Item 4U - MemoCITY OF
SOUTHLAKE Item4U
MEMORANDUM
September 20, 2022
To: Shana Yelverton, City Manager
From: Daniel Cortez, Director of Economic Development & Tourism
Subject: Item 4U - Resolution No. 22-023, approving a negotiated settlement
between the Atmos Cities Steering Committee & Atmos Energy Corp., Mid -
Tex Division regarding the 2022 Rate Review Mechanism Filing.
Action
Requested: Approval of Resolution No. 22-023, approving a negotiated settlement between
the Atmos Cities Steering Committee (ACSC) and Atmos Energy Corp., Mid -
Tex Division.
Background
Information: The City of Southlake, along with 181 other Mid -Texas cities, are served by
Atmos Energy Corporation Mid -Tex Division and are members of the Atmos
Cities Steering Committee (ACSC). The ACSC undertakes activities on behalf
of its city members and their citizens such as participation in rate cases,
rulemakings, advocacy and legislative efforts that impact natural gas rates.
In 2007, ACSC and Atmos Mid -Tex settled a rate application filed by the
Company pursuant to Section 104.301 of the Texas Utilities Code for an interim
rate adjustment commonly referred to as a GRIP filing (arising out of the Gas
Reliability Infrastructure Program legislation). That settlement created a
substitute rate review process, referred to as Rate Review Mechanism ("RRM"),
as a substitute for future filings under the GRIP statute.
Since 2007, there have been several modifications to the original RRM Tariff.
The most recent iteration of an RRM Tariff was reflected in a resolution adopted
by ACSC members in 2018.
On or about April 1, 2022, the Company filed a rate request pursuant to the
RRM Tariff adopted by ACSC members. The Company claimed that its cost -of -
service in a test year ending December 31, 2021, entitled it to additional
system -wide revenues of $141.3 million.
Resolution No. 22-023 and the subsequent attachments are the results of the
negotiation between the ACSC Executive Committee and Atmos to resolve
issues identified during the review and evaluation of the Atmos filing. The
proposed settlement agreement for Council approval does the following:
• Approves rates that will increase Atmos' revenues by $115 million which is
$26.3 million less than original requested by Atmos in the rate request:
• Typical residential customer will see a monthly increase of $4.60 (or about
6.7% increase)
• Typical commercial customer will see an increase of $14.34 (or about 4.3%
increase)
• Requires Atmos to reimburse Cities for reasonable rate -making costs
associated with reviewing and processing the rate filing
• Establishes a benchmark for pensions and retiree medical benefits to be
used in future rate cases or RRM filings
The ACSC Executive Committee, ACSC legal counsel and consultants
recommend that all cities adopt the resolution approving the negotiated
settlement agreement resolving the 2022 filing and implement the rate change.
If approved, the proposed rates would go into effect on October 1, 2022.
Financial
Considerations: None
Strategic Link: This item is specifically linked to the City's Strategy Map through B2:
Collaborate with select partners to implement service solutions.
Citizen Input/
Board Review: None required.
Legal Review: Lloyd Gosselink Rochelle & Townsend, P.C. prepared this resolution. The
Legislature's GRIP process allowed gas utilities to receive annual rate
increases associated with capital investments. The RRM process has proven
to result in a more efficient and less costly (both from a consumer rate impact
perspective and from a ratemaking perspective) than the GRIP process. Given
Atmos Mid-Tex's claim that its historic cost of service should entitle it to recover
$141.3 million in additional system -wide revenues, the RRM settlement at $115
million for ACSC Cities reflects substantial savings to ACSC Cities. Settlement
at $115 million is fair and reasonable. The ACSC Executive Committee
consisting of city employees of 181 ACSC members urges all ACSC members
to pass the resolution before September 30, 2022. New rates become effective
October 1, 2022.
Alternatives: Deny the resolution which would result in another contested case hearing on
appeal of the 2022 filing and permits Atmos Energy to implement rates at the
original amount requested (subject to refund) until a resolution is passed.
Staff
Recommendation: Approval of Resolution 22-023, approving a negotiated settlement between the
Atmos Cities Steering Committee (ACSC) and Atmos Energy Corp., Mid -Tex
Division.
