26-026 ResolutionRESOLUTION NO. 26-026
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 2026 RATE REVIEW
MECHANISM FILING; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE
ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED
SETTLEMENT; FINDING THE RATES TO BE SET BY THE
ATTACHED SETTLEMENT TARIFFS TO BE JUST AND
REASONABLE AND IN THE PUBLIC INTEREST; APPROVING
AN ATTACHMENT ESTABLISHING A BENCHMARK FOR
PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING
THE COMP ANY 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 COMP ANY 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 , 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 proce ss 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 m a rate ordinance m
2018;and
WHEREAS , on about April 1, 2026, Atmos Mid-Tex filed it s 2026 RRM rate request with
ACSC Cities based on a test year ending December 31, 2026 ; and
WHEREAS, ACSC coordinated its re view of the Atmos Mid-Tex 2026 RRM filing
through its Executive Committee, assisted by ACSC 's attorneys and consultants , to resolve issues
identified in the Company 's RRM filin g; and
WHEREAS , the Executive Committee , as well as ACSC 's counsel and consultants ,
recommend that ACSC Cities approve an increa se in base rates for Atmos Mid-Tex of $260.5
million on a system-wide basis with an Effective Date of October 1, 2026; and
WHEREAS , ACSC agrees that Atmos ' plant-in-service is rea so nabl e; and
WHEREAS , with the exception of approved plant-in-service , ACSC is not foreclosed from
future reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS , the attached tariffs (Attachment 1) implementing new rates are consistent
with the recommendation of the ACSC Executive Committee , are agreed to by the Company, and
are just, reasonable , and in the public interest ; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Attachment 2); and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC 's reasonable expenses
associated with RRM applications.
2
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 $260.5 million on a
system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the
rates , operations , and services offered by Atmos Mid-Tex within the municipal limits arising from
Atmos Mid-Tex 's 2026 RRM filing , is in the public interest, and is consistent with the City 's
authority under Section 103.001 of the Texas Utilities Code .
Section 3. That despite finding Atmos Mid-Tex 's plant-in-service to be reasonable , ACSC
is not foreclosed in future cases from evaluating the reasonableness of costs associated with
incidents involving leaks of natural gas.
Section 4. That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable . The new tariffs attached hereto and incorporated herein as Attachment 1, are just
and reasonable , and are designed to allow Atmos Mid-Tex to recover annually an additional $260 .5
million on a system-wide basis , over the amount allowed under currently approved rates. Such
tariffs are hereby adopted .
Section 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex 's next RRM filing shall be as set forth on Attachment 2 , attached hereto and
incorporated herein.
Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Compan y's 2026 RRM filing.
3
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 l , 2026.
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 Gosse link Rochelle & Townsend, P .C., 816 Congress A venue ,
Suite 1900 , Austin , Texas 78701.
4
DULY PASSED AND APPROVED BY THE CITY COlJNC[L OF THE CITY OF
~ , TEXAS, BY A VOTE OF 1 TO D , ON THIS THE /If
DAY OF ust-, 2026.
~[/\_ VlAd
Mayor
ATTEST:
APPROVED AS TO FORM:
{Wt/4il!b=
2557/40 /9262989 5
Exhibit A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RA TE SCHEDULE: R-RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE: Bills Rendered on or after 10/01/2026 I
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 $ 24 .35 per month
Rider CEE Surcharge $ 0.05 per month 1
Total Customer Charge $ 24.40 per month
Commod ity Charge -All Ccf $ 1 . 03839 per Ccf
Gas Cost Recovery : Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respect ively , of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA .
Franch ise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Ride r
FF . Rider FF is only applicable to custome rs inside the corporate limits of any incorporated
municipality .
Tax Adjustment: Plus an amount fo r ta x calculated in accordance with Rider TAX .
Surcharges : Plus an amount for surcharges calculated in accordance with the applicab le rider(s).
Agreement
An Agreement for Gas Service may be required .
Notice
Serv ice hereunder and the rates for serv ices provided are subject to the orders of regulatory bodies
having j urisdiction and to the Company 's Tariff for Gas Service .
'Re ference Rider CEE -Co nservat io n and Energy Efficie ncy as appro ved in G UO 19196 . Surcha rge billi ng effective J uly 1, 2026 .
