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Item 4H Item 4H M E M O R A N D U M May 26, 2015 To: Shana Yelverton, City Manager From: Sharen Jackson, Chief Financial Officer Subject:Resolution No. 15-032, Approving a negotiated settlement between the Atmos Cities Steering Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2014 and 2015 rate review mechanism filings; approving a settlement agreement with attached rate tariffs and proof of revenues; declaring existing rates to be unreasonable; adopting tariffs that reflectrate adjustments consistent with the negotiated settlement; finding the rates to be set by the settlement tariffs to be just and reasonable and in the public interest; requiring the company to reimburse 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. Action Requested: Approval of Resolution No. 15-032 Background Information: The City, along with over 160 other cities served by Atmos, is a member of the Atmos Cities Steering Committee (“ACSC”). InFebruary 2014,Atmos filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism (“RRM”) tariff. The filing sought a $45.7 million rate increasesystem-wide.The estimated base rate impact for a residential customer would have been an increase of 9.41%.As in previous years, ACSC attempted to reach a settlement with Atmos but both parties weretoo far apart in their positions to reach a compromise. On the recommendation of the ACSC Executive Committee and ACSC’s legal counsel, City Council adopted Resolution 14- 029 denying the requested rate increase. Atmos appealed the Cities denial to the Railroad Commission of Texas (“Commission”), and revised its requested increase to $43.8 million. A hearing was held on Atmos’ appeal on September 3, 2014. On April 28, 2015, the Commission’s Hearings Examiner issued a Proposal for Decision (“PFD”) in Atmos’ appeal of the Cities denial of the Page 2of 3 2014 rate increase. This PFD was not favorable to ACSC, but did recommend a reduction of approximately $860,000 to Atmos’ adjusted 2014 filing. While the parties were waiting for the PFD from the Hearings Examiner in the appeal of the 2014 filing, On February 27, 2015, Atmos filed another rate increase request, seeking additional revenues in the amount of $28.762 million.The City worked with ACSC to analyze the schedules and evidence offered by Atmos to support its 2015 request to increase rates. Resolution 15-032 and the attachments are the results of negotiation between the ACSC Executive Committee and Atmos to resolve issues raised during the review and evaluation of Atmos filing. The following summarizes the recommended settlement agreement: requires Atmos to abate its appeal of the City’s rejection of the 2014 rate increase; requires Atmos to give the City the benefit of the adjustments tothe 2014 rate increase recommended by the PFD; approves rates that will increase Atmos’ revenues by $65.7 million which is $8.7 million less than original requested by Atmosin the 2014 and 2015 rate request; monthly residential customer charge will be o $18.60 consumption charge will increase .01112 per o Ccf. typical residential customer consuming 60 Ccf will see a monthly increase of $1.14(about a 1.59% increase in the base bill) typical commercial customer will see an increase of $2.69 or 0.96% The ACSC Executive Committee,ACSC legal counsel and consultants recommend that all cities adopt theResolution approving the negotiated Settlement Agreement resolving both the 2014 and the 2015 filings and implementing the rate change. Financial Considerations: None Page 3of 3 Strategic Link: B2: Collaborate with select partners to implement service solutions Citizen Input/ Board Review: None required Legal Review: Lloyd Gosselink Rochelle & Townsend, P.C. prepared the resolution. Alternatives: Deny the resolution which would result in another contested case hearing on appeal of the 2015 filing Supporting Documents: Resolution No. 15-032 Settlement Agreement (Attachment A) Proof of Revenues (Attachment B) Rate Schedule-New Tariff (Attachment C) Staff Recommendation: Approval of Resolution No. 15-032 RESOLUTIONNO. 