Supporting
Documents: Resolution 22-023
New Tariffs (Exhibit A)
Benchmark for pensions for RRM filing (Exhibit B)
Average Bill Comparison — Base Rates (Exhibit C)
Staff Contacts: Daniel Cortez (817) 748-8039
RESOLUTION NO. 22-023
A RESOLUTION 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 2022 RATE REVIEW MECHANISM FILING;
DECLARING EXISTING RATES TO BE UNREASONABLE;
ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS
CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING
THE RATES TO BE SET BY THE ATTACHED SETTLEMENT
TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC
INTEREST; APPROVING AN ATTACHMENT ESTABLISHING A
BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS;
REQUIRING THE COMPANY TO REIMBURSE ACSC'S
REASONABLE RATEMAKING EXPENSES; DETERMINING THAT
THIS RESOLUTION 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 RESOLUTION TO THE
COMPANY AND THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of Southlake, Texas ("City") is is a gas utility customer of Atmos
Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company"), and a regulatory authority
with an interest in the rates, charges, and services of Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a
coalition of similarly -situated cities served by Atmos Mid -Tex ("ACSC Cities") that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates
charged in the Atmos Mid -Tex service area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a Rate
Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC
Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted
by the Legislature, and that will establish rates for the ACSC Cities based on the system -wide
cost of serving the Atmos Mid -Tex Division; and
WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in
2018; and
WHEREAS, on about April 1, 2022, Atmos Mid -Tex filed its 2022 RRM rate request
with ACSC Cities based on a test year ending December 31, 2021; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2022 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 $115
million on a system -wide basis with an Effective Date of October 1, 2022; and
WHEREAS, ACSC agrees that Atmos' plant -in-service is reasonable; and
WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed
from future reasonableness evaluation of costs associated with incidents related to gas leaks;
and
WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with
the recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Exhibit B); and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
SECTION 1. That the findings set forth in this Resolution are hereby in all things
approved.
SECTION 2. That, without prejudice to future litigation of any issue identified by ACSC,
the City Council finds that the settled amount of an increase in revenues of
$115 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
2022 RRM filing, is in the public interest, and is consistent with the City's
authority under Section 103.001 of the Texas Utilities Code.
SECTION 3. That despite finding Atmos Mid-Tex's plant -in-service to be reasonable,
ACSC is not foreclosed in future cases from evaluating the reasonableness
of costs associated with incidents involving leaks of natural gas.
SECTION 4. That the existing rates for natural gas service provided by Atmos Mid -Tex
are unreasonable. The new tariffs attached hereto and incorporated herein
as Attachment 1, are just and reasonable, and are designed to allow Atmos
Mid -Tex to recover annually an additional $115 on a system -wide basis,
over the amount allowed under currently approved rates. Such tariffs are
hereby adopted.
SECTION 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex's next RRM filing shall be as set forth on Exhibit B, attached
hereto and incorporated herein.
SECTION 6. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Company's 2022 RRM filing.
SECTION 7. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Resolution, it is hereby repealed.
SECTION 8. That the meeting at which this Resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
SECTION 9. That if any one or more sections or clauses of this Resolution is adjudged to
be unconstitutional or invalid, such judgment shall not affect, impair, or
invalidate the remaining provisions of this Resolution, and the remaining
provisions of the Resolution 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 Resolution shall become effective from and after its passage with rates
authorized by attached tariffs to be effective for bills rendered on or after
October 1, 2022.
SECTION 11. That a copy of this Resolution shall be sent to Atmos Mid -Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs Mid -Tex Division,
Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas
75240, and to Thomas Brocato, General Counsel to ACSC, at Lloyd
Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900,
Austin, Texas 78701.
PASSED, APPROVED AND ADOPTED THIS 20TH DAY OF SEPTEMBER, 2022.