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RA TE SCHEDULE: C -COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE: Bills Rendered on or after 10/01/2026 l
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 $ 115 .50 per month
Rider CEE Surcharge $ 0.00 per month 1
Total Customer Charge $ 115 .50 per month
Commodity Charge -All Ccf $ 0.277 84 per Ccf
Gas Cost Recovery : Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively , of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF . Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality .
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX .
Surcharges : Plus an amount for surcharges calculated in accordance with the applicable rider (s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company 's Tariff for Gas Service.
Presumption of Plant Protection Level
For service under this Rate Schedule , plant protection volumes are presumed to be 10 % of normal ,
regular , historical usage as reasonably calculated by the Company in its sole discretion . If a customer
believes it needs to be modeled at an alternative plant protection volume , it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
1 Reference Rider CEE -Co nservation and Energy Efficiency as approved in GUO 19196 . Surcharge billing effective July 1, 2026 .
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RA TE SCHEDULE: I -INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026 l
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 MMBtu per day
for all natural gas prov ided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 200 MMBtu per day will be provided at
Company's sole option and wi ll 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 add ing the following Customer and MMBtu charges to the
amounts due under the riders listed below :
Charge Amount
Customer Charge per Meter $ 2 ,304 .50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5 ,000 MMBtu $ 0.1505 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively , of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance w ith Ride r
FF . Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality .
Tax Adjustment: Plus an amount for ta x 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 po int listed in Platts Gas Daily published for t he
applicable Gas Day in the table entitled "Daily Price Survey ."
Replacement Index
In the event the "midpoint" or "common " pr ice for the Katy point listed in Platts Gas Daily in the t able
entitled "Daily Price Survey " is no longer published , Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritat ive by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RA TE SCHEDULE: I -INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE : Bills Rendered on or after 10/01/2026 I
Agreement
An Agreement for Gas Serv ice 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 rece ive service under Rate I , Customer must have the type of meter required by Company .
Customer must pay Company all costs associated with the acquisition and installation of the meter .
Presumption of Plant Protection Level
For service under this Rate Schedule , plant protection volumes are presumed to be 10 % of normal ,
regular , historical usage as reasonably calculated by the Company in its sole discretion . If a customer
bel ieves it needs to be modeled at an alternative plant protect ion volume , it should contact the company
at mdtx-div-plantprotection@atmosenergy.com .
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RA TE SCHEDULE: T -TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026 I
Application
Applicable , in the event that Company has entered into a Transportation Agreement , to a customer
directly connected to the Atmos Energy Corp ., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility .
This tariff is not available to customers with a maximum da ily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10 % or less . Load factor is calculated as follows : annual usage/ (maximum
daily connected demand X 365 ). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T .
Type of Service
Company 's receipt and delivery of all gas quantities under the applicable Transportat ion Agreement will be
on a wholly interruptible bas is subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer , then Customer may elect , at the reasonab le discretion
of Company , to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities , plant personnel , or the
public when such protection cannot be achieved through the use of an alternate fuel. Where service of the
type desired by Customer is not already available at the Point of Delivery , additional charges and special
contract arrangements between Company and Customer may be required prior to service being
furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below :
Charge Amount
Customer Charge per Meter $ 2 ,304 .50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance w ith 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 ins ide the corporate limits of any inco rporated
mun ic ipality .
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX .
Surcharges : Plus an amount for surcha rges calculated in accordance w ith the applicable rider (s).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T -TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE: Bills Rendered on or after 10/01/2026 I
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 w ith multiple Transportation Agreements for the purposes of such fees .
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0 .10 per MM Btu , or (ii) 150% of the difference per MM Btu
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 .
Overpull Fee
Upon notification by Company of an event of interruption of Customer's deliveries , Customer will , for each
MMBtu delivered in excess of the stated level of interruption , pay Company 200% of the midpoint price for
the Katy point listed in 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: SUR -SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026 I
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as author ized
by the state or any governmental entity , a municipality , or a regulatory authority pursuant to any statute ,
ordinance , order , rule , contract , or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute , ordinance , order , rule , contract ,
or agreement.
