HomeMy WebLinkAboutOrdinance 21755-05-2015ORDINANCE NO.21755-05-2015
AN ORDINANCE APPROVING A NEGOTIATED SETTLEMENT
BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND
ATMOS ENERGY CORPORATION, D/B/A ATMOS ENERGY
CORPORATION, MID-TEX DIVISION, REGARDING THE
COMPANY'S 2014 AND 2015 RATE REVIEW MECHANISM
FILINGS; APPROVING A SETTLEMENT AGREEMENT WITH
ATTACHED RATE TARIFFS AND PROOF OF REVENUES;
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 SETTLEMENT
TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC
INTEREST; REQUIRING THE COMPANY TO REIMBURSE
STEERING COMMITTEE'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 STEERING COMMITTEE'S LEGAL
COUNSEL.
WHEREAS, the City of Fort Worth, Texas ("City") is a gas utility customer of Atmos
Energy Corporation, d/b/a Atmos Energy Corporation, Mid -Tex Division ("Atmos Mid -Tex" or
"Company"), and a regulatory authority with an interest in the rates and charges 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
Ordinance No. 21755-05-2015
Page 1 of 5
Legislature, and that establishes rates for the ACSC Cities based on the system -wide cost of
serving the Atmos Mid -Tex Division; and
WHEREAS, the initial RRM Tariff was in effect for four (4) years; and
WHEREAS, ACSC Cities and Atmos Mid -Tex entered into another settlement agreement
and revised the RRM Tariff; and
WHEREAS, ACSC Cities and Atmos Mid -Tex compromised and reached agreements on
the amount of the rate increase to be in effect for the RRM Tariff filing for 2013; and
WHEREAS, ACSC Cities and Atmos Mid -Tex were unable to reach an agreement on the
2014 RRM Tariff filing, resulting in the ACSC Cities' rejection of the 2014 RRM filing; and
WHEREAS, Atmos Mid -Tex appealed the ACSC Cities' actions rejecting its 2014 RRM,
filing to the Railroad Commission of Texas ("Commission"), pursuant to the provisions of the'
RRM Tariff; and
WHEREAS, Atmos Mid -Tex and ACSC litigated the appeal of the 2014 RRM filing at
the Commission; and
WHEREAS, on February 27, 2015, Atmos Mid -Tex filed its 2015 RRM Tariff filing,
requesting to increase natural gas base rates system -wide by $28.762 million; and
WHEREAS, ACSC coordinated its review of Atmos Mid -Tex 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, Atmos Mid -Tex has agreed to withdraw its appeal of ACSC's rejection of
its 2014 RRM Tariff rate increase; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants,
recommend that ACSC Cities approve the attached Settlement Agreement (Attachment A to this
Ordinance No. 21755-05-2015
Page 2 of 5
Ordinance) as well as the tariffs attached thereto, resolving both the 2014 and the 2015 RRM
Tariff filings, which together will increase the Company's revenues by $65.7 million over the
amount allowed under City -approved rates set in 2013; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
negotiated Settlement Agreement and are just, reasonable, and in the public interest; and
WHEREAS, the RRM Tariff should be renewed for a period of time commencing in
2016 and continuing until the RRM Tariff is suspended by ordinance of the City; and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
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 the City Council finds that the Settlement Agreement (Attachment A to this
Ordinance) 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 2014 and 2015 RRM filings, 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 the existing rates for natural gas service provided by Atmos Mid -Tex under its 2014
RRM filing are unreasonable. The new tariffs attached hereto and incorporated herein as
Attachment C, are just and reasonable, and are designed to allow Atmos Mid -Tex to recover
Ordinance No. 21755-05-2015
Page 3 of 5
annually an additional $65.7 million in revenue over the amount allowed under rates approved
by the City in 2013, or $21 million over currently -billed rates, as shown in the Proof of Revenues
attached hereto and incorporated herein as Attachment B; such tariffs are hereby adopted.
Section 4.
That the ratemaking treatment for pensions and other post -employment benefits in Atmos
Mid-Tex's next RRM filing shall be as set forth on Attachment D, attached hereto and
incorporated herein.
Section 5.
That in an effort to streamline the regulatory review process, the Atmos Mid -Tex RRM
Tariff is renewed for a period commencing with the Company's March 1, 2016 RRM filing for
calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as the City
adopts an ordinance suspending operation of the RRM Tariff.
Section 6.
That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in
processing the Company's RRM application.
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.
Ordinance No. 21755-05-2015
Page 4 of 5
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 June 1, 2015.
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 Geoffrey Gay, General Counsel to ACSC,
at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin,
Texas 78701.
PASSED AND APPROVED this 19th day of May, 2015.
