIONAL INFORMATION CONTACT:
ATTACHMENTS
Valerie R. Washington, #6192
Marilyn Marvin, #7708
Juanita Rigsby, #8518
1. Attachment 1 C Y 25 MTX RRM - Tariffs [7.1.23.1 - 10 pages]
2. Attachment 2_ C Y 25 MTX RRM - Pension Benchmark [7.1.23.2 - 1 page]
3. Atmos Mid- Tex 2026 RRM Ordinance ( Legal Approval) [7.1.23.3 - 5 pages]
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