HomeMy WebLinkAboutItem 06 - Atmos Comprehensive Settlement ���� � �
; � MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER /�'� �
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MEETING DATE: FEBRUARY 19, 2008
SUBJECT: ATMOS COMPREHENSIVE SETTLEMENT ORDINANCE
RECOMMENDATION:
City Council to consider an ordinance settling a rate case with Atmos Energy.
BACKGROUND:
Atmos has filed annual GRIP (Gas Reliability Infrastructure Program) increases with the
City for the past several years. Generally, the City reviews the requested increase,
eventually denies it, then it goes to the Railroad Commission (RRC) on Appeal. In most
all cases, the RRC overturns the denial and approves the rate increase. Atmos has
been very hesitant to work with the Steering Committees. However, because of the
� frequency of the increases, as well as the inclusion of some questionable expenses in
the increases, Atmos has been the subject of much public and media scrutiny. This
seems to have made a difference in the willingness of Atmos to negotiate with the cities.
On September 20, 2007, Atmos filed a $52 million system-wide rate increase. The city
suspended the effective date to work with other Atmos cities to analyze the filing. This
rate increase represents the seventh requested increase in natural gas rates since 2004.
Four of these rate increases were the result of GRIP requests.
As with other rate cases, the Atmos cities retained consultants to evaluate the most
recent request. The consultants found that, while a $52 million rate increase is not
justified, a smaller increase of $8 million is reasonable and that the RRC would probably
grant a $10 million increase. A contested rate increase at the RRC level would likely
take months and cost taxpayers several million dollars and would not likely produce a
more favorable rate in the end.
In addition to the rate settlement for the system-wide rate case, the settlement also
achieves several other desirable outcomes, including:
• Does away with piecemeal ratemaking inherent in the GRIP statute
• Implements an expedited rate review process that includes the cities and allows for
review of all aspects of Atmos cost for service
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February 13, 2008 (11:30AM)
• Requires Atmos to reimburse the cities more than $500,000 used to fight past GRIP
increases
• Protects the Atmos Steering Committee members from the remote possibility that a
litigated outcome or settlement with other parties produces a result more favorable
than the ordinance passed by Atmos Cities Steering Committee members by
including a "Most Favored Nations" clause
City Attorney Cathy Cunningham represented Boyle & Lowry client cities on the
settlement committee and recommends approval of the ordinance. In addition City staff
and the consultants working on behalf of the Atmos cities also recommend approval.
The City Council Utility Committee has been briefed and concurs with the staff
recommendation.
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February 13, 2008 (11:30AM)
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, ("CITY") APPROVING A
SETTLEMENT AGREEMENT BETWEEN THE ATMOS
CITIES STEERING COMMITTEE AND ATMOS ENERGY
CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "THE
COMPANY") REGARDING THE COMPANY'S STATEMENT
OF INTENT TO CHANGE GAS RATES IN ALL CITIES
EXERCISING ORIGINAL JURISDICTION; DECLARING
EXISTING RATES TO BE UNREASONABLE; ADOPTING
TARIFFS THAT REFLECT RATE ADJUSTMENTS
CONSISTENT WITH THE SETTLEMENT AGREEMENT
AND FINDING THE RATES TO BE SET BY THE
ATTACHED TARIFFS TO BE JUST AND REASONABLE;
ADOPTING A SAVINGS CLAUSE; DETERMINING THAT
THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH
THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; REQUIRING DELIVERY OF THIS ORDINANCE TO
THE COMPANY AND LEGAL COUNSEL AND PROVIDING
AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, 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, on or about September 20, 2007, Atmos Mid-Tex, pursuant to Gas
Utility Regulatory Act § 104.102 filed with the City a Statement of Intent to increase
system-wide gas rates by approximately $52 million, such increase to be effective in all
municipalities exercising original jurisdiction within its Mid-Tex Division service area
effective on October 25, 2007; and
WHEREAS, the City took action to suspend the October 25, 2007 Effective Date
and to coordinate a response to Atmos' filing with more than 150 other similarly situated
municipalities through the Atmos Cities Steering Committee ("ACSC") (such
participating cities are referred to herein as "ACSC Cities"); and
WHEREAS, Atmos has agreed to extend the October 25, 2007, Effective Date
such that the City's jurisdiction over this matter ends March 1, 2008; and
WHEREAS, the Railroad Commission of Texas ("RRC" or the "Commission") in
GUD No. 9670, issued an Order approving new system-wide rates for customers of
Atmos Energy's Mid-Tex Division in March 2007, which increased residential base rates
by approximately $10 million annually; and
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WHEREAS, ACSC and Atmos have each appealed the RRC's decision in Atmos'
most recent system-wide rate increase as well as the decision rendered in GUD No.
9400 to the Travis County District Court; and
WHEREAS, Atmos and ACSC have been in continuing disagreement, dispute,
and litigation over the application of Section 104.301 of the Texas Utilities Code and the
resulting rate increases ("GRIP surcharges") established by the RRC; and
WHEREAS, Atmos filed its application for its fourth GRIP surcharge in four years
on May 31, 2007, seeking to increase the rates of all customers by approximately $12
million annually; and
WHEREAS, the ACSC Cities desire to avoid the litigation expense that would
result from another lengthy contested rate case proceeding before the RRC as well as
the prosecution of the appeals in various courts of the GRIP surcharges and the two
previous system-wide rate decisions; and
WHEREAS, ACSC desires to recoup certain costs it previously incurred in
connection with GRIP-related proceedings (costs which Atmos contends are not
reimbursable rate case expenses under the Texas Utilities Code), as well as costs
incurred in connection with this proceeding; and
WHEREAS, on October 18, 2007, more than 60 ACSC members met in Arlington
`�� with officers and executives of Atmos to discuss various issues, including rate making,
resulting in a mutual pledge to work toward settlement; and
WHEREAS, ACSC members designated a Settlement Committee made up of
ACSC representatives to work with ACSC attorneys and consultants to formulate and
review reasonable settlement positions to resoive outstanding matters with Atmos,
including the pending rate increase request; and
WHEREAS, the Settlement Committee and lawyers representing ACSC met
several times with the Company to negotiate a Settlement Agreement resolving the
issues raised in the Company's Statement of Intent filing as well as all outstanding
appeals of the two prior rate cases and various GRIP filings; and
WHEREAS, the Settlement Committee, as well as ACSC lawyers and
consultants believe existing rates are unreasonable and should be changed; and
WHEREAS, the ACSC Executive Committee recommends ACSC members
approve the negotiated Settlement Agreement and attached tariffs; and
WHEREAS, the attached tariffs provide for an expedited rate review process as a
substitute to the current GRIP process instituted by the Legislature; and
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ORD. NO. 2
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WHEREAS, the expedited rate review process as provided by the Rate Review �
Mechanism Tariff eliminates piecemeal ratemaking, the ACSC's major objection to the
current GRIP process; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
Settlement Agreement 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
Statement of Intent or any associated appeals of a decision entered by the Railroad
Commission regarding the Company's request to increase rates; and
WHEREAS, the Settlement Agreement as a whole is in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, 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 Settlement Agreement, which is
attached hereto and incorporated herein as Attachment "A", is in the public interest and ,,,�
is hereby endorsed in all respects.
Section 3. That existing rates for natural gas service provided by Atmos Mid-
Tex are unreasonable and new tariffs, which are attached hereto and incorporated
herein as Attachment "B", are just and reasonable and are hereby adopted.
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 ACSC Cities determine any rates, revenues, terms and
conditions, or benefits resulting from a Final Order or subsequent Settlement
Agreement approved in any proceeding addressing the issues raised in Atmos'
Statement of Intent would be more beneficial to the ACSC Cities than the terms of the
attached Settlement Agreement, then the more favorable rates, revenues, terms and �'
ORD. NO. 3
conditions, or benefits shall additionally accrue to the ACSC Cities. However, approval
J� of the attached Rider RRM, Rider CEE, Rider GCR and the Rider WNA shall not be
affected by the application of the provisions contained in this section, it being the
understanding and the intent of the parties hereto that such tariffs shall continue
according to their terms.
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 March 1, 2008.
Section 9. That a copy of this ordinance shall be sent to Atmos Mid-Tex, care
of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway,
Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at
Lloyd Gosselink Blevins 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 19th day of February, 2008.
