Item 4ICITY OF
SOUTHLAKE
MEMORANDUM
May 8, 2017
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Approve Ordinance No. 1172, 1St Reading, Approving a
negotiated settlement between Atmos Cities Steering
Committee ("ACSC") and Atmos Energy Corp. Mid -Tex
Division.
Action
Requested: Approval of Ordinance 1172
Background
Information: The purpose of this item is to seek City Council approval of
the negotiated settlement between Atmos Cities Steering
Committee ("ACSC") and Atmos Energy Corp. Mid -Tex
Division ("Atmos") regarding 2017 rate review mechanism
filings.
March 1, 2017, Atmos filed an application seeking a rate
increase. The City, along with over 150 other cities
served by Atmos, is a member of the ACSC. This group
of cities has been working on a settlement agreement
with Atmos regarding the rate increases.
Ordinance 1172 and the subsequent attachments are
the results of negotiation between the ACSC Executive
Committee and Atmos to resolve issues identified during
the review and evaluation of Atmos filing.
The proposed settlement agreement for Council
approval does the following:
o Approves rates that will increase Atmos' revenues
by $48 million which is $9.4 million less than original
requested by Atmos in the rate request:
■ monthly residential customer charge will
increase $0.50;
■ consumption charge will increase .03049 per
Centum cubic feet (Ccf.).
A typical residential customer consuming 47
Ccf will see a monthly increase of $2.04 (about
a 3.87% increase).
Page 2of2
Financial
Considerations:
Strategic Link:
Citizen Input/
Board Review
Legal Review
Alternatives:
Supporting
Documents:
A typical commercial customer will see an
increase of $6.27 or 2.37%.
o Establishes the baseline for Atmos pensions and
other post -employment benefits for future rate
cases.
o Requires Atmos to reimburse Cities for reasonable
ratemaking costs associated with reviewing and
processing the rate filing.
o Requires a rate reconciliation in the event that
federal income tax rates change.
The ACSC Executive Committee, ACSC legal counsel and
consultants recommend that all cities adopt the ordinance
approving the negotiated settlement agreement resolving
2017 filing and implementing the rate change.
None
132: Collaborate with select partners to implement service
solutions
None required
Lloyd Gosselink Rochelle & Townsend, P.C. prepared the
ordinance.
Deny the ordinance which would result in another contested
case hearing on appeal of the 2017 filing
Ordinance 1172
New Tariffs (Attachment A)
Proof of Revenues (Attachment B)
Baseline for pensions for RRM filing (Attachment C)
Staff
Recommendation: Approval of Ordinance 1172
ORDINANCE NO. 1172
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, APPROVING A NEGOTIATED
SETTLEMENT BETWEEN THE ATMOS CITIES STEERING
COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-
TEX DIVISION REGARDING THE COMPANY'S 2017 RATE
REVIEW MECHANISM FILINGS; 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
RECONCILIATION AND RATE ADJUSTMENTS IF FEDERAL
INCOME TAX RATES CHANGE; TERMINATING THE RRM
PROCESS FOR 2018 PENDING RENEGOTIATION OF RRM
TERMS AND CONDITIONS; 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 Southlake, 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 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 new 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
1
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, on March 1, 2017, Atmos Mid -Tex filed its 2017 RRM rate request with
ACSC Cities; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2017 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 $48
million on a system -wide basis; and
WHEREAS, the attached tariffs 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;
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
WHEREAS, the Company and ACSC have agreed that rates should be adjusted if any
change in federal income tax rates is implemented during the period that rates approved herein
remain in place; and
WHEREAS, because ACSC believes that certain provisions of the current terms and
conditions of the RRM tariff are inconsistent with market conditions, the City expects
renegotiation of the current RRM tariff in the Summer of 2017.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS:
2
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 settled amount of an increase in revenues
of $48 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 2017 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 the existing rates for natural gas service provided by Atmos Mid -Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment A, are just
and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional $48
million in revenue over the amount allowed under currently approved 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 C, attached
hereto and incorporated herein.