15-032 ANRESOLUTIONOF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, APPROVING A NEGOTIATED SETTLEMENTBETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC”)AND ATMOS ENERGY CORP., MID- TEXDIVISION REGARDING THE COMPANY’S 2014 AND 2015 RATE REVIEW MECHANISM FILINGS;APPROVING A SETTLEMENT AGREEMENTWITH ATTACHED RATE TARIFFS AND PROOF OFREVENUES; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITHTHE NEGOTIATED SETTLEMENT;FINDING THE RATES TO BE SET BY THE SETTLEMENTTARIFFS TO BE JUST AND REASONABLEAND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE ACSC’SREASONABLE RATEMAKING EXPENSES;DETERMINING THAT THIS RESOLUTIONWAS 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’SLEGAL COUNSEL. WHEREAS, the City of Southlake, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-TexDivision (“AtmosMid-Tex” or “Company”), and a regulatory authority with an interest in the rates and charges of Atmos; and WHEREAS, the City is a member of the AtmosCities 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-Texservice area; and WHEREAS, ACSCand the Company worked collaboratively to develop a new Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process byACSC Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”)process institutedby 4764616.1 1 the Legislature, and that will establish rates for the ACSCCities based on the system-wide cost of serving the Atmos Mid-TexDivision;and WHEREAS, the initial RRM Tariff was in effect for four(4) years; and WHEREAS, ACSC Cities and Atmos Mid-Tex entered into another settlement agreement and revised the RRM Tariff; and WHEREAS, ACSC Cities and Atmos Mid-Tex compromised and reached agreements on the amount of the rate increases to be in effect for the RRM Tariff filings for 2012and 2013; and WHEREAS, ACSC Cities and Atmos Mid-Tex were unable to reach an agreement on the 2014 RRM Tariff filing, resulting in the ACSC Cities’ rejection of the 2014 RRM filing; and WHEREAS, Atmos Mid-Tex appealed the ACSC Cities’ actions rejecting its 2014 RRM filing tothe Railroad Commission of Texas (“Commission”), pursuant to the provisions of the RRM Tariff; and WHEREAS, Atmos Mid-Tex and ACSC litigated the appeal of the 2014 RRM filingat the Commission; and WHEREAS, on February 27, 2015, Atmos Mid-Tex filed its 2015 RRM Tariff filing, requesting to increase natural gas base rates system-wide by $28.762 million; and WHEREAS, ACSCcoordinated its review of Atmos Mid-TexRRMfiling through its Executive Committee, assisted by ACSC’sattorneys and consultants, to resolve issues identified in the Company’s RRM filing; and WHEREAS, Atmos Mid-Tex has agreed to withdraw itsappeal of ACSC’s rejection of its 2014 RRM Tariff rate increase; and WHEREAS, the ExecutiveCommittee, as well as ACSC’scounseland consultants, recommend that ACSCCities approve the attached Settlement Agreement(Attachment A to this 4764616.1 2 Resolution)as well as the tariffs attached thereto,resolving both the 2014 and the 2015 RRM Tariff filings, which together will increase the Company’s revenuesby $65.7millionover the amount allowed under City-approved rates set in 2013; and WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated Settlement Agreementand are just, reasonable, and in the public interest;and WHEREAS, the RRM Tariff should be renewed for a period of time commencing in 2016 and continuing until the RRM Tariff is suspended by ordinance of the City; and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’sreasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT RESOLVEDBY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,TEXAS: Section 1. That the findings set forth in this Resolutionare hereby in all things approved. Section 2. That the City Council finds that the Settlement Agreement (Attachment A to this Resolution)representsa comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limitsarising from Atmos Mid-Tex’s 2014 and 2015 RRM filings, is in the public interest,and is consistent with the City’s authority under Section 103.001 of the Texas Utilities Code. Section 3. That the existing rates for natural gas service provided by Atmos Mid-Texare unreasonable. Thenew tariffs attached hereto and incorporated herein as Attachment C, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $65.7million in revenue over the amount allowed under currently approved rates, or $21million over currently-billed rates, as shown in the Proof of Revenuesattached hereto and incorporated herein as Attachment B; such tariffsare hereby adopted. 4764616.1 3 Section 4. That the ratemaking treatment for pensions and other post-employment benefits in Atmos’ next RRM filing shall be as set forth on Attachment D, attached hereto and incorporated herein. Section 5. That in an effort to streamline the regulatory review process, the Atmos Mid- Tex RRM Tariff is renewed for a period commencing with the Company’s March 1, 2016 RRM filing for calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as the City adopts an ordinance suspending operation of the RRM Tariff. Section 6. That Atmos Mid-Texshall reimburse the reasonable ratemaking expenses of the ACSCin processing the Company’s RRMapplication. Section 7. That to the extent any resolution previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 