Item 6KM E M O R A N D U M
August 26, 2008
To:
Shana Yelverton, City Manager
From:
Sharen Jackson, Finance Director
nd
Subject:
Ordinance No. 945, 2Reading, Approve a negotiated resolution between
the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex
Division (“Atmos Mid-Tex or “The Company”) regarding the company’s
rate review mechanism filing in all cities exercising original jurisdiction;
declaring existing rates to be unreasonable; adopting tariffs that reflect rate
adjustments consistent with the negotiated settlement and finding the rates
to be set by the attached tariffs to be just and reasonable; approving
Atmos’ proof of revenues; adopting a savings clause; determining that this
ordinance was passed in accordance with the requirements of the Texas
Open Meetings Act; declaring an effective date; and requiring delivery of
this ordinance to the company and legal counsel.
Action
Requested:
Approval of Ordinance No. 945.
Background
Information:
The City, along with 150 other cities served by Atmos Energy
Mid-Tex Division ("Atmos"), is a member of the Atmos Cities
Steering Committee ("ACSC").On April 14, 2008, Atmos filed
with the City an application to increase natural gas rates pursuant
to the Rate Review Mechanism ("RRM") tariff. Atmos’ April
RRM filing seeks a $33.5 million rate increase. The City worked
with ACSC to analyze the schedules and evidence offered by
Atmos to support its request to increase rates.
The purpose of the Ordinance is to approve rate tariffs (Attachment
A) that reflect the negotiated rate change pursuant to the RRM
process. The Ordinance also approves Atmos' proof of revenues
(Attachment B), a required part of the RRM filing.
As a result of the negotiations, ACSC was able to reduce the
Company's requested $33.5 million RRM increase by more than 35
percent. Approval of the Ordinance will result in rates that
implement a $20 million increase in Atmos' revenues effective
October 1, 2008. The monthly bill impact for the average
residential customer is $0.81.
During the time that the City has retained original jurisdiction in
this case, consultants working on behalf of ACSC cities have
investigated the support for the Atmos’ requested rate increase.
While the evidence does not support the $33.5 million increase
requested by Atmos, ACSC consultants agree that the Company
can justify an increase in revenues of at least $19.8 million.
A contested case proceeding before the Rail Road Commission on
Atmos’ current application will take several months and cost
ratepayers millions of dollars in rate case expenses and would not
likely produce a request more favorable than that to be produced
by the settlement. The ACSC Executive Committee recommends
that ACSC members take action to approve the ordinance
authorizing new rate tariffs.
Financial
Considerations:
None
Citizen Input/
th
Board Review:
Public Hearing scheduled for September 16.
Legal Review:
Ordinance prepared by ACSC attorneys, Lloyd Gosselink Rochelle
& Townsend, P.C.
Alternatives:
Deny Ordinance
Supporting
Documents:
Ordinance No 945
Tariff (Attachment A)
Proof of Revenues (Attachment B)
Staff
Recommendation:
Approve Ordinance No. 945
ORDINANCE NO. 945
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS, ("CITY") APPROVING A
NEGOTIATED RESOLUTION BETWEEN THE ATMOS
CITIES STEERING COMMITTEE AND ATMOS ENERGY
CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR
"THE COMPANY") REGARDING THE COMPANY'S
RATE REVIEW MECHANISM FILING IN ALL CITIES
EXERCISING ORIGINAL JURISDICTION; DECLARING
EXISTING RATES TO BE UNREASONABLE; ADOPTING
TARIFFS THAT REFLECT RATE ADJUSTMENTS
CONSISTENT WITH THE NEGOTIATED SETTLEMENT
AND FINDING THE RATES TO BE SET BY THE
ATTACHED TARIFFS TO BE JUST AND REASONABLE;
APPROVING ATMOS' PROOF OF REVENUES;
ADOPTING A SAVINGS CLAUSE; DETERMINING THAT
THIS ORDINANCE WAS PASSED IN ACCORDANCE
WITH THE REQUIREMENTS OF THE TEXAS OPEN
MEETINGS ACT; DECLARING AN EFFECTIVE DATE;
AND REQUIRING DELIVERY OF THIS ORDINANCE TO
THE COMPANY AND 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 "the 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 more than 150 similarly situated cities served by Atmos Mid-Tex that have joined
together to facilitate the review and response to natural gas issues affecting rates charged in the
Atmos Mid-Tex service area (such participating cities are referred to herein as "ACSC Cities");
and
WHEREAS, Atmos and ACSC Cities have been in continuing disagreement, dispute, and
litigation over the implementation of GRIP surcharges pursuant to Section 104.301 of the Texas
Utilities Code; and
Atmos RRM Ordinance
1
WHEREAS, as part of the negotiations to resolve Atmos' 2007 rate case, ACSC Cities
and the Company worked collaboratively to develop the Rate Review Mechanism ("RRM") tariff