FASB ASC 740-10 (Fin48) Refund
Applicable to Customers taking service under Rate Schedules R -Residential , C -Commercial , I -
Industrial and T -Transportation .
To ensure that gas utility customers receive the benefit associated with the changes in the Company 's
Uncertain Tax Positions ("UTPs ") arising from recognition of Texas Margin Tax returns .
The decrease shall be calculated as follows :
Beginning with implementation of rates from the negotiated RRM Tariff , and annually thereafter , the
portion of UTP liabilities identified in Schedule FIN48 -1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUO No . 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year's calculation will
include a true-up (+ or -) due to account for over/under collections . Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is requ ired to give effect to the amount to be refunded to
customers . However, any amount refunded to customers shall be fully subject to rev iew for
reasonableness and accuracy in the gas utility 's next statement of intent proceeding with the Railroad
Commission of Texas , and if applicable , the gas ut ility shall be required to reconcile any discrepancies .
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R -Residential , C -Commercial , I -Industrial and T -Transportation customer's
monthly bill in each month for a 12 -month period . The refund amount by month by Rate Schedule is
shown in the table below :
Rate Schedules Rate
Rate R -Residential Sales $(0 .14 )
Rate C -Commercial Sales $ (0.49 )
Rate I -Industrial Sales $(10.47)
Rate T -Transportation $ (10.4 7)
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR -SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE: Bills Rendered on or after 10/01/2026 I
Unprotected Excess Deferred Income Tax Amortization
The allocated RRM Cities balance of the Unprotected portion of the Excess Deferred Income Taxes
("EDIT") remaining afte r implementation of rates at October 1, 2026 shall be applied to each Rate
Schedules R -Residential , C -Commercial , I -Industrial and T -Transportation customer's month ly bill
for a one-month per iod . The refund amount by Rate Schedule is shown in the table below :
Rate Schedules Rate
Rate R -Residential Sales $ (4.45 )
Rate C -Commercial Sales $ (14 .80 )
Rate I -Industrial Sales $ (319.02 )
Rate T -Transportation $ (319 .02 )
Maximum Allowable Operating Pressure ("MAOP") Hydrostatic Testing Cost Recovery
The allocated RRM Cities balance of the MAOP Hydrostatic Testing Cost as of December 31 , 2025 is to
be recovered through a monthly rate . This monthly rate shall be applied to each Rate Schedules R -
Residential , C -Commercial , I -Industrial and T -Transportation customer 's monthly bill for
approx imately twelve (12) months or until all approved costs are recovered from the applicable customer
classes . The monthly recovery rate by Rate Schedule is shown in the table below :
Rate Schedules Rate
Rate R -Residential Sales $ 0.30
Rate C -Commercial Sales $ 0.98
Rate I -Industrial Sales $ 21 .17
Rate T -Transportation $ 21.17
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO : ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DA TE : Bills Rendered on or after 10/01/2026 I
Provisions for Adjustment
The Commodity Charge per Ccf (1 00 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 Weathe r Normalization Adjustment shall apply to all temperature
sensitive resident ia l 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 Normal ization Adjus tment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula :
WNAFi =
Where
=
WNAFi =
R I =
HSFi =
NOD =
ADD =
Bli =
R-I
(HSF i
(Bli
X (NOD -ADD ))
+ (HSFi x ADD) )
any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
Weather Normalizat ion Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification .
heat sensitive factor for the it h schedule or classification divided by the
average bill count in that class
billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days .
billing cycle actual heating degree days .
base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as :
WNA ;= WNAF ; x q ;i
Where q ;i 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 DA TE : Bills Rendered on or after 10/01/2026 I
Base Use/Heat Use Factors
Residential Commerc ial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 9 .78 0 .1448 91 .89 0.8018
Austin 9 .07 0.1318 213 .26 0.9418
Dallas 12 .87 0.1937 192.49 1.1269
Waco 9 .39 0.1261 159 .17 0.8068
Wichita 10 .61 0.1364 133 .65 0.6965
Falls
Weather Normalization Adjustment (WNA) Report
On or before June 1 of each year, the company posts on its website at
www.atmosenergy .com/MTXtariffs , in Excel format , a Weather Normalization Adjustment (WNA ) Report
to show how the company calculated its WNAs factor during the preceding winter season . Additionally ,
on or before June 1 of each year , the company files one hard copy and an Excel version of the WNA
Report with the Railroad Commission of Texas ' Gas Services Division , addressed to the Director of that
Division .