8. That the meeting at which this Resolutionwas 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 Resolutionis adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Resolutionand the remaining provisions of the Resolutionshall be interpreted as if the offending section or clause never existed. Section 10. That consistent withthe City ordinance that established the RRM process, this Resolutionshall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or afterJune 1,2015. Section 11. That a copy of this Resolutionshall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-TexDivision,Atmos Energy 4764616.1 4 Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240,and to Geoffrey Gay,General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite1900, Austin, Texas 78701. PASSED AND APPROVED this __________ day of ___________________, 2015. _________________________________ Mayor ATTEST:APPROVED AS TO FORM: _______________________________________________________________ City SecretaryCity Attorney 4764616.1 5 Attachment A SETTLEMENTAGREEMENTBETWEENATMOSENERGYCORP.,MID-TEX DIVISIONANDATMOSCITIESSTEERINGCOMMITTEE WHEREAS,thisagreement(“SettlementAgreement”)isenteredintobyAtmos EnergyCorp’sMid-TexDivisionandAtmosCitiesSteeringCommittee(“ACSC”)whose membersincludetheCitiesofAbilene,Addison,Allen,Alvarado,Angus,Anna,Argyle, Arlington,Aubrey,Bedford,Bellmead,Benbrook,BeverlyHills,Blossom,BlueRidge,Bowie, Boyd,Bridgeport,Brownwood,Buffalo,Burkburnett,Burleson,CaddoMills,Canton, Carrollton,CedarHill,Celeste,Celina,Centerville,Cisco,Clarksville,Cleburne,Clyde,College Station,Colleyville,ColoradoCity,Comanche,Commerce,Coolidge,Coppell,CopperasCove, Corinth,CorralCity,Crandall,Crowley,DalworthingtonGardens,Denison,DeSoto, Duncanville,Eastland,EdgecliffVillage,Emory,Ennis,Euless,Everman,Fairview,Farmers Branch,Farmersville,Fate,FlowerMound,ForestHill,FortWorth,Frisco,Frost,Gainesville, Garland,Garrett,GrandPrairie,Grapevine,Gunter,HaltomCity,HarkerHeights,Haskell, Haslet,Hewitt,HighlandPark,HighlandVillage,HoneyGrove,Hurst,Hutto,IowaPark,Irving, Justin,Kaufman,Keene,Keller,Kemp,Kennedale,Kerens,Kerrville,Killeen,Krum,Lake Worth,Lakeside,Lancaster,Lewisville,LincolnPark,LittleElm,Lorena,Madisonville, Malakoff,Mansfield,McKinney,Melissa,Mesquite,Midlothian,Murphy,Newark,Nocona, NorthRichlandHills,Northlake,Oakleaf,Ovilla,Palestine,Pantego,Paris,Parker,PecanHill, Petrolia,Plano,Ponder,Pottsboro,Prosper,Quitman,RedOak,Reno(ParkerCounty), Richardson,Richland,RichlandHills,Roanoke,Robinson,Rockwall,Roscoe,Rowlett,Royse City,Sachse,Saginaw,SansomPark,Seagoville,Sherman,Snyder,Southlake,Springtown, Stamford,Stephenville,SulphurSprings,Sweetwater,Temple,Terrell,TheColony,Trophy Club,Tyler,UniversityPark,Venus,Vernon,Waco,Watauga,Waxahachie,Westlake,White Settlement,Whitesboro,WichitaFalls,Woodway,andWylie. WHEREAS,onFebruary28,2014,AtmosfiledwiththeACSCCitiesanapplication, hereinafterreferredtoasthe2014RRMfiling,toadjustratespursuanttoRiderRRM-Rate ReviewMechanism,whichweresubsequentlyconsolidatedintoGUDNo.10359attheRailroad CommissionofTexas;and WHEREAS,onFebruary27,2015,AtmosfiledwiththeACSCCitiesanapplication, hereinafterreferredtoasthe2015RRMfiling,toadjustratespursuanttoRiderRRM-Rate ReviewMechanism;and WHEREAS,theSettlementAgreementresolvesallissuesbetweenAtmosandACSC (“theSignatories”)regardingthe2014RRMfiling,whichiscurrentlypendingbeforethe Commission,andthe2015RRMfiling,whichiscurrentlypendingbeforetheACSCCities,ina mannerthattheSignatoriesbelieveisconsistentwiththepublicinterest,andtheSignatories representdiverseinterests;and WHEREAS,theSignatoriesbelievethattheresolutionoftheissuesraisedinthe2014 RRMfilingandthe2015RRMfilingcanbestbeaccomplishedbyeachACSCCityapproving thisSettlementAgreementandtherates,termsandconditionsreflectedinthetariffsattachedto thisSettlementAgreementasExhibitA; NOW,THEREFORE,inconsiderationofthemutualagreementsandcovenants establishedherein,theSignatories,throughtheirundersignedrepresentatives,agreetothe 1 Attachment A followingSettlementTermsasameansoffullyresolvingallissuesbetweenAtmosandthe ACSCCitiesinvolvingthe2014RRMfilingand2015RRMfiling: SettlementTerms 1.UpontheexecutionofthisSettlementAgreement,theACSCCitieswillapprovean ordinanceorresolutiontoapprovetheSettlementAgreementandimplementtherates, termsandconditionsreflectedinthetariffsattachedtotheSettlementAgreementas ExhibitA.(AttachmentAtotheOrdinanceratifyingtheAgreement).Saidtariffs shouldallowAtmostorecoverannuallyanadditional$65.7millioninrevenueover theamountallowedundercurrentlyapprovedratesbyimplementationofratesshown intheproofofrevenuesattachedasExhibitB.