that allows for an expedited rate review process controlled by Cities as a substitute to the current
GRIP process instituted by the Legislature; and
WHEREAS, the City took action earlier this year to approve a Settlement Agreement
with Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff;
and
WHEREAS, on or about April 14, 2008, Atmos Mid-Tex filed with the City its first
application pursuant to the RRM tariff to increase natural gas rates by approximately $33.5
million, such increase to be effective in every municipality that has adopted the RRM tariff
within its Mid-Tex Division; and
WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a
Negotiation Committee made up of ACSC representatives and assisted by ACSC attorneys and
consultants to resolve issues identified by ACSC in the Company’s RRM filing; and
WHEREAS, the Company has filed evidence that existing rates are unreasonable and
should be changed; and
WHEREAS, independent analysis by ACSC's rate expert concluded that Atmos is able to
justify a rate increase of $19.8 million; and
WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and consultants,
recommends ACSC members approve the attached rate tariffs ("Attachment A" to this
Ordinance) that will increase the Company's revenue requirement by $20 million; and
WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues
("Attachment B" to this Ordinance) are consistent with the negotiated resolution reached by
Atmos RRM Ordinance
2
ACSC Cities (including but not limited to a reduction of the residential customer monthly charge
to $7.00 per month) and are just, reasonable, and in the public interest; and
WHEREAS, it is the intention of the parties that ACSC Cities receive the benefit of any
Settlement Agreement that Atmos enters into with other entities arising out of its RRM or any
associated appeals of a decision entered by the Railroad Commission regarding the Company's
request to increase rates. The ACSC Cities’ acknowledge that the exercise of this right is
conditioned upon the ACSC Cities’ acceptance of all rates, revenues, terms and conditions of any
other Settlement Agreement or associated appeals arising out of the Company’s RRM filing in
toto; and
WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting
rates are, as a whole, is in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, 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 existing rates for natural gas service
provided by Atmos Mid-Tex are unreasonable and new tariffs and Atmos' proof of revenues,
which are attached hereto and incorporated herein as Attachments A and B, are just and
reasonable and are hereby adopted.
Section 3. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
Section 4. 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.
Atmos RRM Ordinance
3
Section 5. 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 6. That if ACSC Cities determine any rates, revenues, terms and conditions, or
benefits resulting from a Final Order or subsequent negotiated settlement approved in any
proceeding addressing the issues raised in Atmos' RRM filing would be more beneficial to the
ACSC Cities than the terms of the attached tariff, then the more favorable rates, revenues, terms
and conditions, or benefits shall additionally accrue to the ACSC Cities. Exercise of this right is
conditioned upon ACSC Cities' acceptance of all rates, revenues, terms and conditions of any
other Settlement Agreement or associated appeals arising out of the Company’s RRM filing in
toto.
Section 8. That this Ordinance shall become effective from and after its passage with
rates authorized by attached Tariffs to be effective for customer bills delivered on or after
October 1, 2008.
Section 9. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of David
Park, Vice President Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at
Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED AND APPROVED this __________ day of ___________________, 2008.
_________________________________
Mayor
ATTEST;
Atmos RRM Ordinance
4
__________________________________
City Secretary
APPROVED AS TO FORM:
___________________________________
City Attorney
Atmos RRM Ordinance
5
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19843
REVISION NO: 0
RATE SCHEDULE:
R - RESIDENTIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 23
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 Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 7.00 per month
Commodity Charge - All Mcf
$2.2410 per Mcf
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.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
/ T MOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19844
REVISION NO: 0
RATE SCHEDULE:
C - COMMERCIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10101/2008
PAGE: 24
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 3,000 Mcf.