ADOPTED: Mav 19, 2015
A11PROVEDAS TO F
By:
Denis. McElr y,
M&C: G-18486
Y�AND LEGALITY: (/I � `fir
sistant CityAttorney /Ronald P. Gonzales
Assistant City Secretary
Ordinance No. 21755-05-2015
Page 5 of 5
Attachment A
SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORP.. MID-TEX
DIVISION AND ATMOS CITIES STEERING COMMITTEE
WHEREAS, this agreement ("Settlement Agreement") is entered into by Atmos
Energy Corp's Mid -Tex Division and Atmos Cities Steering Committee ("ACSC") whose
members include the Cities of Abilene, Addison, Allen, Alvarado, Angus, Anna, Argyle,
Arlington, Aubrey, Bedford, Bellmead, Benbrook, Beverly Hills, Blossom, Blue Ridge, Bowie,
Boyd, Bridgeport, Brownwood, Buffalo, Burkburnett, Burleson, Caddo Mills, Canton,
Carrollton, Cedar Hill, Celeste, Celina, Centerville, Cisco, Clarksville, Cleburne, Clyde, College
Station, Colleyville, Colorado City, Comanche, Commerce, Coolidge, Coppell, Copperas Cove,
Corinth, Corral City, Crandall, Crowley, Dalworthington Gardens, Denison, Desoto,
Duncanville, Eastland, Edgecliff Village, Emory, Ennis, Euless, Everman, Fairview, Farmers
Branch, Farmersville, Fate, Flower Mound, Forest Hill, Fort Worth, Frisco, Frost, Gainesville,
Garland, Garrett, Grand Prairie, Grapevine, Gunter, Haltom City, Harker Heights, Haskell,
Haslet, Hewitt, Highland Park, Highland Village, Honey Grove, Hurst, Hutto, Iowa Park, Irving,
Justin, Kaufman, Keene, Keller, Kemp, Kennedale, Kerens, Kerrville, Killeen, Krum, Lake
Worth, Lakeside, Lancaster, Lewisville, Lincoln Park, Little Elm, Lorena, Madisonville,
Malakoff, Mansfield, McKinney, Melissa, Mesquite, Midlothian, Murphy, Newark, Nocona,
North Richland Hills, Northlake, Oakleaf, Ovilla, Palestine, Pantego, Paris, Parker, Pecan Hill,
Petrolia, Plano, Ponder, Pottsboro, Prosper, Quitman, Red Oak, Reno (Parker County),
Richardson, Richland, Richland Hills, Roanoke, Robinson, Rockwall, Roscoe, Rowlett, Royse
City, Sachse, Saginaw, Sansom Park, Seagoville, Sherman, Snyder, Southlake, Springtown,
Stamford, Stephenville, Sulphur Springs, Sweetwater, Temple, Terrell, The Colony, Trophy
Club, Tyler, University Park, Venus, Vernon, Waco, Watauga, Waxahachie, Westlake, White
Settlement, Whitesboro, Wichita Falls, Woodway, and Wylie.
WHEREAS, on February 28, 2014, Atmos filed with the ACSC Cities an application,
hereinafter referred to as the 2014 RRM filing, to adjust rates pursuant to Rider RRM - Rate
Review Mechanism, which were subsequently consolidated into GUD No. 10359 at the Railroad
Commission of Texas; and
WHEREAS, on February 27, 2015, Atmos filed with the ACSC Cities an application,
hereinafter referred to as the 2015 RRM filing, to adjust rates pursuant to Rider RRM - Rate
Review Mechanism; and
WHEREAS, the Settlement Agreement resolves all issues between Atmos and ACSC
("the Signatories") regarding the 2014 RRM filing, which is currently pending before the
Commission, and the 2015 RRM filing, which is currently pending before the ACSC Cities, in a
manner that the Signatories believe is consistent with the public interest, and the Signatories
represent diverse interests; and
WHEREAS, the Signatories believe that the resolution of the issues raised in the 2014
RRM filing and the 2015 RRM filing can best be accomplished by each ACSC City approving
this Settlement Agreement and the rates, terms and conditions reflected in the tariffs attached to
this Settlement Agreement as Exhibit A;
NOW, THEREFORE, in consideration of the mutual agreements and covenants
established herein, the Signatories, through their undersigned representatives, agree to the
1
Attachment A
following Settlement Terms as a means of fully resolving all issues between Atmos and the
ACSC Cities involving the 2014 RRM filing and 2015 RRM filing:
Settlement Terms
1. Upon the execution of this Settlement Agreement, the ACSC Cities will approve an
ordinance or resolution to approve the Settlement Agreement and implement the rates,
terms and conditions reflected in the tariffs attached to the Settlement Agreement as
Exhibit A. (Attachment A to the Ordinance ratifying the Agreement). Said tariffs
should allow Atmos to recover annually an additional $65.7 million in revenue over
the amount allowed under currently approved rates by implementation of rates shown
in the proof of revenues attached as Exhibit B. (Attachment B to the Ordinance
ratifying this Agreement). The uniform implementation of gas rates, terms and
conditions established by the Settlement Agreement shall be effective for bills
rendered on or after June 1, 2015. Consistent with the City's authority under Section
103.001 of the Texas Utilities Code, the Settlement Agreement represents a
comprehensive settlement of gas utility rate issues affecting the rates, operations and
services offered by Atmos within the municipal limits of the ACSC Cities arising from
Atmos' 2014 RRM filing and 2015 RRM filing. No refunds of charges billed to
customers by Atmos under the RRM in past periods shall be owed or owing.