(AttachmentBtotheOrdinance ratifyingthisAgreement).Theuniformimplementationofgasrates,termsand conditionsestablishedbytheSettlementAgreementshallbeeffectiveforbills renderedonorafterJune1,2015.ConsistentwiththeCity’sauthorityunderSection 103.001oftheTexasUtilitiesCode,theSettlementAgreementrepresentsa comprehensivesettlementofgasutilityrateissuesaffectingtherates,operationsand servicesofferedbyAtmoswithinthemunicipallimitsoftheACSCCitiesarisingfrom Atmos’2014RRMfilingand2015RRMfiling.Norefundsofchargesbilledto customersbyAtmosundertheRRMinpastperiodsshallbeowedorowing. 2.Inanefforttostreamlinetheregulatoryreviewprocess,AtmosandtheACSCCities haveagreedtorenewtheRateReviewMechanism(“RiderRRM”)foraperiod commencingwiththeCompany’sMarch1,2016filingunderthismechanismforthe calendaryear2015,effectiveJune1,2016,andcontinuingthereafteruntilsuchtimeas eithertheACSCCitiesissueanordinancestatingadesiretodiscontinuetheoperation ofthetarifforAtmosfilesaStatementofIntent.AtmosandtheACSCCitiesfurther agreethattheRRMtariffshallremainineffectuntilsuchtimeasnew,finalratesare establishedforAtmos.UponapprovalofthisSettlementAgreementbytheACSC Cities,AtmosshallfileanupdatedRRMTariffwitheachcityreflectingtheprovisions ofthisagreement. 3.AtmosandtheACSCCitiesagreethatratebaseasofDecember31,2014inthe amountof$1,955,948,256isjustandreasonableandshallberecoveredinrates. 4.AtmosandtheACSCCitiesagreethatapensionandotherpostemploymentbenefits balanceasofDecember31,2014intheamountof$18,284,949isjustandreasonable andshallbeusedasthebeginningbalanceforpurposesofdeterminingpensionand otherpostemploymentbenefitstoberecoveredinthenextRRMfiling(AttachmentD totheOrdinanceratifyingtheAgreement). 5.WithregardtothetreatmentofAtmos’Rule8.209regulatoryassetundertheRRM, AtmosandtheACSCCitiesagreetothefollowingwithrespecttoanypendingand futureRRMfilings: a.thecapitalinvestmentintheRule8.209regulatoryassetinthe2014RRMfiling and2015RRMfilingisreasonableandconsistentwiththerequirementsofRule 8.209; 2 Attachment A b.theclassificationofprojectsincludedintheRule8.209regulatoryassetinthe 2014RRMfilingand2015RRMfilingisreasonableandconsistentwiththe requirementsofRule8.209andshallserveasabasisforclassificationofprojects infutureRRMfilings; c. thetreatmentofblanketreplacementprojects,systemupgrades,relocations,and the2014RRM transmissionlinereplacementsintheRule8.209regulatoryassetin filingand2015RRMfilingreasonableandconsistentwiththerequirementsof is Rule8.209andshallbeincludedinfutureRRMfilings . d.theincurredexpensesincludedintheRule8.209regulatoryassetinthe2014 RRMandthe2015RRMarereasonableandconsistentwiththerequirementsof Rule8.209andshallbeincludedinfutureRRMfilings; e.interestontheRule8.209regulatoryassetaccountshallbecalculatedusingthe pre-taxcostofcapitalmostrecentlyapprovedbytheCommission.Theuseofthe pre-taxcostofcapitalisconsistentwithRule8.209.AreturnonRule8.209 capitalinvestmentisonlyearnedoncetheinvestmentisincludedinratebase.No changeintheCompany'scalculationoftheinterestcomponentinitsRule8.209 regulatoryassetaccountsiswarrantedthroughtheperiodendedMay31,2015. BeginningJune1,2015,interestexpenseshallbecalculatedmonthlyusingsimple interest(i.e.11.49%dividedby12,orapproximately0.96%permonth)appliedto thetotalvalueoftheRule8.209assetinvestment(exclusiveofinterest)untilsuch timetheRule8.209regulatoryassetisapprovedforinclusionintheCompany’s ratebase. f.WhileAtmosandtheACSCCitiesagreetoapplythetreatmentsand methodologiessetforthinthisparagraph,subsections(a)–(e)inallfutureRRM filings,theregulatoryauthorityretainsitsrighttodisallowanycapitalinvestment thatisnotshowntobeprudentlyincurred,andanyexpensenotshowntobe reasonableandnecessary,infutureRRMfilings. g.AtmosandtheACSCCitiesacknowledgethattheiragreementregardingthe treatmentandmethodologiesapplicabletoRule8.209capitalinvestmentsunder theRRMtariffshallnotprejudicetherightofeitherpartytoarguefordifferent treatmentsormethodologiesinafuturestatementofintentproceeding. 6.RevenuesapprovedpursuanttoParagraph1oftheSettlementAgreementinclude reimbursementofratecaseexpensesowedtotheACSCCitiesinconnectionwiththe 2014RRMfiling. 7.TheSignatoriesagreethateachACSCcityshallapprovethisSettlementAgreement andadoptanordinanceorresolutiontoimplementfortheACSCCitiestherates, terms,andconditionsreflectedinthetariffsattachedtotheSettlementAgreementas ExhibitA.AtmosandACSCfurtheragreethatatsuchtimeasalloftheACSCCities havepassedanordinanceorresolutionconsistentwiththeSettlementandAtmoshas receivedsuchordinanceorresolution,Atmosshallwithdrawitsappealofthecurrently pendingRRMfilingbeforetheRailroadCommissionofTexasinconnectionwiththe 2014RRMfiling. 