APPROVED:
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ATTEST:
APPROVED AS TO FORM:
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ORD. NO. 4
ATTACHMENT A
STATEMENT OF INTENT FILED BY ATMOS ENERGY,CORP.,MID-TEX DIVISION �
ON SEPTEMBER 20,2007
SETTLEMENT AGREEMENT
This Settiement Agreement is entered into by and between Atmos Energy Corp.("Atmos"
or "the Company") and the Atrnos Cities Steering Committee {"ACSC"), whose members
include the Cities of Abilene, Addison, Allen, Alvarado, Angus, Anna, Argyle, Arlington,
Bedford, Be[lmead, Benbrook, Beverly Hills, Blue Ridge, Bowie, Boyd, Bridgeport,
Brownwood, Buffalo, Burkburnett, Burleson, Caddo Mills, Carrollton, Cedar Hill, Celeste,
Celina, Cisco, Cleburne, Clyde, College Station, Colleyville, Colorado City, Comanche,
Cooiidge, Coppetl, Corinth, Corral City, Crandall, Crowley, Dalworthington Gardens, Denison,
DeSoto, Dunca�ville, Eastland, Edgecliff Village, Emory, Ennis, Euless, Everman, Fairview,
Fazmers Branch, Farmersville, Fate, Flower Mound, Forest Hill, Fort Worth, Frisco, Frost,
Gainesville, Gariand, Garrett, Grand Prairie, Grapevine, Haltom City, Harker Heights, Haskell,
Haslet, Heath, Hewitt, Highland Park, Highland Village, Honey Grove, Hurst, Iowa Pazk, Irving,
Justin, Kaufman, Keene, Keller, Kemp, Kcnnedale, Kerrville, Killeen, Krum, Lakeside, Lake
Worth, Lancaster, Lewisville, Lincotn Park, Little Elm, Malakoff, Mansfield, McKinney,
Melissa, Mesquite, Midlothian, Murphy, Newark, Nocona, North Richland Hills, NorthIake, Oak
Leaf, Ovilla, Palestine, Pantego, Paris, Parker, Pecan Hill, Plano, Ponder, Pottsboro, Prosper,
� Putnam, Quitman, Red �ak, Reno (Parker County), Richardson, Richland Hills, Roanoke,
Robinson, Rockwall, Roscoe, Rowlett, Sachse, Saginaw, Seagoville, Sherman, Snyder,
Southlake, Springtown, Stamford, Stephenville, Sulphur Springs, Sweetwater, Temple, Terrell,
The Colony, Throckmorton, Tyler, University Park, Venus, Vernon, Waco, Watauga,
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Waxahachie, Westlake, Westworth Village, Whitesboro, White Settlement, Wichita Falls,
Woodway,and Wylie(collectively"ACSC Cities"}.
WHEREAS, the Settlement Agreement resolves all issues relating to the Atmos Energy
Corp., Mid-Tex Division Statement of Intent filed with the ACSC Cities on September 20,2007,
in a manner that Atmos and ACSC ("the Signatories") believe is consistent with the public
interest, and the Signatories represent diverse interests;
WHEREAS, the Signatories believe that a fully contested hearing in the case would be
tiine-consuming and entail substantial additional expense for all parties and that the public
interest will be served by adoption of an ordinance consistent with the Settlement Agreement;
NOW, THEREFORE, in consideration of the mutual agreements and covenants
established herein, the Signatories, through their undersigned representatives, agree to and
recommend for approval by the ACSC Cities the following Settlement Terms as a means of fiilly
resolving all issues raised in the September 20, 2007 Statement of Intent filed by Atmos on
behalf of its Mid-Tex division:
Settlement Terms
l. Atmos and the ACSC Cities agree to the rates, terms and conditions reflected in the
tariffs attached to this Settlement Agreement as Exhibit A. Said tariffs should allow
Atmos an additional $10 million in annual revenue by implementation of rates shown in
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SETTLEMENT AGREEMENT
STATEMENT OF TNTENT FILED BY ATMOS ENERGY,CORP.,
MID-T'EX DIVISION ON SEPTEMBER 20,2007
the proof of revenues attached as Exhibit B. Atmos and the ACSC Cities further agree
�`` tfiat the rates, terms, and conditions reflected in Exhibit A to this Settlement Agreement
comply with the rate-setting requirements of Chapter 104 of the Texas Utilities Code.
� The gas rates, terms and condirions established by this Settlement Agreement shall be
effective for bills rendered on or after March 1, 2008.
2. The net plant amounts shown in the attached Exhibit B aze reasonable for the plant that is
used and useful in providing gas utility service.
3. Included as part of Exhibit A is a Rate Review Mechanism ("Rider RRM") that provides
for an annual rate adjustment to reflect changes in billing determinants, operating and
maintenance expense, depreciation expense, other taxes expense, and revenues as well as
changes in capital investment and associated changes in gross revenue related taxes.
Atmos agrees that effective with the implementation of the first RRM rate adjustment,
Ahnos shall file with the ACSC Cifies a revised Rate R-Residential Sales Tariff to reduce
the eustomer charge per bill from $10.69 per month to $7.00 per month and to increase
the volumetric portion of the rate (shown as $1.271 in Exhibit A) to the appropriate level
to reflect reduction in customer charge frorn $10.69 to $7.00, as well as to reflect any
change resulting from the R.RM implementation. The first RR.M rate adjustment is
expected to occur October 1, 2008. Atmos and the ACSC Cities agree that following the
initial RRM adjus�nent any subsequent implementation of RRM adjustments shall be
supporked as described in the Rider RRM, and shall limit changes to residential and
commercial customer chazge to no more than 20%. Further, the parties agree that any
approved adjustment in excess of the 2Q% Iimitation on the residential and commercial
�"`�"` customer charge shall be recovered through the volumetric portion of the rate.
. 4. With respect to the RRM, Atmos and the ACSC Cities agree that the rate increase
limitations set forth in Rider RRM under Calcuiation of Rate Adjustment, subpart (c)
shall not preclude Atmos from recovering any excluded costs during a subsequent
Evalua.tian Period in which the 5% limitation for O&M expenses or net plant investment,
respectively, is not reached or in a subsequent Statement of Intent case. To the extent
that Atmos seeks to recover any excluded costs during a subsequent Evaluation Period in
which the 5°/a limitation for O&M expenses or net plant investment, respectively, is not
reached or in a subsequent Statement of Intent case,Atmos shall identify these costs as a
. specific line item in the schedule accompanying the RRM ra.te adjustment filing.
5. With respect to the RRM, Atmos further agrees to pay all reasonable and necessary
expenses of each entity having original jurisdiction that are incurred to review the
Company's annual RRM filings. Atmos further agrees that in calculating the proposed
rate for any Rate Effective Period, the Company shall not include: (1) any extemal legal,
expert, or consultant costs to prepaze and/or provide supportive information related ta its
filing; or(2)reimbursements to original jurisdiction entities.
6. Notwithstanding pazagraph 5 of this Settlement Agreement, Atmos and ACSC agree that
in the event of an appeaI of an original jurisdiction entity's decision regazding a proposed
_._ RRM adjustment, recovery of rate case expenses shall be determined accarding to
� Chapters 103 and 104, 'I�x. UTTL. CODE ANN. Further, in the event of such appeal(s),
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SET'FLEMENT AGREEMENT
STATEMENT OF MTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DIVISION ON SEPTEMBER 20,2007
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Atmos shall recover any reimbursement made to the original jurisdiction entity through a
surcharge to customer rates whether such reimbursements are made during the initial
review periad or appeal period.
7. Atmos agrees that it will make no filings on behalf of its Mid-Tex division under the
provisions of`I�x.UTIL. CODE ANN. § 104.301 while the R.ider RRM is in place, and any
such filings pending at the time the RRM is approved will be trued-up for revenue and
rate base components prior to implementation of the annual RRM. In the event that a
regulatory authority fails to act or enters an adverse decision regarding the proposed
annual RRM adjustment, the Railroad Commission of Texas shall, pursuant to the
provisions of the Texas Utilities Code, have exclusive appellate jurisdiction to review the
action or inaction af the regulatory authority exercising exclusive original jurisdiction
over the RRM request. In addition, the Signatories agree that this Settlement Agreement
shall not be construed as a waiver of the ACSC Cities' right to initiate a show cause
proceeding or the Company's right to file a Statement of Intent under the provisions of
the Texas Utilities Code.
8. Atmos and the ACSC Cities commit that during the Initial Implementation Period, as
defined in the RRM tariff, Atmos and the ACSC Cities will not devote resources or
efforts to advocate statutory changes involving rate stabilization mechanisms or the Gas
Reliability Infrastructure Plan that is currently codified under TEx.UT�L.Co�E §104301.
9. Atmos and the ACSC Cities agree that the gas cost portion of uncollectible expense shall ,�
be recovered through the Company's Rider GCR rather than through base rates. The
change in accounting for the gas cost portion of uncollectible expense (including both the
accrual of expense and write-off of accaunts) shall become effective with the
implementation of the first RRM rate adjustment. The first RRM rate adjustment is
expected to occur October 1, 2Q08. In calculating the rate for the first Rate Effective
Period, the Company shall utilize the same methodology as used in the Company's
September 20, 2007 Statement of Intent with the only modification being to exclude the
effects of the gas cost portion of uncollectible expense from the base rate calculation.
10. Atrnos and the ACSC Cities fwrther agree that expense associated with lost and
unaccountable gas shall, based on an annual period, be recoverable through the
Company's Rider GCR up to a maximum of five (5) percent of the quantity of inetered
gas, as provided under Commission Rule 7.5525, Lost and Unaccounted for Gas. Such
change sha11 be effective with the complete 12 month reporting period ending June 30, .
2008.
11. Included as part of Exhibit A to this Settlement Agreement is a new gas conservation
program taziff(R.ider CEE)that will be effective October l, 2008. Atmos and the ACSC
Cities agree that Atmos will fund $1 million of the allowable expenses incurred annually,
with a customer rate component providing the remainder $1 million of funding. All
customer-supplied funds will, prior to the commencement of the program,be used toward
program implementation efforts and, upon implementation, be applied directly to the gas
conservation materials and supplies. �
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SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DIVISION ON SEPTEMBER 20,2007
12. Atmos and the ACSC Cities agree that the Company's requested revision of its weather
` normalization adjustment ("WNA") mechanism is appropriate, as modified by ACSC,
and should be approved as set forth in E�chibit A to this Settlement Agreement.