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 Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 13.50 per month
Commodity Charge - All Mcf
$ 0.9809 per Mcf
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.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19842
REVISION NO: 0
RATE SCHEDULE:
I - INDUSTRIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 25
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
$ 425.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2733 per MMBtu
Next 3,500 MMBtu
$ 0.1993 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0427 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.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
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."
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19842
REVISION NO: 0
RATE SCHEDULE:
I - INDUSTRIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 26
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
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19845
REVISION NO: 0
RATE SCHEDULE:
T - TRANSPORTATION
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 27
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
$ 425.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2733 per MMBtu
Next 3,500 MMBtu
$ 0.1993 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0427 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19845
REVISION NO: 0
RATE SCHEDULE:
T - TRANSPORTATION
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 28
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.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR - GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 40
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated
in Section (b) below.
The amount due for gas cost (Section (a)) is determined by multiplying the Gas Cost Recovery Factor
(GCRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C,
monthly volume will be calculated on a Mcf basis. For Customers receiving service under Rate I,
monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to
recover actual gas costs.
The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor
(PCF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C,
monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I and
Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as
necessary to recover actual gas costs.
(a) Gas Cost
Method of Calculation
The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF),
as determined with the following formula:
GCRF = Estimated Gas Cost Factor (EGCF) + Reconciliation Factor (RF) + Taxes (TXS)
EGCF = Estimated cost of gas, including lost and unaccounted for gas attributed to residential,
commercial, and industrial sales, and any reconciliation balance of unrecovered gas costs, divided
by the estimated total residential, commercial, and industrial sales. Lost and unaccounted for gas is
limited to 5%.
RF = Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of
interest over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed
over that same twelve-month period by the estimated total residential, commercial, and industrial
sales for the succeeding October through June billing months. The interest rate to be used is the
annual interest rate published by the PUC every December. The interest rate of 2008 is 4.69%.
Actual Gas Cost Incurred = The sum of the costs booked in Atmos Energy Corp., Mid-Tex
Division account numbers 800 through 813 and 858 of the FERC Uniform System of Accounts,
including the net impact of injecting and withdrawing gas from storage. Also includes a credit or
debit for any out-of-period adjustments or unusual or nonrecurring costs typically considered gas
costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees.
Actual Gas Cost Billed = EGCF multiplied by the monthly volumes billed to Residential,
Commercial and Industrial Sales customers, less the total amount of gas cost determined to have
been uncollectible and written off which remain unpaid for each month of the reconciliation period.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR - GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 41
Any amount remaining in the reconciliation balance after the conclusion of the period of
amortization will be maintained in the reconciliation balance and included in the collection of the
next RF.
Atmos Energy shall file annual reports with the Commission, providing by month the following
amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off,
Gas Cost Collected and Margin Collected.
TXS = Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by
the estimated total residential, commercial, and industrial sales.
ADJ = Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the
estimated total residential, commercial, and industrial sales is to be included as a separate line item
surcharge.
(b) Pipeline Cost
Method of Calculation
Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class
listed below. The formula for the PCF is:
PCF = PP / S, where:
PP = (P - A) x D, where:
P = Estimated monthly cost of pipeline service calculated pursuant to Rate CGS
D = Pipeline service allocation factor for the rate class as approved in the Company's most recent
rate case, as follows:
Pipeline Cost Rate Class
Allocation Factor D
Rate R - Residential Service
.634698
Rate C - Commercial Service
.302824
Rate I - Industrial Service and Rate T - Transportation Service
.062478
A = Adjustment applied in the current month to correct for the difference between the actual and
estimated pipeline cost revenue of the second preceding month, calculated by the formula:
A = R - (C - A2), where:
R = Actual revenue received from the application of the PP component in the second preceding
month.
C = Actual pipeline costs for the second preceding month.
A2 = The adjustment (A) applied to the PP component in the second preceding month.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR - GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 42
S = Estimated Mcf or MMBtu for the rate class for the current billing month.
The PCF is calculated to the nearest 0.0001 cent.