Section 5. Consistent with Texas Utilities Code Section 104.055(c), Atmos Energy's
recovery of federal income tax expense through the Rider RRM has been computed using the
statutory income tax rate. In the event that a change in the statutory income tax rate is
implemented during the Rider RRM Rate Effective Date, Atmos Energy shall reconcile the
difference between the amount of federal income tax expense included in the Rider RRM
calculation for the Rate Effective Date with the amount of federal income tax expense authorized
under the new statutory income tax rate. The reconciliation period shall be from the date on
which any new statutory income tax rate is implemented through the Rate Effective Date. An
3
interest component calculated at the customer deposit interest rate then in effect as approved by
the Railroad Commission of Texas shall be applied to the federal income tax expense
reconciliation. Further, any required reconciliation of federal income tax expense shall be
included as part of Atmos Mid-Tex's next annual RRM filing and shall be returned to or
recovered from customers as a one-time credit or surcharge to the customer's bill.
Section 6. The City requires renegotiation of RRM tariff terms and conditions during the
Summer of 2017. If an agreed renegotiated RRM tariff cannot be achieved, the City will
terminate the RRM process and consider initiation of a traditional rate case to reduce the
Company's authorized return on equity.
Section 7. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Company's 2017 RRM filing.
Section 8. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 9. 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 10. 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 11. 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, 2017.
2
Section 12. 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 LJB 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 day of , 2017.
ATTEST:
Mayor
APPROVED AS TO FORM:
City Secretary City Attorney
2557/28/7339845
5
Attachment 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
Rider CEE Surcharge
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2017
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
$ 19.60 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 19.62 per month
Commodity Charge — All Ccf
$0.14427 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, 2016.
Attachment 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
Rider CEE Surcharge
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2017
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
Customer Charge per Bill
$ 44.70 per month
Rider CEE Surcharge
$ 0.08 per month'
Total Customer Charge
$ 44.78 per month
Commodity Charge — All Ccf
$ 0.09279 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, 2016.
Attachment 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
First 0 MMBtu to 1,500 MMBtu
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2017
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
$ 799.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3374 per MMBtu
Next 3,500 MMBtu
$ 0.2470 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0530 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 A
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 06/01/2017
TPAGE:
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
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
First 0 MMBtu to 1,500 MMBtu
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2017
TPAGE:
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
$ 799.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3374 per MMBtu
Next 3,500 MMBtu
$ 0.2470 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0530 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
Attachment A
RRC Tariff No:
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 06/01/2017
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
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 11/01/2017
PAGE:
Provisions for Adjustment
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 Adjustment
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;j
Where q;j is the relevant sales quantity for the jth customer in ith rate schedule.
Attachment 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 11/01/2017