Specifically, the revision excludes non-weather sensitive eommercial customers and
modifies the WNA mechanism to calculate the WNA adjustment based on weather
stations at a regional level rather than under the current practice of associating all
customers with a single weather location for purposes of determining the WNA
adjustment.
13. Atmos and the ACSC Cities agree that the three-yeaz gas cost review process that is
eurrently in effect for the Mid-Tex division should be etiminated. Atmos and the ACSC
Cities further agree to collaborate to establish an alternate process wherein the prudence
of gas costs recovered through the Rider GCR can be addressed. Until an agreed upon
replacement mechanism has been estabtished, the current gas cost review process shall
remain in effect,unless changed by order of the Commission.
. 14. It is the intention of the Signatories that the ACSC Cities receive the benefit of any
settlement agreement that Atmos enters into with ather entities arising out of GUD No.
9672 (consolidated cases) or any associated appeals of GUD No. 9672. Therefore, Atmos
agrees that if the rates, revenues, terms and conditions, or benefits accruing to the settling
entity would be more beneficial to the ACSC Cities than the terms of this Settlement
- Agreement,as determined by the ACSC Cities, such more favorable rates,revenues, terms
and conditions, or benefits shall additionally accrue to the ACSC Cities. Similazly, if the
Final Order in GUD No. 9672 or orders resulting from any associated appea.ls are
`"" determined by the ACSC Cities to result in rates, revenues, terms and conditions, or
benefits that are more benef cial than the terms or this Setttement Agreement, such more
favorable terms, revenues, terms and conditions shall additionally accrue to the ACSC
Cities. However, the Signatories agree that the approval of the Rider RRM, the Rider
WNA, the Rider CEE, and the Rider GCR, as shown in Exhibit A hereto, shall not be
affected by the application of the "most favored nations" provisions contained in this
paragraph, it being the understanding and the intent of the Signatories hereto that such
tariffs shall continue in effectiveness according to their terms. The Signatories further
. agree that the agreement reflected in pazagraph 10 of this Settlement Agreernent shall not
be affected by the application of the "most favored nations" provisions contained in this
paragraph.
15. Atmos agrees to reimburse the ACSC Cities previously incurred rate case expenses
within 30 days of the date the last ACSC City ordinance appraving this Settlement
Agreement is entered, and any additional rate case expenses incurred thmugh the date of
the entry of the last ACSC City ordinance,within 30 days of receipt of invoices.
16. Atmos agrees to reimburse the ACSC Ciries for expenses associated with all 2UO3, 20Q4,
2005, and 2006 GRIP fiiings and related court appeals up to $567,213 within 30 days of
the date the last ACSC City ordinance approving this Settlement Agreement is entered.
17. Ahnos and the ACSC Cities further agree that all expenses reimbursed pursuant to
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paragraphs 15 and 16 of this Settlement Agreement, as well as a11 reasonable rate ease
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SETfLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DIYISION ON SEPTEMBER 20,2007
expenses directly incurred by Atmos in connection with the September 20, 2007 �
Statement of Intent filed on behaIf of its Mid-Tex Division through February 29, 2008,
• shall be recoverable through a surcharge to customer rates within the ACSC Cities. With
respect to the rate case expenses directly incurred by Atmos, the amount to be recovered
through the surcharge to customers within the ACSC Cities shall be determined on a pro
rata basis, consistent with the ACSC Cities' percentage of total Mid-Tex residential load
(52%). The surcharge shall be recovered over a twelve month period beginning in April
of 20(?8.
18. Within 3Q days of the date the last ACSC City ordinance approving this Settlement
� Agreement is entered, Atmos and the ACSC Cities agree to file a Notice of Non-Suit or
Motion to Dismiss,whichever is applicable, in the following proceedings:
Cause No. D-1-GN-06-000337 (Consolidated), Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. This
case includes the following cases:
a. Cause No. D-1-GN-06-000333;Atmos Cities Steering Committee v. The
• Railroad Commission of Texas,In the 345th District Court, Travis County,Texas.
b. Cause No. D-1-GN-06-000334;Atmos Cities Steering Committee v. The
Railroad Commission of Texas,In the 345th District Court, Travis County,Texas.
c. Cause No. D-1-GN-06-000335;Atmos Cities Steering Committee v The �
Railroad Commission of Texas, In the 345th District Court,Travis County,Texas.
d. Cause No. D-1-GN-06-000336;Atmos Cities Steering Committee v. The
Railroad Commission of Texas,In the 345th District Court, Travis County,Texas.
e. Cause No. D-1-GN-06-000332;Atmos Cities Steering Committee v. The
Railroad Commission of Texas,In the 345th District Court, Travis County,Texas.
f. Cause No. D-I-GN-OS-Q02182;Atmos Cities Steering Committee v. The
Railroad Commission of Texc�.s, In the 345th District Court, Travis County,Texas.
g. Cause No. D-1-GN-06-004206; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County,Texas.
Cause No. D-1-GN-06-001612; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court,Travis CounTy,Texas.
Cause No. D-1-GN-06-001852; Atmos Cities Steering Committee v The Railroad
Commission of Texas,In the 345th District Court,Travis County,Texas.
Cause No. D-1-GV-06-000603; Atmos Cities Steering Committee v. The Railroad
' Commission of Texas, In the 345th District Court,Travis County,Texas.
Cause No. D-1-GV-06-000605; Atmos Cities Steering Committee v. The Railroad
Commission of Tezas, In the 345th District Court, Travis County,Texas. ��
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SETTLEMENT AGREEMENT
STATEMBNT OF INTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DIVISION ON SEPTEMBER 20,2007
Cause No. D-1-GN-06-004518; Atmos Cities Steering Committee v. The Railroad
��" Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause Number: 03-06-00580-CV;Atmos Energy Corporation, as successor by merger to
TXU Gas Company, Adlied Coalition of Cities, and City of Dallas v. Railroad
Commission of Texas; In the Third District Court of Appeals at Austin, Texas.
Cause No. D-1-GN-0'1-002871,Atmos Cities Steering Committee v. Railroad
Commission of Texas, In the 53rd District Court,Travis County, Texas.
Cause No. D-1-GN-07-002796,Atmos Energy Corporation v. Railroad Commission of
Texas, In the 250th District Court, Travis County, Texas.
Cause No. GVS-00875;Allied Coalition of Cities v. The Railroad Commission of Texas,
In the 345th District Court,Travis County, Texas.
19. Atmos and the ACSC Cities agree that Atmos may make all future filings, including, but
' not limited to, the annual RRM adjustment and any Statement of Intent filing with the
ACSC Cities on an electronic basis, rather than by paper copy. Electronic Filings shall
fulfi}l the requirements of TEx. U7�L. ConE §104.103. T'he appropriate ACSC Cities
representative shall provide a list of the ACSC Cities to Atmos by Mazch 1, 2008, and
agrees to notify Atmos of any change in the ACSC Cities Coalition within 30 days of the
effective date of any such change in order for Atmos to maintain adequate service
records. Atmos further agrees to make paper copies of filings available to any ACSC
City that requests a copy.
20. Atmos and the ACSC Cities agree that the ACSC Cities should pass ordinances
approving the Settlement Agreement and establish rates and services for the ACSC Cities
consisfent with those set forth in Exhibit A to this Settlement Agreement.
21. The Signatories agree that the terms af the Settlement Agreement aze interdependent and
indivisible, and that if any ACSC City enters an order that is inconsistent with this
Settlement Agreement, then any Signatory may withdraw without being deemed to have
� waived any procedural right or to have taken any substantive position on any fact or issue
by virtue of that Signatory's entry into the Settlement Agreement or its subsequent
withdrawal.
22. The Signatories agree that all negotiations, discussions and conferences related to the
- Settlement Agreement are privileged, inadmissible, and not reIevant to prove any issues
associated with the September 20, 2007 Statement of Intent filed by Atmos on behalf of
its Mid-Tex Division pursuant to Texas law.
23. The Signatories agree that neither this Setttement Agreement nor any oral or written
statements made during the course of settlement negotiations may be used for any
purpose other than as necessary to support the entry by the ACSC Cities of an order
implementing this Settlement Agreement.
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SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DIVISION ON SEP'TEMBER 20,2007
�.
24. The Signatories agree that this Settlement Agreement is binding on each Signatory only
for the purpose of settling the issues set forth herein and for no other purposes, and,
except to the extent the Settlement Agreement governs a Signatory's rights and
obligations for future periods, this Settlement Agreement shall not be binding or
precedential upon a Signatory outside this proceeding.
Z5. The Signatories agree that this Settlement Agreement may be executed in multiple
counterparts and may be filed with facsimile signatures.
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SETTLEMENT AGREEMENT
STA7'Eiv1ENT OF II`'T.GNT fTLED DY ATMOS LNERGl',(�C)lLP.,
�„,.,�,., MID-TEX DIVtSIO�f ON SEPTL•1�IDER 2U,2U07 WITII TI-If:ACSC CUALITION O[+C1TIE5
Agreed to this 9`�'day af Jamixry,2008.
AThI�S �NERGY CORP., MID-T�JC UNlSIOIv'
1� `
. By: .