Line
No .
2
3
4
5
6
7
8
9
10
11
12
13
Descript ion
(a)
Proposed Benefits Benchmark -
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2025
Shared Services
Post-
Pension Employment Pension
Account Plan Benefit Plan Account Plan
(b) (c ) (d)
Fiscal Year 2026 Willis Towers Watson Report as adjusted (1) (2) (3) $ 200 ,382 $ (490 ,197 ) $ 951 ,536
Allocation Factor 46 .66 % 46.66 % 87 .00 %
Proposed Benefits Benchmark Costs A ll ocated to Mid-Tex (Ln 1 x Ln 2) $ 93 ,490 $ (228 ,707 ) $ 827 ,882
O&M and Capital All ocation Factor 100 .00 % 100.00% 100.00%
Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4) $ 93 ,490 $ (228 ,707) $ 827 ,882
O&M Expense Factor (WP _F-2 .3 , Ln 2) 80 .27 % 80 .27 % 36.19 %
Summary of Costs to Approve (1):
Total Pension Account Plan $ 75 ,047 $ 299 ,646
Total Post-Emp loyment Benefit Plan $ (183 ,588 )
Tota l Supplemental Executive Benefit Plan
Total (Ln 10 + Ln 11 + Ln 12 ) $ 75 ,047 $ (183 ,588 ) $ 299 ,646
Exhibit B
Mid-Tex Direct
Post-Supplemental
I
Employment Executive Benefit Adjustment
Benefit Plan Plan Total
(e) (f) (g )
$ (3,288 ,240 ) $ 72 ,926
87.00 % 100 .00 %
$ (2 ,860 ,928 ) $ 72 ,926
100.00 % 100.00%
$ (2,860 ,928) $ 72 ,926 $ (2 ,095 ,337 )
36 .19 % 8 .73 %
$ 37 4 ,69 3
$ (1,035 ,492 ) (1,219 ,080 )
$ 6 ,367 6 ,367
$ (1,035 ,492) $ 6 ,367 $ (838 ,020 )
Ex hibit C
ATMOS ENERGY CORP., MID-TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
AVERAGE BILL COMPAR ISON -BASE RATES
TEST YEAR ENDING DECEMBER 31, 2025
Average Current Proposed Current Proposed Amount Percent
Line No . Description Volumes Rates Rates Average Bill Average Bill Change Change
(a) (b) (c) (d ) (e ) (f ) (g ) (h)
1 Rate R @ 40. 7 Ccf
2 Base Rates :
3 Customer Charge $ 23 .65 $ 24.35 $ 23 .65 $ 24 .35 $ 0 .70
4 Consumption Charge (Ccf) 40 .7 $ 0 .74748 $ 1.03839 30.44 42 .29 11 .85
5 Tota l Base Rates $ 54 .0 9 $ 66 .64 $ 12.55 23.20 %
6
7 Gas Cost:
8 Rider GCR Part A (Ccf) 40 .7 $ 0 .26375 $ 0 .26375 $ 10.74 $ 10 .74 $
9 Rider GCR Part B (Ccf) 40 .7 $ 0 .58642 $ 0.58642 23.88 23 .88
10 Tota l Gas Cost $ 34.62 $ 34 .62 $ 0.00 %
11
12 Total Base wi th Gas Cost $ 88 .71 $ 101 .26 $ 12.55
13 Rider FF & Rider TAX 0.06509 0 .06509 5.77 6 .59 0 .82 14 .15%
14
15 Total Res idential Average Bill $ 94.4 8 $ 107.85 $ 13.37 14 .15%
16
17 Rate C @ 372.6 Ccf
18 Base Rates :
19 Customer Charge $ 94 .00 $ 115 .50 $ 94 .00 $ 115.50 $ 21.50
20 Consumption Charge (Ccf) 372 .6 $ 0 .22261 $ 0 .2778 4 82 .95 103 .53 20 .58