/_�1111111*15
Amy Shelley, TRMC
City Secretary
John Huffman, Mayor
I_1»:Zs]TI21NXTIV2r011aA V L to
City Attorney
Exhibit A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
R — RESIDENTIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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
$ 21.55 per month
Rider CEE Surcharge
$ 0.05 per month'
Total Customer Charge
$ 21.60 per month
Commodity Charge — All Ccf
$0.36223 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, 2022.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
C — COMMERCIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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
$ 63.50 per month
Rider CEE Surcharge
($ 0.01) per month'
Total Customer Charge
$ 63.49 per month
Commodity Charge — All Ccf
$ 0.14137 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, 2022.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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
$ 1,204.50 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.4939 per MMBtu
Next 3,500 MMBtu
$ 0.3617 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0776 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
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T — TRANSPORTATION
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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
$ 1,204.50 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.4939 per MMBtu
Next 3,500 MMBtu
$ 0.3617 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0776 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
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
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 qi; is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA — WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bills Rendered on or after 10/01/2022
Base Use/Heat Use Factors
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.58
0.1422
88.85
0.6666
Austin
9.90
0.1372
233.56
0.7819
Dallas
14.17
0.1938
186.38
0.9394
Waco
10.07
0.1308
140.10
0.7170
Wichita
11.43
0.1398
131.57
0.5610
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.
Exhibit B
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2021
Shared Services
Mid -Tex Direct
Post-
Supplemental Post -
Line
Pension Employment
Pension
Executive Benefit
Employment
Adjustment
No.
Description
Account Plan Benefit Plan
Account Plan
Plan
Benefit Plan
Total
(a)
(b) (c)
(d)
(e)
(f)
(g)
Proposed Benefits Benchmark - Fiscal Year 2022 Willis Towers Watson
1
Report as adjusted (1) (2) (3) $
1,715,323 $ 982,708 $
3,137,022
$ 313,319
$ (341,412)
2
Allocation to Mid -Tex
44.72% 44.72%
76.88%
100.00%
76.88%
3
Proposed Benefits Benchmark Costs Allocated to Mid -Tex (Ln 1 x Ln 2) $
767,038 $ 439,436 $
2,411,882
$ 313,319
$ (262,493)
4
O&M and Capital Allocation Factor
100.00% 100.00%
100.00%
100.00%
100.00%
5
Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4) (3) $
767,038 $ 439,436 $
2,411,882
$ 313,319
$ (262,493)
$ 3,669,182
6
7
8
Summary of Costs to Approve (1):
9
10
O&M Expense Factor (W P_F-2.3, Ln 2)
79.88% 79.88%
38.60%
11.00%
38.60%
11
12
13
Total Pension Account Plan $
612,700 $
931,100
$ 1,543,800
14
Total Post -Employment Benefit Plan
$ 351,016
$ (101,335)
249,681
15
Total Supplemental Executive Benefit Plan
$ 34,465
34,465
16
Total (Ln 13 + Ln 14 + Ln 15) $
612,700 $ 351,016 $
931,100
$ 34,465
$ (101,335)
$ 1,827,946
17
18
Notes:
19
1. Studies not applicable to Mid -Tex or Shared Services are omitted.
2. Mid -Tex is proposing that the Fiscal Year 2022 Willis Towers Watson actuarial
amounts shown on WP_F-2.3 and WP_F-2.3.1, be
approved by the RRM Cities as the benchmark
amounts to be used to calculate the regulatory asset or liability for future periods.
The benchmark amount approved by the RRM Cities
for future periods
includes only the expense amount.
20
The amount attributable to capital is recorded to utility plant through the overhead
process as described in the CAM.
21
3. SSU amounts exclude cost centers which do not allocate to Mid -Tex for rate making purposes.
W P_F-2.3.1
Page 1 of 1
Exhibit C
ATMOS ENERGY CORP., MID-TEX DIVISION
AVERAGE BILL COMPARISON - BASE RATES
TEST YEAR ENDING DECEMBER 31, 2021
Line
No.