1
Io A. Paris
President,Mid-Tex Division
_ - 8
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SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY,CORP.,
MID-TEX DNISION ON SEPTEMBER 20,2007
Agreed to this 9�'day of January, 2008. �
ATTORNEY FOR ATMOS CITIES STEERING COMMITTEE,
WHOSE MEMBERS 1NCLITDE THE CITIES OP ABILENE,
ADDISON, ALLEN, ALVAR.ADO, ANGUS, ANNA, ARGYLE,
ARLINGTON, BEDFORD, BELLMEAD, BENBROOK,
BEVERLY HILLS, BLUE RIDGE, BOWIE, BOYD,
BRIDGEPORT, BROWNWOOD, BUFFALO, BURKBURNETT,
BiJRLESON, CADDO MILLS, CARROLLTON, CEDAR HILL,
CELESTE, CELINA, CISCO, CLEBURNE, CLYDE, COLLEGE
STATION, COLLEYVILLE, COLORADO CITY, COMANCHE,
COOLIDGE, COPPELL, CORINTH, CORRAL CITY,
CRANDALL, CROWLEY, DALWORTHINGTON GARDENS,
DENISON, DESOTO, DUNCANVILLE, EASTLAND,
EDGECLIFF VILLAGE, EMORY, ENNIS, EULESS,
EVERMAN, FAIRVIEW, FARMERS BR.ANCH,
FARMERSVILLE, FATE, FLOWER MOUND, FOREST HILL,
FORT WORTH, FRISCO, FROST, GAINESVTLLE, GARLAND,
GARRETT, GRAND PR.AIRIE, GRAPEVINE, HALTOM CITY,
HARKER �IEIGHTS, HASKELL, HASLET, HEATH, HEWITT,
HIGHLAND �'?�RK, HIGHLAND VILLAGE, HONEY GROVE,
HURST, IOWA PARK, IRVING, NSTIN, KAUFMAN, KEENE,
KELLER, KEMP, KENNEDALE, KERRVILLE, KILLEEN,
KRUM, �,AKESIDE, LAKE WORTH, LANCASTER,
LEWISVILLE, LINCOLN PARK, LITTLE ELM, MALAKOFF,
MANSFIELD, MCKINNEY, MELISSA, MESQUITE,
MIDLOTHIAN, MURPHY, NEWARK, NOCONA, NORTH
RICHLAND HILLS, NORTHLAKE, OAK LEAF, OVILLA,
PALESTINE, PANTEGO, PARIS, PARKER, PECAN HILL,
PLANO, PONDER, POTTSBORO, PROSPER, PUTNAM,
QUITMAN, RED OAK, RENO (PARKER COUNT'Y),
RICHARDS4N, RICHLAND HILLS, ROANOKE, ROBINSON,
ROCKWALL, ROSCOE, ROWLETT, SACHSE, SAGINAW,
SEAGOVILLE, SHERMAN, SNYDER, SOUTHLAKE,
SPRINGTOWN, STAMFORD, STEPHENVILLE, SULPHUR
SPRINGS, �WEETWATER, TEMPLE, TERRELL, THE
�OLONY, THROCKMORTON, TYLER, UNIVERSITY PARK,
VENUS, VERNON, WACO, WATAUGA, WAXAHACHIE,
WESTLAKE, WESTWORTH VILLAGE, WHITESBORO,
WHITE SETTLEMENT, WICHITA FALLS, WOODWAY, AND
WYLIE.
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Geoffrey ay
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EXHIBI7 A
. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DMSION
RATE SCHEDULE: TABLE OF CONTENTS
APPLICABLE TO: Entire System REVISION DATE:
February 1, 2008
EFFECTIVE DATE: PAGE: 1 OF 1
. Febrvary t,20Q8
!. UTILtTY OPERATIONS
I!. CITIES AND COUNTIES SERVED
IIi. DEFINITIONS
lV. GAS SERVICE RATES b RIDERS
�tate R -Residential Sales
Rate C-Commerciaf Sales
Rate I-Industrial Sales
Rate T-Transportation
Rider CT—Competitive T�ansport
Rider GCR-Gas Cost Recovery
Rider F�-Franchise Fee Adjustment
� Rider SUR—Surcharges
- Rate LEP—Line Extension Policy
Rate M-Misceilaneous Charges
�"`�" Rider RA-Retention Adjustment
Rider TAX-Tax Adjustment
Rider WNA—Weather Normalization Adjustment
Rider RRM—Rate Review Mechanism
Rider CEE—Conservation and Energy Eificiency
V. SERVlCE RULES AND REGUTATIONS
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EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RATE SCNEDULE: Rate R-Residentia!Sales *�
APPUCABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
. February 1,2008
RATE R - RESIDENTtAL SALES
Application
Appiicable to Residential Customers for all natural gas p�ovided at one Point of Delivery and measured
through one meter.
Type oi Service
. Where service of the type desired by Customer is not already available at the Point of Delivery, additional
eharges and speaal contract arrangements between Company and Customer may be required prior to
service bei�g furnished.
Monthly Rate
Customer's monthiy bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Gharge Amount
Customer Charge per Bill $ 10.69 per month
Commodity Charge—AI1 Mcf $1.2710 per Mcf �
�;
Gas Eost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in aceordance with Part(a) and Part(b), respectively,of Rider GCR.
Weather Normaliza6on Adjustmen� Plus or Minus an amount for weather normalization
ca�ulated in accordance with Rider WNA.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustmenx P{us an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcha�ges: Plus an amount for surcharges ca�ulated in accorda�ce with the applicable rider(s).
Agreemertt
An Agreement for Gas Service may be required.
Notice
Service hereundeE 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. '
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EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
� MID-TEX D(VISION
RATE SCHEDULE: Rate C-Commercial Sales
'_�" APPLICABIE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 7
February 1,2008
RATE C - COMMERCIAL SALES
Application
Appiicab(e to Commercial Customers for ali natural gas provided at one Point of Delivery and measured
through one meter and to Industriai Customers with an average annual usage of less than 3,000 Mcf.
Type of Service
Vlthere servlce 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
senrice being fumished.
Manthty Rate
Customer's monthly bill witl be calculated by adding the folfowing Customer and Mcf charges to the
amounts due under the riders listed below:
: Charge � Amourrt
, Customer Charge per Bill $20.28 per month
Commodity Charge-All Mcf $ 0.7104 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 amounf for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calcutated in accordance with Rider
FF.
Tax Adjustment Plus an amount for iax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
� Agreement
An Agreement tor Gas Service may be required.
Notfce
Service hereunder and the rates for services prov9ded are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
l2
EXHIBIT A
TARiFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RATE SCHEDULE: Rate I -Industriai Sales
APPLICABLE TO: Enttre System REVISION:
DATE:
EFFECTNE DATE: PAGE: 1 OF 2
February t,2008
RATE I- INDUSTRIAL SALES
Application
Appticabfe to industrial Customers with a maximum daily usage (MDU) of tess than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
tndustriat Customers with an MDU equal to or greater than 3,500 MMBtu per day wili be provided at
Company's sole option and wili require special contcact arrangements between Company and Customer.
7ype 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 rnay be required prior to
• service being furnished.
Mo�thly 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 $344.75 per month
First 0 MMBtu to 1,500 MMBtu $0.2200 per MMBtu
Next 3,500 MMBtu $0.1600 per MMBtu
AH MMBtu over 5,000 MMBtu $0.0493 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 ar 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.
Tax Adjustmen� P(us 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 nofification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess af the stated level of curtailmenf or interruption, pay �
Company 200% of the midpoint price for the Katy point listed in Pfatts Gas Daily published fior the
. applicable Gas Day in the table entitled'Daily Price Survey.'
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EXHIBIT A
TARiFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
RATE SCHEDULE: Rate I-Industrial Sales
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
February 1, 2008
Replacement tndex
tn the event the 'midpoint° o� "common" price for the Katy point listed in Platfs Gas Daily in the table
entitied"Daily Price Survey" is no longer published, Company will calculate the appiicable imbalance fees
utilizing a daify price index recognized as authoritative by the natural gas industry and most ciosely
approximating the applicable index.
Agreement .
An Agreement fo�Gas Se�vice may be required.
Notice
Service hereunder and the rates for seroices 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 recenre service under Rate t, Customer must have the type of ineter required by Company.
Customer must pay Company a!!costs associated with the acquisi�on and instapation of the meter.
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EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
, RATE SCHEDULE: Rate T—Transportation
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 2
February 1, 2008
' RATE T-TRANSPORTATION
Appticatio�
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
transpoctatioa ot ali natural gas supplied by Customer or Customer's age�# at one Point of Delivery for
use i�Customer's faciiity.
Type of Se�vice
• Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special eontract arrangements between Company and Customer may be required prior to
service being iurnished.
Moathty 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 betow:
Charge Amount
. �
Customer Charge per Meter $344.75 per month ,��
First 0 MMBtu to 1,500 MMBtu $0.2200 per MMBtu
Next 3,500 MMBtu $0.1600 per MMBtu
AI1 MMBtu over 5,000 MMStu $0.0493 per MMBtu
Upstream Transpo�tation Cost Recovery: Plus an amount for upstream transportation costs in
• accordance with Part(b) oP 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 Adjustme�t Plus an amount for franchise fees calculated in accordance with Rider
FF.