3 Attachment A 8.AtmosandtheACSCCitiesfurtheragreethattheexpresstermsoftheRiderRRMare supplementaltothefiling,notice,regulatoryreview,orappellateproceduralprocessof theratemakingprovisionsofChapter104oftheTexasUtilitiesCode.Ifthestatute requiresamandatoryactiononbehalfofthemunicipalregulatoryauthorityorAtmos, thepartieswillfollowtheprovisionsofsuchstatute.Ifthestatuteallowsdiscretionon behalfofthemunicipalregulatoryauthority,theACSCCitiesagreethattheyshall exercisesuchdiscretioninsuchawayastoimplementtheprovisionsoftheRRM tariff.IfAtmosappealsanactionorinactionofanACSCCityregardinganRRM filingtotheRailroadCommission,theACSCCitiesagreethattheywillnotopposethe implementationofinterimratesoradvocatetheimpositionofabondbyAtmos consistentwiththeRRMtariff.Atmosagreesthatitwillmakenofilingsonbehalfof itsMid-TexDivisionundertheprovisionsofSection104.301oftheTexasUtilities codewhiletheRiderRRMisinplace.Intheeventthataregulatoryauthorityfailsto actorentersanadversedecisionregardingtheproposedannualRRMadjustment,the RailroadCommissionofTexasshallhaveexclusiveappellatejurisdiction,pursuantto theprovisionsoftheTexasUtilitiesCode,toreviewtheactionorinactionofthe regulatoryauthorityexercisingexclusiveoriginaljurisdictionovertheRRMrequest. Inaddition,theSignatoriesagreethatthisSettlementAgreementshallnotbe construedasawaiveroftheACSCCities’righttoinitiateashowcauseproceedingor theCompany’srighttofileaStatementofIntentundertheprovisionsoftheTexas UtilitiesCode. 9.TheSignatoriesagreethatthetermsoftheSettlementAgreementareinterdependent andindivisible,andthatifanyACSCcityentersanorderthatisinconsistentwiththis SettlementAgreement,thenanySignatorymaywithdrawwithoutbeingdeemedto havewaivedanyproceduralrightortohavetakenanysubstantivepositiononanyfact orissuebyvirtueofthatSignatory’sentryintotheSettlementAgreementorits subsequentwithdrawal.IfanyACSCcityrejectsthisSettlementAgreement,thenthis SettlementAgreementshallbevoidabinitioandcounselfortheACSCCitiesshall thereafteronlytakesuchactionsasareinaccordancewiththeTexasDisciplinary RulesofProfessionalConduct. 10.TheSignatoriesagreethatallnegotiations,discussionsandconferencesrelatedtothe SettlementAgreementareprivileged,inadmissible,andnotrelevanttoproveany issuesassociatedwithAtmos’2014RRMfilingand2015RRMfiling. 11.TheSignatoriesagreethatneitherthisSettlementAgreementnoranyoralorwritten statementsmadeduringthecourseofsettlementnegotiationsmaybeusedforany purposeotherthanasnecessarytosupporttheentrybytheACSCCitiesofan ordinanceorresolutionimplementingthisSettlementAgreement. 12.TheSignatoriesagreethatthisSettlementAgreementisbindingoneachSignatory onlyforthepurposeofsettlingtheissuessetforthhereinandfornootherpurposes, and,excepttotheextenttheSettlementAgreementgovernsaSignatory’srightsand obligationsforfutureperiods,thisSettlementAgreementshallnotbebindingor precedentialuponaSignatoryoutsidethisproceeding. 4 Attachment A 13.TheSignatoriesagreethatthisSettlementAgreementmaybeexecutedinmultiple counterpartsandmaybefiledwithfacsimilesignatures. 5 Attachment A Attachment A Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:C–COMMERCIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoCommercialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeterandtoIndustrialCustomerswithanaverageannualusageoflessthan30,000Ccf. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperBill$40.00permonth 1 RiderCEESurcharge$0.00permonth TotalCustomerCharge $40.00permonth CommodityCharge–AllCcf$0.08020perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1ReferenceRiderCEE-ConservationAndEnergyEfficiencyasapprovedinGUD10170.SurchargebillingeffectiveJuly1,2014. Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoIndustrialCustomerswithamaximumdailyusage(MDU)oflessthan3,500MMBtuperday forallnaturalgasprovidedatonePointofDeliveryandmeasuredthroughonemeter.Servicefor IndustrialCustomerswithanMDUequaltoorgreaterthan3,500MMBtuperdaywillbeprovidedat Company'ssoleoptionandwillrequirespecialcontractarrangementsbetweenCompanyandCustomer. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu$0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedinPlattsGasDailypublishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateI,CustomermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:R–RESIDENTIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoResidentialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeter. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperBill$18.60permonth 1 RiderCEESurcharge$0.02permonth TotalCustomerCharge $18.62permonth CommodityCharge–AllCcf$0.09931perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1 ReferenceRiderCEE-ConservationAndEnergyEfficiencyasapprovedinGUD10170.SurchargebillingeffectiveJuly1,2014. Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application Applicable,intheeventthatCompanyhasenteredintoaTransportationAgreement,toacustomer directlyconnectedtotheAtmosEnergyCorp.,Mid-TexDivisionDistributionSystem(Customer)forthe transportationofallnaturalgassuppliedbyCustomerorCustomer’sagentatonePointofDeliveryfor useinCustomer'sfacility. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'sbillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestotheamounts andquantitiesdueundertheriderslistedbelow: ChargeAmount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu$0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu UpstreamTransportationCostRecovery:Plusanamountforupstreamtransportationcostsin accordancewithPart(b)ofRiderGCR. RetentionAdjustment:PlusaquantityofgasascalculatedinaccordancewithRiderRA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). ImbalanceFees AllfeeschargedtoCustomerunderthisRateSchedulewillbechargedbasedonthequantities determinedundertheapplicableTransportationAgreementandquantitieswillnotbeaggregatedforany CustomerwithmultipleTransportationAgreementsforthepurposesofsuchfees. MonthlyImbalanceFees CustomershallpayCompanythegreaterof(i)$0.10perMMBtu,or(ii)150%ofthedifferenceperMMBtu betweenthehighestandlowest“midpoint”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”duringsuchmonth,fortheMMBtuofCustomer’smonthlyCumulative Imbalance,asdefinedintheapplicableTransportationAgreement,attheendofeachmonththatexceeds 10%ofCustomer’sreceiptquantitiesforthemonth. Attachment A Exhibit A MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedinPlattsGasDailypublishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Agreement Atransportationagreementisrequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateT,customermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Attachment A Exhibit A MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: ProvisionsforAdjustment TheCommodityChargeperCcf(100cubicfeet)forgasservicesetforthinanyRateSchedulesutilized bythecitiesoftheMid-TexDivisionserviceareafordeterminingnormalizedwinterperiodrevenuesshall beadjustedbyanamounthereinafterdescribed,whichamountisreferredtoasthe"Weather NormalizationAdjustment."TheWeatherNormalizationAdjustmentshallapplytoalltemperature sensitiveresidentialandcommercialbillsbasedonmetersreadduringtherevenuemonthsofNovember throughApril.ThefiveregionalweatherstationsareAbilene,Austin,Dallas,Waco,andWichitaFalls. ComputationofWeatherNormalizationAdjustment TheWeatherNormalizationAdjustmentFactorshallbecomputedtothenearestone-hundredthcent perCcfbythefollowingformula: (HSFx(NDD-ADD)) i WNAF=R ii (BL+(HSFxADD)) ii Where i=anyparticularRateScheduleorbillingclassificationwithinanysuch particularRateSchedulethatcontainsmorethanonebillingclassification th WNAF=WeatherNormalizationAdjustmentFactorfortheiratescheduleor i classificationexpressedincentsperCcf th R=CommodityChargerateoftemperaturesensitivesalesfortheischeduleor i classification. th HSF=heatsensitivefactorfortheischeduleorclassificationdividedbythe i averagebillcountinthatclass NDD=billingcyclenormalheatingdegreedayscalculatedasthesimpleten-year averageofactualheatingdegreedays. ADD=billingcycleactualheatingdegreedays. th Bl=baseloadsalesfortheischeduleorclassificationdividedbytheaverage i billcountinthatclass TheWeatherNormalizationAdjustmentforthejthcustomerinithratescheduleiscomputedas: WNA=WNAFxq iiij Whereqistherelevantsalesquantityforthejthcustomerinithrateschedule. ij Attachment A Exhibit A MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: BaseUse/HeatUseFactors ResidentialCommercial BaseuseHeatuseBaseuseHeatuse WeatherStationCcfCcf/HDDCcfCcf/HDD Abilene10.220.140498.800.6372 Austin11.590.1443213.620.7922 Dallas14.120.2000208.110.9085 Waco9.740.1387130.270.6351 Wichita11.790.1476122.350.5772 Falls WeatherNormalizationAdjustment(WNA)Report OnorbeforeJune1ofeachyear,thecompanypostsonitswebsiteatatmosenergy.com/mtx-wna,in Excelformat,aWeatherNormalizationAdjustment(WNA)Reporttoshowhowthecompanycalculated itsWNAsfactorduringtheprecedingwinterseason.Additionally,onorbeforeJune1ofeachyear,the companyfilesonehardcopyandaExcelversionoftheWNAReportwiththeRailroadCommissionof Texas'GasServicesDivision,addressedtotheDirectorofthatDivision. Attachment A Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:C–COMMERCIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoCommercialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeterandtoIndustrialCustomerswithanaverageannualusageoflessthan30,000Ccf. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperBill$40.00permonth 1 RiderCEESurcharge$0.00permonth TotalCustomerCharge $40.00permonth CommodityCharge–AllCcf$0.08020perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1ReferenceRiderCEE-ConservationAndEnergyEfficiencyasapprovedinGUD10170.SurchargebillingeffectiveJuly1,2014. Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoIndustrialCustomerswithamaximumdailyusage(MDU)oflessthan3,500MMBtuperday forallnaturalgasprovidedatonePointofDeliveryandmeasuredthroughonemeter.Servicefor IndustrialCustomerswithanMDUequaltoorgreaterthan3,500MMBtuperdaywillbeprovidedat Company'ssoleoptionandwillrequirespecialcontractarrangementsbetweenCompanyandCustomer. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu$0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedinPlattsGasDailypublishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:I–INDUSTRIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateI,CustomermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:R–RESIDENTIALSALES ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application ApplicabletoResidentialCustomersforallnaturalgasprovidedatonePointofDeliveryandmeasured throughonemeter. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'smonthlybillwillbecalculatedbyaddingthefollowingCustomerandCcfchargestothe amountsdueundertheriderslistedbelow: ChargeAmount CustomerChargeperBill$18.60permonth 1 RiderCEESurcharge$0.02permonth TotalCustomerCharge $18.62permonth CommodityCharge–AllCcf$0.09931perCcf GasCostRecovery:Plusanamountforgascostsandupstreamtransportationcostscalculated inaccordancewithPart(a)andPart(b),respectively,ofRiderGCR. WeatherNormalizationAdjustment:PlusorMinusanamountforweathernormalization calculatedinaccordancewithRiderWNA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). Agreement AnAgreementforGasServicemayberequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. 1 ReferenceRiderCEE-ConservationAndEnergyEfficiencyasapprovedinGUD10170.SurchargebillingeffectiveJuly1,2014. Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: Application Applicable,intheeventthatCompanyhasenteredintoaTransportationAgreement,toacustomer directlyconnectedtotheAtmosEnergyCorp.,Mid-TexDivisionDistributionSystem(Customer)forthe transportationofallnaturalgassuppliedbyCustomerorCustomer’sagentatonePointofDeliveryfor useinCustomer'sfacility. TypeofService WhereserviceofthetypedesiredbyCustomerisnotalreadyavailableatthePointofDelivery,additional chargesandspecialcontractarrangementsbetweenCompanyandCustomermayberequiredpriorto servicebeingfurnished. MonthlyRate Customer'sbillwillbecalculatedbyaddingthefollowingCustomerandMMBtuchargestotheamounts andquantitiesdueundertheriderslistedbelow: ChargeAmount CustomerChargeperMeter$700.00permonth First0MMBtuto1,500MMBtu$0.2937perMMBtu Next3,500MMBtu$0.2151perMMBtu AllMMBtuover5,000MMBtu$0.0461perMMBtu UpstreamTransportationCostRecovery:Plusanamountforupstreamtransportationcostsin accordancewithPart(b)ofRiderGCR. RetentionAdjustment:PlusaquantityofgasascalculatedinaccordancewithRiderRA. FranchiseFeeAdjustment:PlusanamountforfranchisefeescalculatedinaccordancewithRider FF.RiderFFisonlyapplicabletocustomersinsidethecorporatelimitsofanyincorporated municipality. TaxAdjustment:PlusanamountfortaxcalculatedinaccordancewithRiderTAX. Surcharges:Plusanamountforsurchargescalculatedinaccordancewiththeapplicablerider(s). ImbalanceFees AllfeeschargedtoCustomerunderthisRateSchedulewillbechargedbasedonthequantities determinedundertheapplicableTransportationAgreementandquantitieswillnotbeaggregatedforany CustomerwithmultipleTransportationAgreementsforthepurposesofsuchfees. MonthlyImbalanceFees CustomershallpayCompanythegreaterof(i)$0.10perMMBtu,or(ii)150%ofthedifferenceperMMBtu betweenthehighestandlowest“midpoint”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”duringsuchmonth,fortheMMBtuofCustomer’smonthlyCumulative Imbalance,asdefinedintheapplicableTransportationAgreement,attheendofeachmonththatexceeds 10%ofCustomer’sreceiptquantitiesforthemonth. Attachment C MID-TEXDIVISIONRRCTariffNo: ATMOSENERGYCORPORATION RATESCHEDULE:T–TRANSPORTATION ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter06/01/2015PAGE: CurtailmentOverpullFee UponnotificationbyCompanyofaneventofcurtailmentorinterruptionofCustomer’sdeliveries, Customerwill,foreachMMBtudeliveredinexcessofthestatedlevelofcurtailmentorinterruption,pay Company200%ofthemidpointpricefortheKatypointlistedinPlattsGasDailypublishedforthe applicableGasDayinthetableentitled“DailyPriceSurvey.” ReplacementIndex Intheeventthe“midpoint”or“common”pricefortheKatypointlistedinPlattsGasDailyinthetable entitled“DailyPriceSurvey”isnolongerpublished,Companywillcalculatetheapplicableimbalancefees utilizingadailypriceindexrecognizedasauthoritativebythenaturalgasindustryandmostclosely approximatingtheapplicableindex. Agreement Atransportationagreementisrequired. Notice