21 Total Base Rates $ 176.95 $ 219 .03 $ 42 .08 23 .78 %
22
23 Gas Cost:
24 Rider GC R Part A 372.6 $ 0 .26375 $ 0 .26375 $ 98 .28 $ 98 .28 $
25 Rider GC R Part B 372.6 $ 0.40258 $ 0.40258 150 .02 150 .02
26 Total Gas Cost $ 24 8 .30 $ 248 .30 $ 0.00 %
27
28 T otal Ba se wit h Gas Cost $ 425 .25 $ 467 .33 $ 42 .08
29 Rider FF & Rider TAX 0.06509 0 .06509 27 .68 30.42 2.74 9.90 %
30
31 Total Commercial Average Bill $ 452.93 $ 497.75 $ 44.82 9.90 %
32
ATMOS ENERGY CORP., MID -TEX DIVISION
MID-TEX RATE REVIEW MECHANISM
AVERAGE BILL COMPARISON -BASE RATES
TEST YEAR ENDING DECEMBER 31 , 2025
Average Current Proposed Current Proposed Amount Percent
Line No. Description Volumes Rates Rates Average Bill Average Bill Change Change
(a) (b) (c) (d) (e) (f) (g) (h)
33 Rate I at 1263 MMBTU
34 Base Rates :
35 Customer Charge $1 ,848 .7 5 $ 2,304 .50 $ 1 ,848 .75 $ 2 ,304 .50 $ 455.75
36 Block 1 -Consumption Charge (MM Bt u) 1,263 $ 0 .7678 $ 0.9582 969 .87 1,210.38 240 .51
37 Block 2 -Consumption Charge (MM Bt u) $ 0 .5623 $ 0 .7018
38 Block 3 -Consumption Charge (MM Bt u) $ 0.1206 $ 0.1505
39 Tota l Base Rates 1,263 $ 2 ,818 .62 $ 3 ,514 .88 $ 696 .26 24.70%
40
41 Gas Cost:
42 Rider GCR Part A (MM Btu ) 1 ,263 $ 2.63750 $ 2.63750 $ 3 ,331.65 $ 3,331 .65 $
43 Rider GCR Part B (MM Btu ) 1 ,263 $ 0 .90813 $ 0 .90813 1 ,147.13 1,147 .13
44 Total Gas Cost $ 4,478.78 $ 4,4 78 .78 $ 0.00 %
45
46 Total Base with Gas Cost $ 7 ,297.41 $ 7,993 .67 $ 696 .26
47 Rider FF and Rider TAX 0.06509 0.06509 475 .01 520.33 45 .32 9.54 %
48
49 Total Industrial Average Bill $ 7 ,772.42 $ 8,514.00 $ 741.58 9.54 %
50
51 Rate T at 4935 MMBTU
52 Base Rates :
53 Customer Charge $1 ,848 .75 $ 2 ,304 .50 $ 1 ,848 .75 $ 2 ,304.50 $ 455 .75
54 Block 1 -Consumption Charge (MM Btu ) 1,500 $ 0 .7678 $ 0.9582 1 ,151 .70 1,437.30 285 .60
55 Block 2 -Consumption Charge (MM Btu ) 3,435 $ 0 .5623 $ 0 .7018 1,931.41 2,410 .57 479.16
56 Block 3 -Consumption Charge (MM Btu ) $ 0 .1206 $ 0.1505
57 Total Base Rates 4 ,935 $ 4 ,931 .86 $ 6 ,152.37 $ 1,220.51 24 .75 %
58
59 Gas Cost:
60 Rider GCR Part B (MM Btu) 4 ,935 $ 0.90813 $ 0 .90813 $ 4,481.46 $ 4,481.46 $
61 Total Gas Cost $ 4,481.46 $ 4,481.46 $ 0.00 %
62
63 Total Base with Gas Cost $ 9,413.33 $ 10 ,633 .84 $ 1,220 .51
64 Rider FF and Rider TAX 0 .06509 0 .06509 612 .74 692.19 79.45 12.97%
65
66 Total Transportation Average Bill $ 10 ,026.07 $ 11,326.02 $ 1,299 .96 12 .97 %