� Tax Adjustment Plus an amount for tax calculated in acco�dance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees cha�ged to Customer under this Rate Schedule will be charged based on the quantities
determined under the app(icable Transportation Agreemenf and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
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• 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
entitied "Daily Price Survey' during such month, for the MMBtu of Customers monthly Cumulative
15 .
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
RATE SCHEDUIE: Rate T-Traasportation
�'� APPUCABLE TO: Entire System REVISION:
. DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
February 1, 2008
tmbalance, 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 Overpulf Fee
tlpon notification by Company of an event of curtailment o� interruption of Customer's deliveries,
Customer will� for each MMBtu del'rvered in excess of the stated �vei of curtailment or inter�uption, pay
Campany 200% of the midpoint price for the Katy point listed in Plafts Gas Daily published for the
applicable Gas Day in the tabie entitled"Daily Price Survey."
Replacement Index
• tn the event the "midpoint" or "common' price for the Katy point fisted in Platts Gas Daily in the tabte
entitled"Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utillzing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A Vansportation 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.
Speclal Conditions
In order to receive service under Rate T, customer must have the type of ineter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
16
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RIOER: Rider GCR-Gas Cast Recovery �
APPLICABLE TO: Entire System REVIStON:
DATE:
, EFFECTNE DATE: PAGE: 1 OF 3
October 1,2008
Rider GCR -Gas Cost Recoverv
Applicable ta 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 reeovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in SecCion (a) below and the pipeline cost caiculated
in Section (bj 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 ealculated on an Mcf basis. For Customers receiving service under Rate I,
monthly valume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to
recover actual costs.
The amount due for pipetine cost(Section(bj) is determined by multiptying the Pipeline Cost Factor
(PCF) by the Customers monthty vofume. For Customers receiving service under Rate R and Rate C,
monthly volume wilf be calculated on an Mcf basis. For Customers �eceiving service under Rate 1 and
�� Rate T, mc�nthly volume wiN be�calculated on an MRIIBtu basis and the quantities will be adjusted as
necessary ta recover actual costs.
(a)Gas Cost °"'�
Method of Calculat�on
The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor(GCRF),
as defermined with the following formula:
GCRF= Estimated Gas Cost Factor(EGCF)+Reconciliation Factor(RF)+Taxes(TXS)+Adjustrnents
(ADJ)
EGCF= Estimated cost of gas, (ncluding lost and unaccounted for gas aftributed to residential,
cammerciat,and i�dustrial sales,and any reconciliatio� balance of unrecovered gas costs, divided
by the esfimated totat residential, commercial,and industriat sales.
RF=Ca�ulated by dividing the difference between the Actual Gas Cost Incur�ed, incfusive of
interest, over the preceding finrelve-month period ended June 30 and the Actual Gas Cost Billed
over that same twelve-month period by the estimated total residential, commerciaf, and industrial
sales for the succeeding October through June billing months.
Aetua�Gas Cost Incurred=The sum of the costs booked in Atmos Energy Corp.,Mid-Tex Division
account numbers 80o through 8i3 and 858 of the NARUC Uniform System of Accounts,
including the net impact of injecting and withdrawing gas from storage. Also includes a
eredit 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 C�rtailment Overputl
Fees,
Actual Gas Cost Bi11ed=EGCF muldplied 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.
1'1
EXHlSIT A
� TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
AAID-TEX DNISION
RIDER: Rider GCR-Gas Cost Recovery
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECT{VE DATE: PAGE: 2 OF 3
: October 1,2008
Any amount remaining in the reconciliation balance after the conclusion of the period of
amortization will be maintained in the reconciliaiion 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,Totat Written
Off,Gas�ost Collected and Margin CotIected.
TXS=Any statutority 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.
(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:
Pi eline Cost Rate Class Allocation Facto� D
Rate R-Residential Service .634783
� Rate C-Commercial Service .3028�5
Rate 1-Industrial Service and Rate T-Trans rtation Service .062412
A=Adjustment applied in the current month to cor�ect tor the difference between the actual and
es�mated pipeline cost�evenue of the second preceding month,calculated by the formula:
A= R-{C=AZ),where:
R=Actual revenue received from the appticabon of the PP component in the second preceding
month.
�=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 cuRent billing month.
���
The PCF is calculated to the nearest 0.0001 cent.
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EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS EIdERGY CORP.,
MID-TEX DNISION
RlDER: Rider GCR-Gas Cost Recovery "`�"``'
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIYE DATE: PAGE: 3 OF 3
October 1, 2008
' 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.
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EXHIBIT A
TAR(FF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DMSION
�;,� RIDER: Rider WNA—Weather No�malizatton AdJustment
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTNE DATE: PAGE: 1 OF 3
, November 1, Z008
RIDER WNA—Weather Normalization Adiustment
Provisions for Adjustment
T'he 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
Adjvstrnent." The Weather Normalization Adjustment shall apply to all temperature sensitive residential,
and commerciat bitls based on meters read during t6e revenue months of November through April.
� Computation of Weather NQrmalization Ad'usi tment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Mcf by the following€ormula:
(HSFi x (NDD-ADD))
WNAF; = R�
(BLi + (HSFi x ADD) )
Where
i = any particular R�te Schedule or bitling classifica.tion within any snch
particular Rate Schedute that eontains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the i�rate schedule or
classification expressed in cents per Mcf
R� = base rate of temperature sensitive sales for the ith schedule or
classification approved by the entity exercising original jurisdiction.
HSF� = heat sensitive factor for the ith schedule or classification calculated as the
slope of the linear regression of average sales per bill(Mc�and actual
heating degree days by month for the test year by schedule or classification
ai�d weather station as part of the RRM filing.
NDD = billing cycle normal heating degree days cakulated 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(Mc�}and actual
heating degree days by month for the test year by schedule or classification
2Q
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RIDER: Rider WNA—Weather Normalization Adjustment ''��"�
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
November 1, 2008
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;�
Where q;,is the relevant sales quantity for the jth customer in ith rate schedale.
Filings with Entities Exercising Original Jurisdiction
. As part of its annuat RRM filing the Company will file (a)a copy of each computation of the
Weather Normatization Adjustment Factor,(b)a schedule showing the effective date of each such
Weather Normalization Adjustment,(c)a schedute 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 ctassification 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
, �led with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base Use/Heat Sensitivitv(HSF) Factors
Residential Commercial
Base use HSF Base use HSF
Weather Station Mcf Mcf/HDD Mcf Mcf/HDD
Abilene I.14 .Ol 31 8.11 .0631
Austin 1.31 .0136 18.05 .0669 �
. Dallas 1.57 .0185 18.08 .0925
Waco 1.20 .0138 10.97 .0606
�chita 1.27 .0147 11.58 .058 I
Falls
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EXHIB{T A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER: R1der WNA—Weather Normalization Adjustme�t
APPLICABLE TO: Entire System REViSION:
DATE:
EFfECTIVE �ATE: PAGE: 3 OF 3
November 1, 2008
Sampte WNAF Calculation:
(.4131 x (30-17) )
,1533 per Mcf = 1.2267 x
(1.24 + (.0131 x 17) )
Where
i = Residentia.! Single Block Rate Schedule
Ri = 1.2267 per MCF(Rate R-Fina( Order GUD No. 9670)
HSF� _ .0131 (Residentiai-Abilene Area)
NDD = 30 HDD(Simple ten-year average of Actual HDD for Abilene Area—9/15/06
— t 0/t 4/06)
a ADD — 17 HDD(Actual HDD for Abilene Area—9/15/06— t0/14/06)
Bli � 1.14 Mcf(Residential -Abilene Area)
22
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
�
RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFECTIVE DATE: PAGE: I of 5
February 1,2008
RIDER RRM—RATE REVIEW MECHANISM
Purpose:
This mechanism is designed to provide annuat eamings transparency. If,through the implementation of the
provisions of this mechanism, it is determined that rates should be decreased or increased,then rates will be
adjusted accordingly in the manner set forth herein. The rate adjustments implemented under this
mechanism will reflect annual changes in the Company's cost of service and rate base. This adjusiment
will be authorized for an Initial Implementation Period. With the conctusion of the finai rate adjustment,if
any,for the Initial Implementation Period, each entity having originat jurisdiction may revoke, amend, or
approve Subsequent Implementation Period(s)for,the mechanism.
Definitions
a) The Annaal Evaluation Date shall be the date the Company will make its annual filing under this
mechanism. The Annual Evaluation Date shall be no later than March 1,of each year. This filing shall be
effective in etectronic form where practicable. The initial filing shall be made March 31,2008.
b)Audited Financial Data shali mean the Company's books and records related to the Company's Mid-
Tex operating azea and shared services operations. Audited Financial Data shall not require the schedules �''
and information provided under this tariff to undergo a separate fmancial audit by an outside auditing firm
similar to the Company's anaaal financia!audit.
c) The Evaluation Perad is defined as the twelve month period ending December 31, of each calendaz
year. The inidal Evaluation Period shall be calendar year 2007.
� The Rate Effective Period is defined as the earlier of the twelve month period for which rates
determined under this mechanism will be in effect or subsequent rates are implemented. •
e)Per Connection Basis is defined as the average number of connections during the Evaluation Period.