TPAGE:
Base Use/Heat Use Factors
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 an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
9.79
0.1347
93.16
0.6060
Austin
10.37
0.1483
190.68
0.9069
Dallas
13.36
0.2089
180.35
1.0191
Waco
9.64
0.1348
124.37
0.5791
Wichita
11.20
0.1412
107.96
0.5571
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 an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
File Date: March 1, 2017
ATMOS ENERGY CORP., MID-TEX DIVISION
PROPOSED TARIFF STRUCTURE (BEFORE RATE CASE EXPENSE RECOVERY)
TEST YEAR ENDING DECEMBER 31, 2016
(a) (b) (c) (d) (e) (f) (g)
1 Proposed Change In Rates: $ 48,000,000 Schedule A
2 Proposed Change In Rates without Revenue Related Taxes: $ 44,800,457 Ln 1 divided by factor on WP F-5.1
3
4
5
6
Revenue Requirements
Allocations
7 Residential
$ 338,431,486
77.95% Per GUD 10170 Final Order
8 Commercial
84,223,622
19.40% Per GUD 10170 Final Order
9 Industrial and Transportation
11,490,316
2.65% Per GUD 10170 Final Order
10 Net Revenue Requirements GUD No. 10170
$ 434,145,424
0.11378
11
20,954,111
Commercial Base Charge
12
41.70
$ 2.96
13
Commercial Consumption Charge
$
14
$ 0.00797
4,345,614
15
$
737.00
16
17
18
19
20
21
22
23
24
25
26
27
28
29
With Proportional Increase all classes but Residential and a 40% residential base charge increase:
Proposed
Current
Prospective
Revenues
Residential Base Charge
$
19.08
$ 0.77 $
13,969,407
Residential Consumption Charge
$
0.11378
$ 0.02502
20,954,111
Commercial Base Charge
$
41.70
$ 2.96
4,345,614
Commercial Consumption Charge
$
0.08494
$ 0.00797
4,345,614
I&T Base Charge
$
737.00
$ 62.70
592,856
I&T Consumption Charge Tier 1 MMBTU
$
0.3096
$ 0.0278
279,522
I&T Consumption Charge Tier 2 MMBTU
$
0.2267
$ 0.0203
225,635
I&T Consumption Charge Tier 3 MMBTU
$
0.0486
$ 0.0044
87,699
Consumption Charge Tier 1 MMBTU
$
0.0278
$
44,800,457
(h) (i)
Attachment B
0) (k)
WP J-5
Page 1 of 1
Proposed
Changeln
Proposed
Proposed Change
Revenues
Rates
Proposed Revenues
idential Base Charge
$
0.52 $
9,385,859
$ 19.60
$ 353,851,897
idential Consumption Charge
$
0.03049
25,534,444
$ 0.14427
120,821,718
imercial Base Charge
$
3.00
4,409,676
$ 44.70
65,707,365
imercial Consumption Charge
$
0.00785
4,280,326
$ 0.09279
50,595,093
Base Charge
$
62.75
593,364
$ 799.75
7,562,427
Consumption Charge Tier 1 MMBTU
$
0.0278
279,726
$ 0.3374
3,394,949
Consumption Charge Tier 2 MMBTU
$
0.0203
225,178
$ 0.2470
2,739,848
Consumption Charge Tier 3 MMBTU
$
0.0044
88,488
$ 0.0530
1,065,879
$
44,797,060
$ 605,739,177
WP J-5
Page 1 of 1
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2016
Line
No. Description
(a)
1 Fiscal Year 2017 Willis Towers Watson Report as adjusted (1), (3)
2 Allocation to Mid -Tex
Fiscal Year 2017 Actuarially Determined O&M Benefits (Ln 1 x Ln 2)
3
4 O&M and Capital Allocation Factor
Fiscal Year 17 Willis Towers Watson Benefit Costs To Approve
5 (excluding Removed Cost Centers) (Ln 3 x Ln 4)
6
7
8 Summary of Costs to Approve:
9
10 Total Pension Account Plan ("PAP")
11 Total Post -Retirement Medical Plan ("FAS 106")
12 Total Supplemental Executive Retirement Plan ("SERP")
13 Total (Ln 10 + Ln 11 + Ln 12)
14
15
16 O&M Expense Factor
17
18 Expense Portion (Ln 13 x Ln 16)
19
20 Capital Factor
21
22 Capital Portion (Ln 13 x Ln 20)
23
24 Total (Ln 18 + Ln 22)
Attachment C
Shared Services
25.95%
Mid -Tex Direct
80.00%
62.25%
Pension
Post -Retirement
Pension
Supplemental
Post -Retirement
$ 584,777 $
Account Plan
Medical Plan
Account Plan
Executive Benefit
Medical Plan
Adjustment
("PAP")
("FAS 106")
("PAP")
Plan ("SERP")
("FAS 106")
Total
(b)
(c)
(d)
(e)
(f) (g)
$ 5,004,862
$ 2,864,121
$ 8,234,627
$ 194,941
$ 4,375,142
45.03%
45.03%
71.23%
100.00%
71.23%
$ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420
100.00% 100.00% 100.00% 100.00% 100.00%
$ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420 $ 12,719,968
$ 2,253,477 $ 5,865,537 $ 8,119,015
$ 1,289,592 $ 3,116,420 4,406,012
$ 194,941 194,941
$ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420 $ 12,719,968
74.05% 74.05% 37.75% 20.00% 37.75%
$ 1,668,700 $ 954,943 $ 2,214,432 $ 38,988 $ 1,176,551 $ 6,053,614
25.95%
25.95%
62.25%
80.00%
62.25%
$ 584,777 $
334,649 $
3,651,105 $
155,953 $
1,939,870 $ 6,666,354
$ 2,253,477 $
1,289,592 $
5,865,537 $
194,941 $
3,116,420 $ 12,719,968