1
Rate R (a) 43.8 Ccf
Current
Proposed
Change
2
Customer charge
$
20.85
3
Consumption charge
43.8
CCF
X $ 0.27979
=
12.25
4
Rider GCR Part A
43.8
CCF
X $ 0.35744
=
15.66
5
Rider GCR Part B
43.8
CCF
X $ 0.35918
=
15.73
6
Subtotal
$
64.49
7
Rider FF & Rider TAX
$
64.49
X 0.06408
=
4.13
8
Total
$
68.62
9
10
Customer charge
$
21.55
11
Consumption charge
43.8
CCF
X $ 0.36223
=
15.87
12
Rider GCR Part A
43.8
CCF
X $ 0.35744
=
15.66
13
Rider GCR Part B
43.8
CCF
X $ 0.35918
=
15.73
14
Subtotal
$
68.81
15
Rider FF & Rider TAX
$
68.81
X 0.06408
=
4.41
16
Total
$
73.22
$ 4.60
17
6.71 %
18
19
Rate C (a) 345.7 Ccf
Current
Proposed
Change
20
Customer charge
$
56.50
21
Consumption charge
345.7
CCF
X $ 0.12263
=
42.39
22
Rider GCR Part A
345.7
CCF
X $ 0.35744
=
123.56
23
Rider GCR Part B
345.7
CCF
X $ 0.26532
=
91.71
24
Subtotal
$
314.16
25
Rider FF & Rider TAX
$
314.16
X 0.06408
=
20.13
26
Total
$
334.29
27
28
Customer charge
$
63.50
29
Consumption charge
345.7
CCF
X $ 0.14137
=
48.87
30
Rider GCR Part A
345.7
CCF
X $ 0.35744
=
123.56
31
Rider GCR Part B
345.7
CCF
X $ 0.26532
=
91.71
32
Subtotal
$
327.64
33
Rider FF & Rider TAX
$
327.64
X 0.06408
=
20.99
34
Total
$
348.63
$ 14.34
35
4.29%
W P_J-3.1
Page 1 of 2
Line
No.
36
Rate I (il 4278 MMBTU
37
Customer charge
38
Consumption charge
39
Consumption charge
40
Consumption charge
41
Rider GCR Part A
42
Rider GCR Part B
43
Subtotal
44
Rider FF & Rider TAX
45
Total
46
47
Customer charge
48
Consumption charge
49
Consumption charge
50
Consumption charge
51
Rider GCR Part A
52
Rider GCR Part B
53
Subtotal
54
Rider FF & Rider TAX
55
Total
56
57
Rate T (cD 4278 MMBTU
58
Customer charge
59
Consumption charge
60
Consumption charge
61
Consumption charge
62
Rider GCR Part B
63
Subtotal
64
Rider FF & Rider TAX
65
Total
66
67
Customer charge
68
Consumption charge
69
Consumption charge
70
Consumption charge
71
Rider GCR Part B
72
Subtotal
73
Rider FF & Rider TAX
74
Total
75
ATMOS ENERGY CORP., MID-TEX DIVISION
AVERAGE BILL COMPARISON - BASE RATES
TEST YEAR ENDING DECEMBER 31, 2021
Current
$
1,054.75
1,500
MMBTU
X
$ 0.4330
=
649.50
2,778
MMBTU
X
$ 0.3171
=
880.80
0
MMBTU
X
$ 0.0680
=
-
4,278
MMBTU
X
$ 3.4906
=
14,931.86
4,278
MMBTU
X
$ 0.5485
=
2,346.33
$
19,863.24
$ 19,863.24
X
0.06408
=
1,272.82
$
21,136.06
1,500
MMBTU
X
$ 0.4939
=
2,778
MMBTU
X
$ 0.3617
=
0
MMBTU
X
$ 0.0776
=
4,278
MMBTU
X
$ 3.4906
=
4,278
MMBTU
X
$ 0.5485
=
$ 20,228.23
X
0.06408
=
Current
$
1,054.75
1,500
MMBTU
X
$ 0.4330
=
649.50
2,778
MMBTU
X
$ 0.3171
=
880.80
0
MMBTU
X
$ 0.0680
=
-
4,278
MMBTU
X
$ 0.5485
=
2,346.33
$
4,931.38
$ 4,931.38
X
0.06408
=
316.00
$
5,247.38
1,500
MMBTU
X
$ 0.4939
=
2,778
MMBTU
X
$ 0.3617
=
0
MMBTU
X
$ 0.0776
=
4,278
MMBTU
X
$ 0.5485
=
$ 5,296.37
X
0.06408
=
Proposed Change
$ 1,204.50
740.85
1,004.69
14,931.86
2,346.33
$ 20,228.23
1,296.21
$ 21,524.44 $ 388.38
1.84%
Proposed Change
$ 1,204.50
740.85
1,004.69
2,346.33
$ 5,296.37
339.39
$ 5,635.76 $
388.38
7.40%
W P_J-3.1
Page 2 of 2