�Initial Implementation Period is defined as the three(3)year period commencing with the Company's
filing under this mechanism for the calendaz year 2007,effective October 3,2008, and shall conclude with
the implementation of rate adjustments,if any,for the third Rate Effective Period.
g) Subsequeat Implementation Period is defined as any three(3)year period after the conclusion of the
Initial tmplementation Period.
h) Finat Order is defined as the most recent order establishing the Company's latest effective rates for the
area in which the mechanism is implemented,and shal]inctude municipal rate ordinances and resolutions.
Rate Review Mechanism
�''The Company shall file with each regulatory authority having original jurisdiction over the Company's
rates the schedules specified below for the Evaluation Period, with the filing to be made by the Annual
�
23
., .. w�:� �-�,����..�.,�,��„���,�.,.
EXHIBIT A _
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
� RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE T�: Entire Mid-Tex Division REVISION
DATE:
EFFECTNE DATE: PAGE: 2 of 5
February 1,2008
Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the
Company's Audited Financial Data,as adjusted, and provided in the same format as Atmos'rate filing with
• municipalities on September 20,2007,wil}include the fotlowing:
a) Company's actua}gross plant in service, accamulated depreciation, accumulated deferred income
taxes, inventory, working capital, and other rate base components. The ratemaking treatments,
principles, findings and adjustments included in the Final Order witl appty. Regulatory
adjustments due to prior regulatory rate base adjustment disallowances will be maintained where
applicable. Cash working capital will be calculated using the lead/lag days approved in the Final
Order.
b) The Company's depreciation expense, operating and maintenance expense, income taxes, and
� taxes other than ineome taxes. Depreciation rates will be those approved in the Final Order,or the
rate most recently approved. Ail calculation methodologies will be those approved in the Final
Order, or in the most recent order addressing the methodology. In addition, the Company shall
exctude from operating and maintenance expense the type of expenses related to employee
expense accounts disallowed in the GUD No.9670 Final Order.
c) Return on Equity(ROE}shall be maintained at 9.6%.
.,��t.,.
� Cost of debt will retlect actual cost. Capital struciure will be the actual Evaluation Period ending
ratio of long-term debt and equity,with percentage equity not to exceed the percentage established
in the Final Order in G.U.D.No.9670(48.1"/o equity).
e) All applicable accounting and pro forma adjustments along with all supporting workpapers.
� Pro-forma adjustments to update and annualize costs and revenue billing determinants for the Rate
Effective Period. ,
g} Pro-forma or other adjustments required to properly account for atypical,unusual, or nonrecwring
events.
h) Shared Services atlocation factors may be recalculated each year based on the latest component
factors,but the methodology used will be that approved in the Final Order.
Calculation of Rate Adjustment
a) The Company shall provide additional schedules indicating the following revenue
. deficiencylsufficiency calculations using the methodology accepted in the Final Order. These
schedules shal} identify the rate adjustments necessary for both a true-up of revenue for the
Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result
of these rate adjustments shall be reflected in the proposed new rates to be established for the Rate
Effecrive Period. tn calculating the required rate adjustments,such adjustments will be made pro-
ratably to the customer charge and usage charge based upon actual revenue generated,as adjusted
under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided,
,;�..
24
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
�.
RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE T4: Entire Mid-Tex Division REVISION
DATE:
EFFECTIVE DATE: PAGE: 3 of 5
Feb l,2008
however, that neither the Residential nor the Commercial customer charges may increase more
than 20%per year.
' b) [f Gompany's eamings during the Evaluation Period exceed 9.6%return on common equity, the
Company shall calcuiate an adjustment to rates to refund the revenue required to achieve a retum
on equity of 9.6°/a for the Evaluation Period. If Company's earnings during the Evaluation Period
are below 9.6%return on common equity, the Company shall calculate an adjustrnent in rates to
collect the additional revenue required to increase its return on equity for the Evaluation Period to
9.6%. The Company wilt calculate an adjustment for the Rate Effective Period to refund or collect
this difference.
c) T'he Company will adjust rates for the Rate Effective Period to include recovery of any known and
, measurable ehanges to operating and maintenance costs including, but not limited to, ail payroll
and compensation expense,all benefit expense,aU pension expense,insurance costs,materials and
supplies, bad debt costs, all medical expense,transportation and building and lease costs for the
Rate Effectivt Period. Additionally, utility plant for the Rate Effective Period will be established
by using the Evaluation Period ending balances, inctuding associated changes in depreciation and
amortization expense and taxes. In calculating the Company's Irnown and measurable changes for
prospective RRM adjustment purposes,the following limitations will apply,on a Per Connection
Basis. �,
_ ,,�,
1. Operating and Maintenance expenses for the Rate Effective Period,cannot increase more
� than 5% per connection per year without specific identification and justification. The
beginning Operation and Maintenance expense for the 2007 RRM fling(the initial filing)
will be St61 million.
2. Net plant investment for the Rate Effective Period cannot increase more than 5°/. per
connection per year withont specific identification. However, in performing a cap test to
verify compiiance, Company sha11 exclude any changes in net plant investment
associated with federal, state, or locat mandates related to safety, compliance, or road
moves.
d) The Company aiso shal(provide a schedute demonstrating the"proof of revenues"reIied upon to
calculate tfie proposed rate for the Rate Effective Period. The proposed rates shalt conform as
elosely as is practicable to the revenue allocation principles approved in the Final Order.
Attestation
A sworn statement shatl be filed by the Company's Chief Officer in Chazge of Mid-Tex Operations
; affirming that the fited schedules are in compliance with the provisions of this mechanism and are true and
correct to the best of his/her lrnowledge,information and belief. No testimony shall be filed.
�.
25
. � �-�� : �,����,,�-� �. . . � � _M
EXHIBIT A
TARIFF F�R GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
' RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
• EFFECTIVE DATE: PAGE:4 of 5
Febru l, 2008
Evaluation Proeedures
The regulatory authority having original jurisdiction over the Company's rates shall have ninery(90)days
to revie�+ the Company's filed schedules. The Company will be prepared to provide supplemental
information as may be requested to ensure adequate review by the relevant regutatory authority. The
Cornpany shall not unilaterally impose any limits upon the provision of supplemental information and such
information shaIl be provided within ten (t0) working days of the originai request. The regulatory
authority may propose any adjustments it determines to be required to bring the schedules into compiiance
with the above provisions.
During and following the ninety(90)day review period and a thirty(30)day response period,the Company
and the r�gulatory authority will work collaborativeIy and come to agreement on,the proposed adjustments
to the Company's schedule and proposed rates. Once agreement has been reached by the Company and the
regulatory authority,the regulatory authority shall authorize an increase or decrease to the Company's rates
so as to achieve the revenue levels indicated for both the Evaluation Period and Rate Effective Period. If,
at the end of the thirty (30) day response period, the Company and the regulatory authority have not
' reached agreement on the proposed adjustments,the Company shall have the right to appeal the regulatory
authoriry's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeal, the
Company shall have the right to implement the proposed RRM rate adjustment,subject to refund.
If approved by the entity exercising original jurisdiction,the rates established pursuant to the Rate Review
Mechanism for the first Rate Effective Period shall be effective on October l, 2008. 7'hereafter, rates
established pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as
provided herein,shall be effective on July 15 of each year.
Reconsideration and Appeal
Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under
Sections t02.001(b)and 103.021,et seq.,ofthe Texas Utilities Code(Vernon 2007).
otice
Notice of the annual Rate Review Mechanism filing shall be provided to all affected customers of the
� Atmos Mid-Tex Division in accordance with the provisions of this section no later than forty-five(45}days
after the Company makes its annual filing pursuant to this tariff. Company may provide notice either by
mailing or otherwise detivering the notice with its billing statements. Notice by mail sha11 be presumed to
be complete three days after the date of deposit of the paper upon which such notice is written,enclosed in
a post-paid,properly addressed wrapper,in a post office or official depository under the care of the United
States Postal Service. The notice to customers shall include the following information:
a) a descripdon of the proposed revision of rates and schedules;
b) the effect the proposed revisioa of rates is expected to have on the rates applicable to each
customer class and on an average bill for each affected customer;
�.-
26
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
�
RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFECTIVE DATE: PAGE: 5 of 5
February l,2008
e) the service area or areas in which the proposed rate adjustment would apply;
d) the date the proposed rate adjustment was filed with the regulatory authority;and
e) the Company's address, telephone number and website where information concerning the
proposed rate adjustment may be obtained.
�
�,
. 2,�
_...�, _�n�r�..;.� _ �.�.-��:.�,.�},�,;���.�...
EXH1817 A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
,�•�.
,:,� RIDER: Rider CEE—Conservatfon 8 Energy E�clency
APPLiCABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 7
February 1,2008
RIDER CEE—Conservation 8 Enerav Efficiencv
Purpose
Atmos Energy RAid-Tex is proposing to institute a complete Conservation & Energy Efficiency program
whict�wili offer assistance to qualified customer segments in reducing energy eonsumption and lowering
energy utility bills. The proposal is one where Atmos Energy shareholders wilt fund a percentage of the
allowable expenses incuned annuatly, with a customer rate component providing the remainder of the
funding. Following is a high-level, concept summary of the proposaf. 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 tv provide free energy savings materials and supplies to qualifying customers of Atmos
Mid-Tex. Quatified Customers wilt 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. lf it is determined that professional installation
capa6ili�es are necessary, the parties witl agree on labor assistance amounts.
Eli ibili
tow Income — Low-income rate-payers that qualify for heating bill assistance through LIHEAP
agencies and a[I 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 th�ough ATM call center or web-site.