The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the appropriate
PCF. The Pipeline Cost is determined to the nearest whole cent.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
CEE - CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 58
Purpose
Atmos Energy Mid-Tex is proposing to institute a complete Conservation & Energy Efficiency program
which will offer assistance to qualified customer segments in reducing energy consumption and lowering
energy utility bills. The proposal is one where Atmos Energy shareholders will fund a percentage of the
allowable expenses incurred annually, with a customer rate component providing the remainder of the
funding. Following is a high-level, concept summary of the proposal. Atmos Energy Mid-Tex Division
proposes to work with the communities it serves to develop the details of a new tariff and programs
addressing conservation and energy efficiency.
Synopsis:
Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos
Mid-Tex. Qualified Customers will receive up to two hundred dollars ($200.00) worth of caulking,
weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving
devices such as clock-thermostats, set-back devices ("covered items") from approved suppliers / retailers.
Company will undertake efforts to enlist support from community groups, including its own Employee
Action Program, to assist customers with installation. If it is determined that professional installation
capabilities are necessary, the parties will agree on labor assistance amounts.
Eligibility
Low Income - Low-income rate-payers that qualify for heating bill assistance through LIHEAP
agencies and all agencies that distribute Atmos "Share the Warmth" funds. Agencies that allocate
assistance funds denote customer as Low Income, a status that lasts for one year.
Senior Citizen - Primary account holder can request eligibility through ATM call center or web-site.
Customer provides primary SSN which is verified through Social Security Administration. And account
holder that is or turns 65 years old in that year becomes eligible.
Funding
Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dollars ($1,000,000.00) per year. It is proposed that the program operate on an October 1 through
September 30 year, with benefits being capped at the two million dollar level for the initial program period.
Administration:
A third-party administrator will coordinate qualification of customers, voucher distribution, subsequent
verification and reimbursement of eligible expenditures and general program administration. Program
administration expenses will be funded from the annual approved budget.
Audits will be provided all interested parties within 120 days of the end of each program year to determine
effectiveness.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID.-i EX DIVISION
REVISION NO: 0
RIDER:
CEE - CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 59
Report
Atmos shall file an annual report detailing cost to administer the program with details of the amounts paid
out of program for energy conversation assistance. The report shall also detail number of applicants,
number rejected and accepted and reason rejected. The report shall be filed with the Gas Service
Director.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
FF - FRANCHISE FEE ADJUSTMENT
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10101/2008
PAGE: 43
Application
Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a
municipal franchise fee upon Company for the Gas Service provided to Customer. Franchise Fees to be
assessed solely to customers within the municipal limits. This does not apply to Environs customers.
Monthly Adjustment
Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees
payable for the Gas Service provided to Customer by Company. Municipal franchise fees are determined
by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees.
From time to time, Company will make further adjustments to Customer's bill to account for any over- or
under-recovery of municipal franchise fees by Company.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT A
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER:
Rider WNA - Weather Normalization Adjustment
APPLICABLE TO:
Entire System (except Environs areas
and the City of Dallas)
REVISION:
DATE:
EFFECTIVE DATE:
11101/2008
PAGE: 1 OF 2
RIDER WNA - Weather Normalization Adjustment
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) 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 Mcf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
= 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 Mcf
Ri = base rate of temperature sensitive sales for the ith schedule or
classification approved by the entity exercising original jurisdiction.
HSFi = heat sensitive factor for the ith schedule or classification calculated as the
slope of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM filing.
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 calculated as the y-
intercept of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM filing.
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAF; x q;j
ATTACHMENT A
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID-TEX DIVISION
RATE SCHEDULE:
Rate WNA - Weather Normalization Adjustment
APPLICABLE TO:
Entire System (except Environs areas
and the City of Dallas)
REVISION:
DATE:
EFFECTIVE DATE:
11101/2008
PAGE: 2 OF 2
Where q;j is the relevant sales quantity for the jth customer in ith rate schedule.
Filings with Entities Exercising Original Jurisdiction
As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather
Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather
Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such
Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer
bills, with customer information deleted, for each rate schedule or classification to which the WNA was
applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA
application, such data will be provided by the Company as part of the annual RRM filing.