2. In an effort to streamline the regulatory review process, Atmos and the ACSC Cities
have agreed to renew the Rate Review Mechanism ("Rider RRM") for a period
commencing with the Company's March 1, 2016 filing under this mechanism for the
calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as
either the ACSC Cities issue an ordinance stating a desire to discontinue the operation
of the tariff or Atmos files a Statement of Intent. Atmos and the ACSC Cities further
agree that the RRM tariff shall remain in effect until such time as new, final rates are
established for Atmos. Upon approval of this Settlement Agreement by the ACSC
Cities, Atmos shall file an updated RRM Tariff with each city reflecting the provisions
of this agreement.
3. Atmos and the ACSC Cities agree that rate base as of December 31, 2014 in the
amount of $1,955,948,256 is just and reasonable and shall be recovered in rates.
4. Atmos and the ACSC Cities agree that a pension and other postemployment benefits
balance as of December 31, 2014 in the amount of $18,284,949 is just and reasonable
and shall be used as the beginning balance for purposes of determining pension and
other postemployment benefits to be recovered in the next RRM filing (Attachment D
to the Ordinance ratifying the Agreement).
With regard to the treatment of Atmos' Rule 8.209 regulatory asset under the RRM,
Atmos and the ACSC Cities agree to the following with respect to any pending and
future RRM filings:
a. the capital investment in the Rule 8.209 regulatory asset in the 2014 RRM filing
and 2015 RRM filing is reasonable and consistent with the requirements of Rule
8.209;
0a
Attachment A
b. the classification of projects included in the Rule 8.209 regulatory asset in the
2014 RRM filing and 2015 RRM filing is reasonable and consistent with the
requirements of Rule 8.209 and shall serve as a basis for classification of projects
in future RRM filings;
c. the treatment of blanket replacement projects, system upgrades, relocations, and
transmission line replacements in the Rule 8.209 regulatory asset in the 2014 RRM
filing and 2015 RRM filing is reasonable and consistent with the requirements of
Rule 8.209 and shall be included in future RRM filings.
d. the incurred expenses included in the Rule 8.209 regulatory asset in the 2014
RRM and the 2015 RRM are reasonable and consistent with the requirements of
Rule 8.209 and shall be included in future RRM filings;
e. interest on the Rule 8.209 regulatory asset account shall be calculated using the
pre-tax cost of capital most recently approved by the Commission. The use of the
pre-tax cost of capital is consistent with Rule 8.209. A return on Rule 8.209
capital investment is only earned once the investment is included in rate base. No
change in the Company's calculation of the interest component in its Rule 8.209
regulatory asset accounts is warranted through the period ended May 31, 2015.
Beginning June 1, 2015, interest expense shall be calculated monthly using simple
interest (i.e. 11.49% divided by 12, or approximately 0.96% per month) applied to
the total value of the Rule 8.209 asset investment (exclusive of interest) until such
time the Rule 8.209 regulatory asset is approved for inclusion in the Company's
rate base.
£ While Atmos and the ACSC Cities agree to apply the treatments and
methodologies set forth in this paragraph, subsections (a) — (e) in all future RRM
filings, the regulatory authority retains its right to disallow any capital investment
that is not shown to be prudently incurred, and any expense not shown to be
reasonable and necessary, in future RRM filings.
g. Atmos and the ACSC Cities acknowledge that their agreement regarding the
treatment and methodologies applicable to Rule 8.209 capital investments under
the RRM tariff shall not prejudice the right of either party to argue for different
treatments or methodologies in a future statement of intent proceeding.
6. Revenues approved pursuant to Paragraph 1 of the Settlement Agreement include
reimbursement of rate case expenses owed to the ACSC Cities in connection with the
2014 RRM filing.
7. The Signatories agree that each ACSC city shall approve this Settlement Agreement
and adopt an ordinance or resolution to implement for the ACSC Cities the rates,
terms, and conditions reflected in the tariffs attached to the Settlement Agreement as
Exhibit A. Atmos and ACSC further agree that at such time as all of the ACSC Cities
have passed an ordinance or resolution consistent with the Settlement and Atmos has
received such ordinance or resolution, Atmos shall withdraw its appeal of the currently
pending RRM filing before the Railroad Commission of Texas in connection with the