Customer provides primary SSN which is verified through Social Security Administration. And account
holder thaf is or tums 65 years old in that year becomes eligible.
Fundin
Initiat program funding will be at iwo million dollars ($2,0OO,OQO). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dotlars($1,000,000.00) per year. lt is proposed that the program operate on an Octobe�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 wil! coordinate qualiftcation of customers, voucher distribution, subsequent
verification and ceimbursement of eligible expenditures and general program administration. Program
administration expenses will be funded from the annual approved budget.
Program audits will be conducted and the results provided to any interested party within 120 days of the
end of each program year to determine effectiveness.
28
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� 30
WP J-4
Page 1 of 3
ATMOS ENERGY CORP., MID-TEX DIVtSlON "�`"
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
. Line Description Total Reference
(a) (b) (c}
Rate R
1 Rate Characteristics:
2 Customer Charge $10.69 ccs
3
, 4 Consumption Charge ($/Mcfl $1.2710 ccs
5
6 Rider GCR Part A $7.5520 scheduie H
7 Rider GGR Part B $0.5990 scheduie�
8
9 Bi{(ina Units (1):
10 Bilis 17,144,647 WP J-1.1
11 Total MCF 76,798,906 WP_J-1.1
12
13 Present Revenue:
14 Customer Charge $ 183,276,276
15 Consumption Charge 97,611,410 ..�
16 Base Revenue $ 280,887,686
17 Rider GCR Part A 579,988,302
18 Ride�GCR Part B 46,003,459
19 Subtotat $ 906,879,447
20 Revenue Related Taxes 52,686,332
21
22 Totat Proposed Revenue- Rate R $ 959,565,779
23
24 Note 1: See Billing Determinants Study for details.
31 �.
_.. �,� �w.. �. .��� � � �.� _ ..�,��.,,��, �.�„��.�. �> .. �. . ..
WP J-4
Page 2 of 3
ATMOS ENERGY CORP., MID-TEX DIVISION
��� SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
Line Description Total Refe�ence
(a) (b) (c)
Rate C
1 Rate Characteristics:
� 2 Customer Charge $20.28 ccs
3
4 Cansurnption Charge ($/Mcf} $0.7104 Ccs
5
6 Rider GCR Part A $7.5520 Schedule H
7 Rider GER Part B $0.5001 Schedule i
8
9 Billinq Units (1):
� 10 Bills 1,471,279 vuP_�-1.2
11 Tofal MCF 49,665,131 wP�-�2
42
13 Present Revenue:
14 Customer Charge $ 29,837,538
15 Consumption Charge 35,282,409
16 Base Revenue $ 65,119,647
17 Rider GCR Part A 375,072,987
18 Rider GCR Part B 24,837,930
19 Subtotaf $ 465,030,564
20 Revenue Related Taxes 27,016,551
21
22 Totai Proposed Revenue- Rate C $ 492,047,115
23
24 Note 1: See Billing Determinants Study for details.
- 32
`-��
WP J-4
Page 3 of 3
, :�,,
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
Line Description Total Reference
(a) tb) (�)
Rate I �T
4 Rate Characteristics:
2 Eustomer Charge $344.75 ccs
3
4 Biock 1 ($/MMBTU) $0.2200 cCs
5 Biock 2 f$/MMBTU) $0.1600 CCS
6 Block 3 ($/MMBTU) $0.0493 cCs
7
• 8 Rider GCR PacE A $7.5520 scneduie H
9 Rider GCR Part B $0.2804 Schedule i
10
11 Consumption Characteristics:
12 Block t (First 1,500 MMBTU) 0.21691 ���
13 Block 2 (Next 3,50Q MMBTU ) 0.24651 ���
14 Block 3 (Over 5,000 MMBTU ) 0.53657 ���
15 -++�
� 16 Billin4 Units (1):
'k7 BiIIS 11,542 wP J-1.3
18 Block 1 9,694,939 WP_J-1.3
19 Block 2 11,018,084 WP J-1.3
20 Block 3 23,982,442 WP_J-1.3
24 Tofal MMBTU 44,695,465
22
� 23 Sales Volumes 2,858,579 WP_J-1.3
' 24
25 Present Revenue:
26 Customer Charge $ 3,979,105
27 Black 1 2,132,887
28 Block 2 1,762,893
29 Block 3 �,�g2,334
30 Base Revenue . $ 9,057,219
31 Rider GCR Part A 21,082,128
32 Rider GCR Part B 12,534,050
33 Subtotal $ 42,673,397
34 Revenue Related Taxes 2,479,166
35
36 Total Proposed Revenue- Rate 1&T $ 45,152,563
37
38 Note 1: See Bil{ing Determinants Study for details.
33
� ,
� i
. TARIFF FOR GAS SERVICE ATTACHMENT B ATMOS ENERGY CORP.,
MID-TEX DIVISION
� RATE SCHEDULE: TABLE OF CONTENTS
APPLICABLE TO: Entire System REVISION DATE:
February 1, 2008
EFFECTIYE DATE: PAGE: 1 OF 1
. February 1, 2008
I. UTILITY OPERATIONS
t!. GITIES AND COUNTfES SERVED
(Ii. DEFINITIONS
IV. GAS SERVlCE RA7ES &RIDERS •
Rate R-Residential Sales
Rate C-Commercial Sales
Rate 1-Industriai Sales
Rate T-Transportation
Rider CT—Competitive T�ansport �
� Rider GCR-Gas Cost Recovery
Rider FF-Franchise Fee Adjustment
� Rider SUR—Surcharges
Rate LEP—Line Extension Policy
Rate M-Misceilaneous Charges
° Rider RA-Retention Adjustment
Rider TAX-Tax Adjustmenf
Rider WNA—Weather Normatization Adjustment
Rider RRM—Rate Review Mechanism
Rider CEE—Conservation and Energy Efficiency
V. SERVICE RULES AND REGUTATIONS
°��.�
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RATE SCHEDULE: Rate R-Resldential Sales
APPLICABLE T0: Entire System REVtSION:
DATE:
EFFECTIVE aa►TE: PAGE: 1 OF 1
. February 1,2008
RATE R - RESIDENTIAL SALES
Apptication
Applicable to Residential Customers for all naturai gas provided at one Point of Delivery and measured
through one meter.
Type of Service
. Where service ot the type desired by Customer is not already available at fhe Point of Delivery, additional
cha�ges and special contract arrangements between Company and Customer may be required prior to
service being fumished.
Monthly Rate
Customer's monthly bifl wi(1 be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed betow:
Charge Amount
Customer Charge per Bill $ 10.69 per month
Com�dity Charge—A!I Mcf $1.2710 per Mcf '�
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in acco�dance with Part(a)and Part{b), respectively, of Rider GCR.
Weather tVormallzation 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 acco�dance with
Rider RRM.
Franchise Fee Adjustment Plus an amount for nanchise fees calculated in accordance with Rider
FF.
Tax Adjustmen� Plus an amount for tax calculated in accordance with Rider TAX.
Surcha�ges: Plus an amount for surcharges cafculated in accordance with the app(icab(e rider(s).
Agceement
An Agreement fo�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.
�
TARIFF FOR GAS SERVICE A7MOS ENERGY CORP.,
MID-TEX DIVISION
RATE SCHEDULE: Rate C-Commerclal Sales
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
February t, 2008
RATE C -COMMERCIAL SALES
Application
Applicable to Commetciat Customers for all natural gas provided at one Point of Delivery and measured
tt►rough one meter and to Industr�at Customers with an average annual usage of tess than 3,000 Mcf.
Type vf Service
Where service of the type desired by Customer is not already availabie at the Point of Delivery, additional
charges and special contract arrangements befween Company and Customer may be required prior to
servfce being fumished.
Monthfy 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 ` Amoun!
Custamer Charge per Bill $20.28 per month
Commodity Charge-All Mcf $ 0.7104 per Mcf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Rart(a)and Part(b}, respectively, of Rider GCR.
Weather Normat�zation 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.
Francfiise Fes Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustmen� Plus an amount for tax calculated in accordance with Rider TAX.
Sureharges: Plus an amount for surcharges catculated in accordance with the applicable rider(s}.
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the �ates for services provided are subject ta the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., „�
MID-TEX DNISION
RATE SCHEDULE: Rate I-lndustriai Sales
APPLtCABLE TO: Entire System REVISION:
DATE:
EFFECTNE DATE: PAGE: 1 OF 2
February 1,2008
RATE t-INDUSTRIAL SALES
Application
Appiicabie to Industrial Customers with a maximum daily usage (MDUj of less than 3,500 MMBtu per day
for all naturai gas provided at one Point of Delivery and measured through one meter. Service for
Industtial 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 speciat contract arrangements befween Company and Customer may be required prior to
• service being fumished.
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 $344.75 per month
First 0 MMBtu to 1,500 MMBtu $0.2200 per MMBtu
Next 3,500 MMBtu $0.1600 per MMBtu
All MMStu over 5,000 MMBtu $0.0493 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 acconiance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
. FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider 7AX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s}.