Servicehereunderandtheratesforservicesprovidedaresubjecttotheordersofregulatorybodies havingjurisdictionandtotheCompany’sTariffforGasService. SpecialConditions InordertoreceiveserviceunderRateT,customermusthavethetypeofmeterrequiredbyCompany. CustomermustpayCompanyallcostsassociatedwiththeacquisitionandinstallationofthemeter. Attachment C MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: ProvisionsforAdjustment TheCommodityChargeperCcf(100cubicfeet)forgasservicesetforthinanyRateSchedulesutilized bythecitiesoftheMid-TexDivisionserviceareafordeterminingnormalizedwinterperiodrevenuesshall beadjustedbyanamounthereinafterdescribed,whichamountisreferredtoasthe"Weather NormalizationAdjustment."TheWeatherNormalizationAdjustmentshallapplytoalltemperature sensitiveresidentialandcommercialbillsbasedonmetersreadduringtherevenuemonthsofNovember throughApril.ThefiveregionalweatherstationsareAbilene,Austin,Dallas,Waco,andWichitaFalls. ComputationofWeatherNormalizationAdjustment TheWeatherNormalizationAdjustmentFactorshallbecomputedtothenearestone-hundredthcent perCcfbythefollowingformula: (HSFx(NDD-ADD)) i WNAF=R ii (BL+(HSFxADD)) ii Where i=anyparticularRateScheduleorbillingclassificationwithinanysuch particularRateSchedulethatcontainsmorethanonebillingclassification th WNAF=WeatherNormalizationAdjustmentFactorfortheiratescheduleor i classificationexpressedincentsperCcf th R=CommodityChargerateoftemperaturesensitivesalesfortheischeduleor i classification. th HSF=heatsensitivefactorfortheischeduleorclassificationdividedbythe i averagebillcountinthatclass NDD=billingcyclenormalheatingdegreedayscalculatedasthesimpleten-year averageofactualheatingdegreedays. ADD=billingcycleactualheatingdegreedays. th Bl=baseloadsalesfortheischeduleorclassificationdividedbytheaverage i billcountinthatclass TheWeatherNormalizationAdjustmentforthejthcustomerinithratescheduleiscomputedas: WNA=WNAFxq iiij Whereqistherelevantsalesquantityforthejthcustomerinithrateschedule. ij Attachment C MID-TEXDIVISION ATMOSENERGYCORPORATION RIDER:WNA–WEATHERNORMALIZATIONADJUSTMENT ALLCUSTOMERSINTHEMID-TEXDIVISIONEXCEPTTHECITYOF APPLICABLETO: DALLASANDUNINCORPORATEDAREAS EFFECTIVEDATE:BillsRenderedonorafter11/01/2015PAGE: BaseUse/HeatUseFactors ResidentialCommercial BaseuseHeatuseBaseuseHeatuse WeatherStationCcfCcf/HDDCcfCcf/HDD Abilene10.220.140498.800.6372 Austin11.590.1443213.620.7922 Dallas14.120.2000208.110.9085 Waco9.740.1387130.270.6351 Wichita11.790.1476122.350.5772 Falls WeatherNormalizationAdjustment(WNA)Report OnorbeforeJune1ofeachyear,thecompanypostsonitswebsiteatatmosenergy.com/mtx-wna,in Excelformat,aWeatherNormalizationAdjustment(WNA)Reporttoshowhowthecompanycalculated itsWNAsfactorduringtheprecedingwinterseason.Additionally,onorbeforeJune1ofeachyear,the companyfilesonehardcopyandaExcelversionoftheWNAReportwiththeRailroadCommissionof Texas'GasServicesDivision,addressedtotheDirectorofthatDivision. ATTACHMENT D WP_F-2.3.1Page 1 of 1 18,284,9499,753,8358,365,356165,75818,284,94910,501,2507,783,69918,284,949 Adjustment Total (g) $ $ $ $ $ $ 8,736,64571.70%6,264,334100.00%6,264,3346,264,3346,264,33443.03%2,695,72156.97%3,568,6146,264,334 Post-Retirement Medical Plan ("FAS 106") (f) $ $ $ $ $ $ $ $ 165,758100.00%165,758100.00%165,758165,758165,75821.00%34,80979.00%130,949165,758 Mid-Tex Direct Supplemental Executive Benefit Plan ("SERP") $ (e) $ $ $ $ $ $ $ PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL 9,481,6706,798,5316,798,5316,798,5316,798,5312,925,6003,872,9306,798,531 71.70%100.00%43.03%56.97% Account Plan Pension ("PAP") (d) $ $ $ $ $ $ $ $ ATMOS ENERGY CORP., MID-TEX DIVISION TEST YEAR ENDING DECEMBER 31, 2014 4,542,0232,101,0212,101,0212,101,0212,101,0212,013,2602,101,021 46.26%100.00%95.82%4.18%87,761 Post-Retirement Medical Plan ("FAS 106") (c) $ Shared Services $ $ $ $ $ $ $ 6,388,8262,955,3042,955,3042,955,3042,955,3042,831,8592,955,304 46.26%100.00%95.82%4.18%123,445 Account Plan Pension ("PAP") (b) $ $ $ $ $ $ $ $ Fiscal Year 2014 Towers Watson Report (excluding Removed Cost FY14 Towers Watson Benefit Costs (excluding Removed Cost FY14 Towers Watson Benefit Costs To Approve (excluding Total Supplemental Executive Retirement Plan ("SERP") Total Post-Retirement Medical Plan ("FAS 106") Centers) Allocated to MTX (Ln 1 x Ln 2) Description Removed Cost Centers) (Ln 3 x Ln 4) Total Pension Account Plan ("PAP") (a) O&M and Capital Allocation Factor Summary of Costs to Approve: Expense Portion (Ln 13 x Ln 16) Capital Portion (Ln 13 x Ln 20) Total (Ln 10 + Ln 11 + Ln 12) Allocation to Mid-Tex O&M Expense Factor Total (Ln 18 + Ln 22) Capital Factor Centers) File Date: February 27, 2015 101112131415161718192021222324 Line No. 123456789