HomeMy WebLinkAboutORD 2009-031 ORDINANCE NO. 2009-31
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, ("CITY") APPROVING A
NEGOTIATED RESOLUTION BETWEEN THE ATMOS
CITIES STEERING COMMITTEE ("ACSC" OR "STEERING
COMMITTEE") AND ATMOS ENERGY CORP., MID-TEX
DIVISION ("ATMOS MID-TEX" OR "COMPANY")
REGARDING THE COMPANY'S RATE REVIEW
MECHANISM FILING IN ALL CITIES EXERCISING
ORIGINAL JURISDICTION; DECLARING EXISTING
RATES TO BE UNREASONABLE; REQUIRING THE
COMPANY TO REIMBURSE CITIES' REASONABLE
RATEMAKING EXPENSES; 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 THE STEERING
COMMITTEE'S LEGAL COUNSEL
WHEREAS, the City of Grapevine, Texas ("City") is a gas utility customer of
Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or " Company"), and a
regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee
("ACSC" or "Steering Committee"), 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, pursuant to the terms of the agreement settling the Company's 2007
Statement of Intent to increase rates, ACSC Cities and the Company worked
collaboratively to develop the Rate Review Mechanism ("RRM") tariff that allows for an
expedited rate review process controlled in a three year experiment by ACSC Cities as
a substitute to the current GRIP process instituted by the Legislature; and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with
Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff;
and
WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of
ACSC Cities' reasonable expenses associated with RRM applications; and
WHEREAS, on or about March 6, 2009, Atmos Mid-Tex filed with the City its
second application pursuant to the RRM tariff to increase natural gas rates by
approximately $20.2 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 Settlement 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
Mid-Tex is able to justify a slight rate increase over current rates; and
WHEREAS, the Steering Committee has advocated in other proceedings that
Atmos Mid-Tex hedge natural gas futures in order to mitigate the volatility of natural gas
prices, which are a flow through to customers; and
WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and
consultants, recommend that ACSC members approve the attached rate tariffs
("Attachment A" to this Ordinance), which will increase the Company's revenue
requirement by $2.6 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 ACSC Cities and are just, reasonable, and in the public interest;
and
WHEREAS, it is the intention of the parties that if the City determines 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 the
Company's RRM filing would be more beneficial to the City than the terms of the
attached tariff, then the more favorable rates, revenues, terms and conditions, or
benefits shall additionally accrue to the City; and
WHEREAS, the negotiated resolution of the Company's RRM filing and the
resulting rates are, as a whole, in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
ORD. NO. 2009-31 2
Section 1. That the findings set forth in this Ordinance are hereby in all things
approved.
Section 2. That the City Council finds that the 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 Atmos Mid-Tex shall reimburse the reasonable rate making
expenses of the ACSC Cities in processing the Company's rate application.
Section 4. That to the extent any resolution or ordinance previously adopted by
the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 5. That the meeting at which this Ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 6. 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 7. That if the City determines 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 the Company's RRM filing would be
more beneficial to the City than the terms of the attached tariff, then the more favorable
rates, revenues, terms and conditions, or benefits shall additionally accrue to the City.
Section 8. That the Company's Gas Cost Recovery tariff is revised to permit
recovery of certain costs associated with hedging natural gas futures.
Section 9. That this Ordinance shall become effective from and after its passage
with rates authorized by attached Tariffs to be effective for bills rendered on or after
August 1, 2009.
Section 10. 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 BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of August, 2009.
ORD. NO. 2009-31 3
APPROVED:
f)/6
William D. Tate
Mayor
ATTEST:
tz=4, tit...i
Linda Huff
City Secretary
APPROVED AS TO FORM:
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John F. Boyle, Jr.
City Attorney
ORD. NO. 2009-31 4
IXHIRIT_ TO oRA Po. Roo?. I Attachment A
ATMOS ENERGY CORPORATION PEI. --L. of /
MID-TEX DIVISION EVISION NO: 0
RATE SCHEDULE: R—RESIDENTIAL SALES
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE:29
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 $2.2707 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT J. TO E•IVO. aoo9-31
Page _____ of , /y Attachment A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO:0
RATE SCHEDULE: C—COMMERCIAL SALES
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 30
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 $ 0.9877 per Mcf
Gas Cost Recovery: Pius 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT—d. TO Dk D. °20 -3/Attachment A
Page ... . of
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE:31
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 $0.2583 per MMBtu
Next 3,500 MMBtu $0.1884 per MMBtu
All MMBtu over 5,000 MMBtu $0.0404 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled"Daily Price Survey."