2014 RRM filing.
3
Attachment A
8. Atmos and the ACSC Cities further agree that the express terms of the Rider RRM are
supplemental to the filing, notice, regulatory review, or appellate procedural process of
the ratemaking provisions of Chapter 104 of the Texas Utilities Code. If the statute
requires a mandatory action on behalf of the municipal regulatory authority or Atmos,
the parties will follow the provisions of such statute. If the statute allows discretion on
behalf of the municipal regulatory authority, the ACSC Cities agree that they shall
exercise such discretion in such a way as to implement the provisions of the RRM
tariff. If Atmos appeals an action or inaction of an ACSC City regarding an RRM
filing to the Railroad Commission, the ACSC Cities agree that they will not oppose the
implementation of interim rates or advocate the imposition of a bond by Atmos
consistent with the RRM tariff. Atmos agrees that it will make no filings on behalf of
its Mid -Tex Division under the provisions of Section 104.301 of the Texas Utilities
code while the Rider RRM is in place. In the event that a regulatory authority fails to
act or enters an adverse decision regarding the proposed annual RRM adjustment, the
Railroad Commission of Texas shall have exclusive appellate jurisdiction, pursuant to
the provisions of the Texas Utilities Code, to review the action or inaction of the
regulatory authority exercising exclusive original jurisdiction over the RRM request.
In addition, the Signatories agree that this Settlement Agreement shall not be
construed as a waiver of the ACSC Cities' right to initiate a show cause proceeding or
the Company's right to file a Statement of Intent under the provisions of the Texas
Utilities Code.
9. The Signatories agree that the terms of the Settlement Agreement are interdependent
and indivisible, and that if any ACSC city enters an order that is inconsistent with this
Settlement Agreement, then any Signatory may withdraw without being deemed to
have waived any procedural right or to have taken any substantive position on any fact
or issue by virtue of that Signatory's entry into the Settlement Agreement or its
subsequent withdrawal. If any ACSC city rejects this Settlement Agreement, then this
Settlement Agreement shall be void ab initio and counsel for the ACSC Cities shall
thereafter only take such actions as are in accordance with the Texas Disciplinary
Rules of Professional Conduct.
10. The Signatories agree that all negotiations, discussions and conferences related to the
Settlement Agreement are privileged, inadmissible, and not relevant to prove any
issues associated with Atmos' 2014 RRM filing and 2015 RRM filing.
11. The Signatories agree that neither this Settlement Agreement nor any oral or written
statements made during the course of settlement negotiations may be used for any
purpose other than as necessary to support the entry by the ACSC Cities of an
ordinance or resolution implementing this Settlement Agreement.
12. The Signatories agree that this Settlement Agreement is binding on each Signatory
only for the purpose of settling the issues set forth herein and for no other purposes,
and, except to the extent the Settlement Agreement governs a Signatory's rights and
obligations for future periods, this Settlement Agreement shall not be binding or
precedential upon a Signatory outside this proceeding.
4
Attachment A
13. The Signatories agree that this Settlement Agreement may be executed in multiple
counterparts and may be filed with facsimile signatures.
Attachment A
Agreed to this 7 day of May, 2015.
ATMOS ENERGY CORP., MID-TEX DIVISION
By: � ��-
Jo A. Paris
President, Mid -Tex Division
Attachment A
Agreed to this lf- day of May 2015.
ATTORNEY FOR ATMOS CITIES STEERING COMMITTEE, WHOSE MEMBERS
INCLUDE THE CITIES OF ABILENE, ADDISON, ALLEN, ALVARADO, ANGUS, ANNA,
ARGYLE, ARLINGTON, AUBREY, BEDFORD, BELLMEAD, BENBROOK, BEVERLY
HILLS, BLOSSOM, BLUE RIDGE, BOWIE, BOYD, BRIDGEPORT, BROWNWOOD,
BUFFALO, BURKBURNETT, BURLESON, CADDO MILLS, CANTON, CARROLLTON,
CEDAR HILL, CELESTE, CELINA, CENTERVILLE, CISCO, CLARKSVILLE, CLEBURNE,
CLYDE, COLLEGE STATION, COLLEYVILLE, COLORADO CITY, COMANCHE,
COMMERCE, COOLIDGE, COPPELL, COPPERAS COVE, CORINTH, CORRAL CITY,
CRANDALL, CROWLEY, DALWORTHINGTON GARDENS, DENISON, DESOTO,
DUNCANVILLE, EASTLAND, EDGECLIFF VILLAGE, EMORY, ENNIS, EULESS,
EVERMAN, FAIRVIEW, FARMERS BRANCH, FARMERSVILLE, FATE, FLOWER
MOUND, FOREST HILL, FORT WORTH, FRISCO, FROST, GAINESVILLE, GARLAND,
GARRETT, GRAND PRAIRIE, GRAPEVINE, GUNTER, IIALTOM CITY, HARKER
HEIGHTS, HASKELL, HASLET, HEWITT, HIGHLAND PARK, HIGHLAND VILLAGE,
HONEY GROVE, HURST, IIUTTO, IOWA PARK, IRVING, JUSTIN, KAUFMAN, KEENE,
KELLER, KEMP, KENNEDALE, KERENS, KERRVILLE, KILLEEN, KRUM, LAKE -
WORTH, LAKESIDE, LANCASTER, LEWISVILLE, LINCOLN PARK, LITTLE ELM,
LORENA, MADISONVILLE, MALAKOFF, MANSFIELD, MCKINNEY, MELISSA,
MESQUITE, MIDLOTHIAN, MURPHY, NEWARK, NOCONA, NORTH RICHLAND
HILLS, NORTHLAKE, OAKLEAF, OVILLA, PALESTINE, PANTEGO, PARIS, PARKER,