If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base Use/Heat Sensitivity (HSF) Factors
Residential Commercial
Base use HSF Base use HSF
Weather Station Mcf Mcf/HDD Mcf Mcf/HDD
Abilene
1.27
.0130
10.93
.0638
Austin
1.29
.0133
18.47
.0641
Dallas
1.79
.0186
20.83
.0878
Waco
1.30
.0141
11.41
.0617
Wichita
Falls
1.35
.0143
11.62
.0540
Sample WNAF~ Calculation:
.1533 per Mcf =
Where
i =
Ri =
HSFi =
NDD =
ADD =
BLi =
(.0131
1.2267 x
(1.14
Residential Single Block Rate Schedule
x (30-17) )
+ (.0131 x 17) )
1.2267 per MCF (Rate R - Final Order GUD No. 9670)
.0131 (Residential -Abilene Area)
30 HDD (Simple ten-year average of Actual HDD for Abilene Area - 9/15/06
-10/14/06)
17 HDD (Actual HDD for Abilene Area - 9/15/06 - 10/14/06)
1.14 Mcf (Residential - Abilene Area)
ATTACHMENT B
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line Description Total Reference
(a) (b) (c)
Rate R
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Rate Characteristics:
Customer Charge
Consumption Charge ($/Mcf)
2007 RRM True-up ($/Mcf)
Rider GCR Part A
Rider GCR Part B
Billing Units (1):
Bills
Total MCF
Proposed Revenue:
Customer Charge
Consumption Charge
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
RRM Settlement
Agreement,
$7.00 Pg 2, Item 5
$2.1600
$0.0810
$8.1244
$0.6243
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
17,069,679
78,708,921
$ 119,487,753
176,385,175
$ 295,872,928
639,460,135
49,140,231
$ 984,473,295
59,244,614
Total Proposed Revenue- Rate R $ 1,043,717,909
Note 1: See Billing Determinants Study for details.
WP-J-1.1
WP-J-1.1
ATTACHMENT B
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line Description Total Reference
(a) (b) (c)
Rate C
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Rate Characteristics:
Customer Charge
Consumption Charge ($/Mcf)
2007 RRM True-up ($/Mcf)
Rider GCR Part A
Rider GCR Part B
Billing Units (1):
Bills
Total MCF
Proposed Revenue:
Customer Charge
Consumption Charge
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
Total Proposed Revenue- Rate C
RRM Settlement
Agreement,
$13.50 Pg 2, Item 5
$0.9442
$0.0367
$8.1244
$0.5228
1,434,516
50,233,642
$ 19,365,966
49,273,373
$ 68,639,339
408,116, 524
26,261,046
$ 503, 016, 909
30,271,052
533,287,962
Note 1: See Billing Determinants Study for details.
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
WP J-1.2
WP-J-1.2
ATTACHMENT B
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line Description Total Reference
(a) (b) (c)
Rate I &T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Rate Characteristics:
Customer Charge $
425.00
Settlement Allocation
Block 1 ($/MMBTU)
$0.2352
Settlement Allocation
Block 2 ($/MMBTU)
$0.1715
Settlement Allocation
Block 3 ($/MMBTU)
$0.0367
Settlement Allocation
2007 RRM True-up ($/MMBTU):
Settlement Allocation
Block 1 ($/MMBTU)
$0.0381
Block 2 ($/MMBTU)
$0.0278
Block 3 ($/MMBTU)
$0.0060
Rider GCR Part A
$8.1244
Schedule H
Rider GCR Part B
$0.2938
Schedule I
Consumption Characteristics:
Block 1 (First 1,500 MMBTU)
0.23502
(1)
Block 2 (Next 3,500 MMBTU)
0.26655
(1)
Block 3 (Over 5,000 MMBTU)
0.49843
(1)
Billinq Units (1):
Bills
10,052
WP_J-1
Block 1
9,522,217
WP_J-1
Block 2
10,799,921
WP_J-1
Block 3
20,195,218
WP_J-1
Total MMBTU
40,517,356
Sales Volumes
2,331,063
WP_J-1
Prooosed Revenue:
Customer Charge
Block 1
Block 2
Block 3
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
$ 4,272,100
2,602,422
2,152,424
862,336
$ 9,889,282
18,494,542
11,902,411
$ 40,286,235
2,424,385
Total Proposed Revenue- Rate I&T $ 42,710,620
Note 1: See Billing Determinants Study for details.