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT—La TOO ua do 2:-.4,4
Page 5/ of /'•/ Attachment A
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: I—INDUSTRIAL SALES
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 32
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits 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:
EXHIBIT. . TO oR R ND.6100 3/ Attachment A
Page _..5 of , P
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 33
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 $0.2583 per MMBtu
Next 3,500 MMBtu $0.1884 per MMBtu
All MMBtu over 5,000 MMBtu $0.0404 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part(b)of Rider GCR.
Rate Review Mechanism: Plus or Minus an amount for rates as 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. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT.... TO oIO.No 2009- 3L Attachment A
Page of ,
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: T—TRANSPORTATION
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE:34
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 Plaits 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:
EXHIBIT,_ TO oR •No. °Z— y—.9:3/ Attachment A
Page .2_, of _1_t—__
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bilis Rendered on or after 08/01/2009 PAGE:45
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
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per 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:
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT_JL TO f a 4)0. a°0.31 Attachment A
ATMOS ENERGY CORPORATION Page � of • `�
MID-TEX DIVISION REVISION NO: 0
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE:46
WNA,= WNAF, x qq
Where q,r 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 Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Mcf Mcf/HDD Mcf Mcf/HDD
Abilene 0.98 .0140 9.64 .0629
Austin 1.30 .0161 20.00 .0815
Dallas 1.60 .0212 20.12 .1018
Waco 1.12 .0139 11.69 .0608
Wichita 1.12 .0159 11.67 .0649
Falls
Sample WNAFI Calculation:
(.0140 x (30-17) )
.3393 per Mcf = 2.2707 x
Where (0.98 + (.0140 x 17) )
i = Residential Single Block Rate Schedule
Ri = 2.2707 per MCF
HSFi = .0140(Residential-Abilene Area)
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
Attachment A
EXHIBIT. A , TO PAD-Av. a009-31
ATMOS ENERGY CORPORATION Page ._.'. of 41'
MID-TEX DIVISION REVISION NO: 0
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as"Group A"on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE:47
NDD = 30 HDD(Simple ten-year average of Actual HDD for Abilene Area—9/15/06
—10/14/06)
ADD = 17 HDD(Actual HDD for Abilene Area—9/15/06—10/14/06)
Bli = 0.98 Mcf(Residential -Abilene Area)
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT.._ TO PRA itld. a OOQ 31 Attachment A
Page /0 of , 0/
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER: GCR—GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/1/2009 PAGE:68
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(RE)+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 on overcharges and under charges by a utility as published by the Public Utility
Commission each December. The interest rate for calendar year 2009 is 2.09%.
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. Also includes any
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT__.._ TO 040. 'Jo. 9409.-3( Attachment A
Page —11—. of /Y.
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO:0
RIDER: GCR—GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/112009 PAGE: 69
prudently incurred transaction-related fees, gains or losses and other transaction costs associated
with the use of various financial instruments that are executed by the Company for the purpose of
price volatility mitigation.
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.
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:
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT_ TO 0' 0. )00. ,a Q,$ 3I Attachment A
Page __1. of , /
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER: GCR—GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/1/2009 PAGE:70
Pipeline Cost Rate Class Allocation Factor(0)
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.
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:
EXHIBIT-A._ TO ORO-Ma 12009.3 I Attachment A
Page _. /3 of , /' •
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER: CEE—CONSERVATION& ENERGY EFFICIENCY
APPLICABLE TO: All Cities except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/1/2009 PAGE: 84
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 one thousand five hundred dollars ($1,500.00)worth of
caulking, weather-stripping, sheathing, sealing, water heater blankets, related gas plumbing, and like
materials, other energy saving devices such as clock-thermostats, set-back devices ("covered items")
from approved suppliers/retailers including necessary labor.
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 and
other government energy efficiency program 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 annual 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 regulatory asset/liability accounting employed by Atmos to track the difference
between program funding and qualifying program expenditures. No Atmos employee labor will be
charged as a program expenditure.