PECAN HILL, PETROLIA, PLANO, PONDER, POTTSBORO, PROSPER, QUITMAN, RED
OAK, RENO (PARKER COUNTY), RICHARDSON, RICHLAND, RICHLAND HILLS,
ROANOKE, ROBINSON, ROCKWALL, ROSCOE, ROWLETT, ROYSE CITY, SACHSE,
SAGINAW, SANSOM PARK, SEAGOVILLE, SHERMAN, SNYDER, SOUTHLAKE,
SPRINGTOWN, STAMFORD, STEPHENVILLE, SULPHUR SPRINGS, SWEETWATER,
TEMPLE, TERRELL, THE COLONY, TROPHY CLUB, TYLER, UNIVERSITY PARK,
VENUS, VERNON, WACO, WATAUGA, WAXAHACHIE, WESTLAKE, WHITE
SETTLEMENT, WHITESBORO, WICHITA FALLS, WOODWAY, AND WYLIE.
Geoffreq ay*
* Subject to approval by ACSC City Councils
7
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C — COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 1 PAGE:
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
Amou A
Customer Charge per Bill $ 40.00 per month
Rider CEE Surcharge $ 0.00 per month'
Total Customer Charge $ 40.00 per month
Commodity Charge — All Ccf $ 0.08020 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.
1 Reference Rider CEE - Conservation And Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2014.
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I — INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE:
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 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 3,500 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 Amount
Customer Charge per Meter $ 700.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.2937 per MMBtu
Next 3,500 MMBtu $ 0.2151 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0461 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 Platts 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 Platts 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.
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I — INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE:
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.
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R — RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: I Bills Rendered on or after 06/01/2015 1 PAGE:
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 Amount '
Customer Charge per Bill $ 18.60 per month
Rider CEE Surcharge $ 0.02 per month'
Total Customer Charge $ 18.62 per month
Commodity Charge — All Ccf $0.09931 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 10170. Surcharge billing effective July 1, 2014.
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T — TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF 1111
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: I Bills Rendered on or after 06/01/2015 1 PAGE:
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.
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 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 MMBtu
All MMBtu over 5,000 MMBtu
Amount:.. .
$ 700.00 per month
$ 0.2937 per M M Btu
$ 0.2151 per M M Btu
$ 0.0461 per M M Btu
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).
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 Platts 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.
Attachment A Exhibit A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T — TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 I PAGE:
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 Platts 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 Platts 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.
Attachment A
Exhibit A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2015 PAGE:
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; = WNAFi x q;i
Where q;i is the relevant sales quantity for the jth customer in ith rate schedule.
Attachment A Exhibit A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2016 PAGE:
Base Use/Heat Use Factors
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.22
0.1404
98.80
0.6372
Austin
11.59
0.1443
213.62
0.7922
Dallas
14.12
0.2000
208.11
0.9085
Waco
9.74
0.1387
130.27
0.6351
Wichita
11.79
0.1476
122.35
0.5772
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, 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 a Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
(a)
ATMOS ENERGY CORP., MID-TEX DIVISION
PROOF OF REVENUES AND PROPOSED TARIFF STRUCTURE
TEST YEAR ENDING DECEMBER 31, 2014
(b) (c)
1 Proposed Change In Rates:
2 Proposed Change In Rates without Revenue Related Taxes:
3
4
5
6
7 Residential
8 Commercial
9 Industrial and Transportation
10 Net Revenue Requirements GUD No. 10170
11
12
17
18 Rate Class
19
20 Residential Base Charge
21 Residential Consumption Charge
22 Commercial Base Charge
23 Commercial Consumption Charge
24 I&T Base Charge
25 I&T Consumption Charge Tier 1 MMBTU
26 I&T Consumption Charge Tier 2 MMBTU
27 I&T Consumption Charge Tier 3 MMBTU
28
29
Data Sources:
GUD10170_FINAL.xlsm
Revenue
Requirements
$ 338,431,486
$ 84,223,622
$ 11,490,316
$ 434,145,424
(d) (e)
$21,066,527 Schedule A
Ln 1 divided by factor on WP F-5.1
Allocations
77.95% Per GUD 10170 Final Order
19.40% Per GUD 10170 Final Order
2.65% Per GUD 10170 Final Order
Proposed
Proposed
Proposed
Change In
Current
Change
Rates
Revenues
$ 18.20
$
0.36
$,
18:56.
$
6,351,350 $
$ 0.08819
$
0.01112
$
r0 09931
$
9,049,383 $
$ 38.50
$
1.37
$...,
. ':...3987;
$
2,000,584 $
$ 0.07681
$
0.00339
$
'. 0 08020
$
1,834,968 $
$ 675.00
$
22.35
$
69738';
$
220,192 $
$ 0.2807
$
0.0130
$.; .:
0.2937.
$
142,055 $
$ 0.2056
$
0.0095
$ '"
:: 0 2151
: $
117,051 $
$ 0.0441
$
0.0020
$
_ 0.0461
$
42,703 $
$:
:19,758,287: $
(fl
Proposed
Revenues
Exhibit B
Proposed Rates
with Rate Case
Expenses
327,447,398
1
18.60:
80,817,829
58,221,364
$.
40.00.
43,411,339
. $
0.-08020
6,870,292
$ .
700.00 .
3,209,350
:$
0;2937:
2,650,282
$
0:2151
984,314
$ .
0.0461:
523,612,169
D
v
S
cD
i0
(a)
ATMOS ENERGY CORP., MID-TEX DIVISION
PROOF OF REVENUES AND PROPOSED TARIFF STRUCTURE
TEST YEAR ENDING DECEMBER 31, 2014
(b) (c)
1 Proposed Change In Rates:
2 Proposed Change In Rates without Revenue Related Taxes:
3
4
5
6
7 Residential
8 Commercial
9 Industrial and Transportation
10 Net Revenue Requirements GUD No. 10170
11
12
17
18 Rate Class
19
20 Residential Base Charge
21 Residential Consumption Charge
22 Commercial Base Charge
23 Commercial Consumption Charge
24 I&T Base Charge
25 I&T Consumption Charge Tier 1 MMBTU
26 I&T Consumption Charge Tier 2 MMBTU
27 I&T Consumption Charge Tier 3 MMBTU
28
29
Data Sources:
GUD10170_FINAL.xlsm
Revenue
Requirements
$ 338,431,486
$ 84,223,622
$ 11,490,316
$ 434,145,424
Current
(d) (e)
$21,066,527 Schedule A
$19,757 254 Ln 1 divided by factor on WP_F-5.1
Allocations
77.95% Per GUD 10170 Final Order
19.40% Per GUD 10170 Final Order
2.65% Per GUD 10170 Final Order
Proposed
Change
$ 18.20
$
0.36
$ 0.08819
$
0.01112
$ 38.50
$
1.37
$ 0.07681
$
0.00339
$ 675.00
$
22.35
$ 0.2807
$
0.0130
$ 0.2056
$
0.0095
$ 0.0441
$
0.0020
Proposed
Proposed Change In
Rates Revenues
6,351,350 $
9,049,383 $
$
2,000,584 $
1,834,968 $
$
69735 :
$
220,192 $
0:2937::
$
142,055 $
02151
$
117,051 $
0.0461
$
42,703 $
19,758,287 : $
Attachment B
M (g)
Proposed Rates
Proposed with Rate Case
Revenues Expenses
327,447,398
$
.18;60.
80,817,829
$
.0:09931,_:
58,221,364
S
40.00.:
43,411,339
. $
.0.08020
6,870,292
$ .
700.00
3,209,350
$
0.29.37:
2,650,282
$
0:2151
984,314
$ .
0.0461.
523,612,169
Attachment C
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C — COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 1 PAGE:
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 Amount`, a
Customer Charge per Bill $ 40.00 per month
Rider CEE Surcharge $ 0.00 per month'
Total Customer Charge $ 40.00 per month
Commodity Charge — All Ccf $ 0.08020 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.
1 Reference Rider CEE - Conservation And Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2014.
Attachment C
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I — INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 1 PAGE:
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 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 3,500 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 Amount
Customer Charge per Meter $ 700.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.2937 per MMBtu
Next 3,500 MMBtu $ 0.2151 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0461 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 Platts 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 Platts 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
Attachment C
RRC Tariff No:
RATE SCHEDULE: I — INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE:
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.
Attachment C
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R — RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF 1111
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: I Bills Rendered on or after 06/01/2015 1 PAGE:
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 :..,, oust
Customer Charge per Bill $ 18.60 per month
Rider CEE Surcharge $ 0.02 per month'
Total Customer Charge $ 18.62 per month
Commodity Charge — All Ccf $0.09931 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 10170. Surcharge billing effective July 1, 2014.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T — TRANSPORTATION
Attachment C
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE:
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.
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 bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 700.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.2937 per MMBtu
Next 3,500 MMBtu $ 0.2151 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0461 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).