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.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXHIBIT.L. TO ifteP. 40. 02009-3/Attachment A
Page , of . ,
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER: CEE—CONSERVATION& ENERGY EFFICIENCY
APPLICABLE TO: All Cities except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/1/2009 PAGE: 85
Audits will be provided all interested parties within 120 days of the end of each program year to determine
effectiveness.
Report
Atmos shall file an annual report detailing cost to administer the program including the amounts paid out
of the program for energy conversation assistance. The report shall also detail the number of applicants
and expenditures by geographic location, including the numbers of applications rejected and accepted
and reason if rejected. The report shall be filed with the Director of the Gas Services Division of the
Railroad Commission within 120 days of the end of each program year and with counsel of record for
municipalities served by the Mid-Tex Division.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
EXMIBIT,.. 'd TO p -O./3o. aoo9.3/
Page __L.. of INIIIIILIIIIMI_
ATTACHMENT B
ATMOS ENERGY CORP.,MID-TEX DIVISION
PROOF OF REVENUES
TEST YEAR ENDING DECEMBER 31,2008
(2009 RRM SETTLEMENT PROPOSAL)
Line Prospective Total change from
No. Description Rate Increase 2008 True-up current rates
(a) (b) (c) (d)
1 Rate R
2 Consumption Charge per MCF
3 Change from Current Rate $0.1047 $0.0060 $0.0297
4 Billing Units for Specified Period 82,321,960 82,321,960 82,321,960
5 Total Change in Base Revenue $8,619,109 $493,932 $2,444,962
6 Associated Revenue Taxes $532,144 $30,495 $150,952
7 Total Rate Impact $9,151,253 $524,427 $2,595,914
8 Number of Bills for Specified Period 17,244,058 17,244,058 17,244,058
9 Average Impact per Bill $0.53 $0.03 $0.15
10 Rate C
11 Consumption Charge per MCF
12 Change from Current Rate $0.0383 $0.0052 $0.0068
13 Billing Units for Specified Period 52,439,100 52,439,100 52,439,100
14 Total Change in Base Revenue $2,008,418 $272,683 $356,586
15 Associated Revenue Taxes $124,000 $16,835 $22,016
16 Total Rate Impact $2,132,417 $289,519 $378,601
17 Number of Bills for Specified Period 1,452,943 1,452,943 1,452,943
18 Average Impact per Bill $1.47 $0.20 $0.26
19 Rates I&T-1st block
20 Consumption Charge per MCF
21 Change from Current Rate $0.0144 $0.0087 ($0.0150)
22 Billing Units for Specified Period 9,681,181 9,681,181 9,681,181
23 Total Change in Base Revenue $139,409 $84,226 ($145,218)
24 Associated Revenue Taxes $8,607 $5,200 ($8,966)
25 Total Rate Impact $148,016 $89,426 ($154,183)
26 Rates l&T-2nd block
27 Consumption Charge per MCF
28 Change from Current Rate $0.0105 $0.0064 ($0.0109)
29 Billing Units for Specified Period 10,782,882 10,782,882 10,782,882
30 Total Change in Base Revenue $113,220 $69,010 ($117,533)
31 Associated Revenue Taxes $6,990 $4,261 ($7,257)
32 Total Rate Impact $120,210 $73,271 ($124,790)
33 Rates l&T-3rd block
34 Consumption Charge per MCF
35 Change from Current Rate $0.0023 $0.0014 ($0.0023)
36 Billing Units for Specified Period 19,798,632 19,798,632 19,798,632
37 Total Change in Base Revenue $45,537 $27,718 ($45,537)
38 Associated Revenue Taxes $2,811 $1,711 ($2,811)
39 Total Rate Impact $48,348 $29,429 ($48,348)
40 Rates l&T-Total
41 Total Rate Impact $316,575 $192,127 ($327,322)
42 Number of Bills for Specified Period 11,571 11,571 11,571
43 Average Impact per Bill $12.79 $7.73 ($13.32)
44
45 Total Change in Base Revenue $10,925,693 $947,570 $2,493,260
46 Total Rate Impact(Inc. Rev.Taxes) $11,600,245 $1,006,073 $2,647,194