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 Platts 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T — TRANSPORTATION
Attachment C
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2015 PAGE:
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 Platts 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 Platts 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.
Attachment C
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2015 I PAGE:
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; = WNAFi x qji
Where q;; is the relevant sales quantity for the jth customer in ith rate schedule.
Attachment C
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2015 PAGE:
Base Use/Heat Use Factors
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.22
0.1404
98.80
0.6372
Austin
11.59
0.1443
213.62
0.7922
Dallas
14.12
0.2000
208.11
0.9085
Waco
9.74
0.1387
130.27
0.6351
Wichita
11.79
0.1476
122.35
0.5772
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, 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 a Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
File Date: February 27, 2015
ATTACHMENT D
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2014
Shared Services Mid -Tex Direct
Pension Post -Retirement Pension Supplemental Post -Retirement
Line Account Plan Medical Plan Account Plan Executive Benefit Medical Plan Adjustment
No. Description ("PAP") ("FAS 106") ("PAP") Plan ("SERP") ("FAS 106") Total
(a) (b) (c) (d) (e) M (g)
Fiscal Year 2014 Towers Watson Report (excluding Removed Cost
1 Centers)
$
6,388,826
$ 4,542,023
$ 9,481,670 $
2 Allocation to Mid -Tex
46.26%
46,26%
71.70%
FY14 Towers Watson Benefit Costs (excluding Removed Cost
3 Centers) Allocated to MTX (Ln 1 x Ln 2)
$
2,955,304
$ 2,101,021
$ 6,798,531 $
4 O&M and Capital Allocation Factor
100.00%
100,00%
100.00%
FY14 Towers Watson Benefit Costs To Approve (excluding
5 Removed Cost Centers) (Ln 3 x.Ln 4)
$
2,955,304
$ 2,101,021
$ 6,798,531 $
6
7
8 Summary of Costs to Approve:
9
10 Total Pension Account Plan ("PAP")
$
2,955,304
$ 6,798,531
11 Total Post -Retirement Medical Plan ("FAS 106")
$ 2,101,021
12 Total Supplemental Executive Retirement Plan ("SERP")
$
13 Total (Ln 10 + Ln 11 + Ln 12)
$
2,955,304
$ 2,101,021
$ 6,798,531 $
14
15
16 O&M Expense Factor
95.82%
95.82%
43.03%
17
18 Expense Portion (Ln 13 x Ln 16)
$
2,831,859
$ 2,013,260
$ 2,925,600 $
19
20 Capital Factor
4.18%
4.18%
56.97%
21
22 Capital Portion (Ln 13 x Ln 20)
$
123,445
$ 87,761
$ 3,872,930 1
23
24 Total (Ln 18 + Ln 22)
$
2,955,304
$ 2,101,021
$ 6,798,531 1
165,758 $ 8,736,645
100.00% 71.70%
165,758 $ 6,264,334
100.00% 100.00%
165,758 $ 6,264,334 $ 18,284,949
$ 9,753,835
$ 6,254,334 8,365,356
165,758 165,758
165,758 $ 6,264,334 $ 18,284,949
21.00% 43.03%
34,809 $ 2,695,721 $ 10,501,250
79.00% 56.97%
130,949 $ 3,568,614 $ 7,783,699
165,758 $ 6,264,334 $ 18,284,949
WP F-2.3.1
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved` on "5%1972015 Or"dinaince=No. 217"55-Now-
DATE: Tuesday, May 19, 2015 REFERENCE NO.: G-18486
LOG NAME: 21APPROVE 2014 AND 2015 ATMOS RRM AND RATE INCREASE
SUBJECT:
Adopt Ordinance Approving Negotiated Settlement with Atmos Energy Corporation d/b/a Atmos Energy
Corporation, Mid -Tex Division, Resolving the 2014 and 2015 Rate Review Mechanism Filings and Ordering
Authorized Gas Rates (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance, which approves a negotiated
settlement with Atmos Energy Corporation d/b/a Atmos Energy Corporation, Mid -Tex Division, resolving
the 2014 and 2015 Rate Review Mechanism filings and establishing maximum permitted rates and
charges that Atmos may assess customers in the City of Fort Worth effective June 1, 2015.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve a settlement with Atmos
Energy Corporation d/b/a Atmos Energy Corporation, Mid -Tex Division (Atmos or Company), regarding
the Company's 2014 and 2015 filings under the Rate Review Mechanism (RRM). The settlement was
negotiated and is recommended by the Executive Committee of the Atmos Cities Steering Committee
(ACSC), which is a coalition of more than 150 cities, including Fort Worth, that work cooperatively to
provide members with more effective and efficient representation on gas -related issues.
The RRM Tariff was most recently re -adopted in 2013 (M&C G-17912) and serves as an alternative rate
adjustment mechanism to the default process outlined in state law. Like the state -law adjustment
mechanism, the RRM allows a company to adjust rates to recover capital improvement costs, but unlike
state law, the RRM takes into account a company's overall financial situation including operating costs
and revenues and allows cities, as regulatory entities, to review filings and and identify expenses or
investments considered to be unreasonable or unnecessary that should be reduced or disallowed. Since
it was originally adopted, the RRM process has generally resolved in less of an increase than Atmos
would have been entitled to implement under the default state -law adjustment mechanism.
2014 RRM Filina:
In February 2014, the Company filed its' annual filing under the RRM Tariff seeking an increase of $45.7
million. Although ACSC attempted to reach a settlement with Atmos, as it had in past years, the wide
differences between Atmos and ACSC's consultant's recommendations made a compromise
impossible. On the recommendation of the ACSC Executive Committee and ACSC's legal counsel, the
City adopted an ordinance denying the requested rate increase (M&C G-18203; Ordinance No. 21240-05-
2014).
The Company appealed the denial to the Railroad Commission of Texas (RRC), revising its requested
increase down to $43.8 million. In accordance with the terms of the RRM Tariff, Atmos was allowed to
begin charging rates based on the amount requested in its appeal, subject to potential refund depending
on the RRC's decision. A hearing was held on the appeal on September 3, 2014, but a Proposal for
Logname: 21APPROVE 2014 AND 2015 ATMOS RRM AND RATE INCREASE Pagel of 3
Decision (PFD) in the appeal was not issued until April 28, 2015. This PFD was generally not favorable to
ACSC, but did recommend a reduction of approximately $860,000.00 to the Company's adjusted 2014
filing.
2015 RRM Filina:
On February 27, 2015, while the parties were still awaiting the PFD in the appeal of the 2014 RRM filing,
Atmos filed its 2015 rate increase request under the RRM Tariff. That filing sought additional revenues in
the amount of $28.762 million systemwide.
The City worked with ACSC to analyze the schedules and evidence offered by Atmos to support its 2015
request to increase rates. The ordinance and its attached settlement agreement are the result of
negotiations between the ACSC Executive Committee and the Company to resolve issues raised by
ACSC during the review and evaluation of Atmos's filing.
Settlement Terms:
The ordinance and settlement tariffs approve rates that will increase the Company's revenues by $65.7
million over the rates that the City last approved back in 2013. However, as noted above, the bulk of that
increase is attributable to the 2014 adjustment request and has been included in ratepayers' bills since
Atmos filed its appeal to the RRC last year.
The additional systemwide revenue increase that will go into effect on June 1 is $21,962,784.00. That
figure represents a reduction of more than six million dollars from the amount Atmos requested in its' initial
2015 RRM filing and is substantially less than the $38 million increase the Company would have been
entitled to implement under the default state -law adjustment mechanism. The recommended settlement
agreement also requires Atmos to abate its RRC appeal pending approval by all ACSC cities of the
settlement agreement and requires Atmos to give the cities the benefit of the $860,000.00 reduction to the
2014 adjustment that was recommended by the PFD.
On approval of the attached ordinance and settlement documents, new rates would be effective for bills
rendered on or after June 1, 2015. The impact of the new rates will be as follows:
Customer Class
lResidential
Commercial
Ilndustrial
ITransportation
Current#
Customer
Charge
$18.22*per month
$38.85 per month
$675.00 per
month
$675.00 per
month
Current#
New Customer Commodity
Charge Charge
$18.62* per month $0.08998 per Ccf
$40.00 per month $0.07678 per Ccf
$700.00 per Declining block
month
$700.00 per Declining block
month
New Commodity
Charge
$0.09931 per Ccf
$0.08020 per Ccf
Declining block
Declining block
* Customer charges include a surcharge of $0.02 per month in accordance with the Conservation and
Energy Efficiency Rider (Rider CEE) approved by the RRC in Gas Utility Docket No. 10170.
# Current rates and charges reflect the amount Atmos has actually been charging since filing its' 2014
appeal to the RRC rather than the rates last approved by the Fort Worth City Council in 2013.
Impact to Residential Customers:
Implementation of the new rates would increase both the customer charge and the commodities
charge. The residential customer charge would increase by $0.40 per month. The monthly bill impact of
the commodity charge increase for the average residential customer in Atmos Mid -Tex will be an increase
of $0.97 based on average monthly consumption of 46 Ccf. However, because the average consumption
Logname: 21APPROVE 2014 AND 2015 ATMOS RRM AND RATE INCREASE Page 2 of 3
in Fort Worth is slightly less than in the system overall, the commodity -charge increase for the average
Fort Worth residential customer will be $0.91 per month.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
Funds.
FUND CENTERS:
TO Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Oriainatina Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Fernando Costa (6122)
Wayne Corum (5118)
Bridgette Garrett (8518)
Logname: 21APPROVE 2014 AND 2015 ATMOS RRM AND RATE INCREASE Page 3 of 3