Curtailment Overpull Fee
Upon notfication by Company of an event of curtailment or interruption of Customers deliveties,
Customer wifl, for each MMBtu delivered in excess of the stated leve! of curtailment or interruption, pay ,,,�
Company 200°� of the midpoint price for the Katy point listed in Platfs Gas Daily published for the
applicable Gas Day in the table endtled"Daily Price Survey,"
..:._., , ��. � ��.�.,��. ,_,,�.� .�
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
� RATE SCHEDULE: Rate I-Industrial Sales
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 2 OF 2
February 1,2008
Replacement index
fn the event the "midpoint° or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled"Daiiy Price Survey'is no longer pubtished, Company wi8 calcuiate the app(icable 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 6e required.
Notice
Service hereunder and the rates for seroices provided are subject to the orders of regulatory bodies
- . having}urisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive seroice under Rate 1, Customer must have the type of ineter required by Company.
Customer must pay Company all costs associated with the acquisition and instatlation of the meter.
��.,,�
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
, RATE SCHEDULE: Rate T—Transportation �
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 2
February 1,2008
RATE T-TRANSPORTATtON
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
direc�tly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer} for the
transportation of all naturat gas supplied by Customer o� Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Senrice
Where service of the iype desired by Customer is not already available at the Point of Delivery, additional
charges and speciaf contract arra�gements between Company and Customer may be required prior to
service being fumished.
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 $344.75 per month
First 0 MMBtu to 1,500 MMBtu $0.2200 per MMBtu
Next 3,500 MMBtu $0_1600 per MMBtu
All MMBtu over 5,000 MMBtu $0.0493 per MMBtu
Upstream Transportation Cost Rec�very: 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 calcutated in accordance with Rider RA.
Franchise Fee Adjustmen� Plus an amount for franchise fees calculated in accordance with Rider
FF.
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
AI1 fees charged to Customer under this Rate Schedule wil! be charged based on the quantities
determined undes the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with rrx�ltiple Transportation Agreements for the purposes of such fees.
�.
Monthty 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 'Daiiy Price Sun�ey' during such month, for the MMBtu of Customers monthly Cumulative
��. ..�, . � ,-.� _ _ ,,�.,�, ���..�.,,-�.�
TARIFF FOR GAS SERVICE A7MOS ENERGY CORP.,
MID-TEX DIVISION
RATE SCHEDULE: Rate T-Transportation
`�`�'� APPLfCABLE TO: Entire System REVISION:
� DATE:
EFFEC7NE DATE: PAGE: 2 OF 2
February 1, 2008
Imbatance, as defined in the applicabie Transportation Agreement, at the end of each month that exceeds
10%of Customer's receipt quantities for the month.
Curtailment Overpult Fee
Upon notification by Company of an event of curtailment or interruption of Customer's detiveries,
Customer will, for each MMBtu detivered in excess of the stated level of curtailment or interruption, pay
Company 200°�6 of the midpoint price for the Katy point listed in P(atts Gas Daily published for the
appticable 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 P/atts 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 requi�ed. .
Not�ce
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 Rats T, customer must have the type of ineter required by Campany.
Customer must pay Company aIl cos�s associated with the acquisition and installation of the meter.
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVtSION
R1DER: Rider GCR-Gas Cast Recavery
APPUCABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 3
October 1,2008
Rider GCR -Gas Cost Recoverv
Applicable Co 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
(GGRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C,
monthly votume wiil be calculated on an Mcf basis. For Customers receiving service under Rate I,
monthly volume wili be calculated on an MMBtu basis and the quantities wiil be adjusted as necessary to
recover actual costs.
The amount due for pipeline cost(Section (b)) is determined by mu�iplying the Pipetine Cost Factor
(PCF)by the Custome�'s monthly volume. For Customers receiving service under Rate R and Rate C,
monthly volume wiil be ca�ulated on an Mcf basis. For Customers receiving service under Rate I and
Rate T, monthty volume will be calculated on an MMBtu basis and the quantities wiil be adjusted as
necessary to recover actual 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 formufa:
GCRF= Estimated Gas Cost Factor(EGCF)+ Reconciiiation Factor{RF)+Taxes (TXS}+Adjustments
(ADJ)
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.
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 residenfial, commercial, and industrial
sales for the succeeding October th�ough June billing months.
Actual Gas Cost Incurred=The sum of the costs booked in Atrnos Energy Corp.,Mid-Tex Division
account numbers 80o through 8ig and 858 of the NARUC 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 credif for amounts received as Imbalance Fees or Curtailraent Overpun
Fees.
Actual Gas Cost B�11ed=EGCF multiplied by the manthly volumes hilled to Residential,
Commercial and Industrial Sales customers,less the total amount of gas cost determined to have
been uncollectble and written offwhich remain unpaid for each month of the reconcaliation °"'�
period.
a .., n � , : : _ - ����.,�.���.. . :� �,.,.,,���.
- TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MiD-TEX DIVISION
RIDER: Rider GCR-Gas Cost Recovery
�}X APPLtCABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 2 OF 3
Ocfober 1,2008
Any amount remaining in the reconciiiation 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 Energ,y 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 CoIlectea.
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.
(b)Pipeline Cost
Method of Calculation
Each month, a Pipeline Cost Factor(PCF) is calculated separately for each Pipeline Cost Rate Class
tisted below. The formula for the PCF is:
`�"`V" PCF= PP/S, where:
PP=(P-R)x D,where:
P= Estimated monthly cost of pipefine 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 fotlows:
Pi eline Cost Rate Class Allocation Factor D
� Rate R-Residential Service .634783
Rate C-Commercial Service .302805
Rate I -Industrial Service and Rate T-Trans ortation Service .062412
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 pipefine 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 bitling month.
._�-
The PCF is calculated to the nearest 0.0001 cent
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
RIDER: Rider GCR-Gas Cost Recovery �
APPLICABL�TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 3 OF 3
October 1, 2008
,
' The Pipefine 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.
, _ �, s �. �,� „ ��
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER: Rider WNA—Weather Normalization Adjustment
APPI.ICABLE TO: Enti�e System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 3
, November 1, 2008
RIDER WNA—Weather Normalization Adiustment
Provisions for Adjustment
The base rate per Mcf(t,000,000 Btu) for gas service set forth in any Rate Schedules utilized by the
cities of the Mid-Tex Division service azea for determining normalized winter period revenues shall be
adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normaliza.tion
Adjustrnent." T'he Weather Normalization Adjustment shal) apply to all temperaiure sensitive residential,
and cornmereial bills based on meters read during the revenue months of November ihrough April.
� Com�utation of Weather Norma)ization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Mcf by the following formula:
(HSF� x (NDD-ADD))
WNAFi s Ri
(BL{ t (HSF� x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAF{ = Weather Normalizaiion Adjustment Factor for the i�h rate schedule or
classification expressed in cents per Mcf
' Ri = base rate of temperature sensitive sales for the i�schedule or
ctassification approved by the entity exercising original jurisdiction.
HSFi = heat sensitive factor for the i�schedule or classification calculated as the
slope of the lineaz regression of average sales per bill(Mc�and actual
heating degree days by month for the test year by schedvle or classification
and weather station as part of the RRM filing.
NDD = billing cycle normal heating degree days cakulated as the simple ten-year
average of adual heating degree days.
ADD = billing cycle actual heating degree days.
Bl� = base load sales for the ith schedule or classification calculated as the y-
intercept of the lineaz regression of average sales per bilt(NIc fl and actual
�
heating degree days by month for the test year by schedule or classification
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER: Rider WNA—Weather Normalizatlon Adjustment �
APPLICABLE T0: Entire System REVISION:
� DATE:
EFFECTIVE DATE: PAGE: 2 �F 3
November 1, 2008
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 qy
Where q;�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 fi1e (a)a copy of each computation of the
Weather Normatization Adjustment Factor,(b)a schedule showing the effective date of each such
Weather Norma[iza6on Adjustment,(c)a schedule showing the factors of values used in calculating
such Weather Normalization Adjustment and(d)a random sample and audit of thirly(30)actua(
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 Sensitivitv(HSF)Factors
Residential Commercial
Base use HSF Base use HSF
Weather Station Mcf Mcf/HDD Mcf Mcf/HD�
Abilene 1.14 .0131 8.11 .0631
Austin I.31 .0136 1 S.OS .0669
. Dallas 1.57 .0185 18.08 .0925
Waco 1.20 .013 8 10.97 .0606
Wichita 1.27 .0147 11.58 .0581
Fa1ls
�.
v �,_.:. ,.��� ��.�-� �,� ��.: . �,�.� �:.�
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DMSION
M:�-.�
RIDER: Rider WNA—Weather Normalization Adjustment
APPLICABLE TO: Entire System REVISION:
DATE:
� EFFECTIYE DATE: PAGE: 3 OF 3
Novrember 1, 2008
Sample WNAFy Calculation:
(.0131 x (30-17) )
.t 533 per Mcf = 1.2267 x
. (1.14 + (.0131 x 17) )
Where
i = Residential Single Block Rate Schedule
Ri = 1.2267 per MCF(Rate R-Final Order GUD No.9670)
HSF} _ .0131 (Residential-Abi(ene Area)
NDD = 30 HDD(Simple ten-year average of Actual HDD for Abilene Area—9/15/06
— 10l14/06)
J ADD = 17 HDD(Actual HDD for Abilene Area—9/15/06— 10/14/06)
Bt� = 1.14 Mcf(Residential-Abilene Area)
�
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
�
RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFECTIVE DATE: PAGE: 1 of 5
Feb 1, 2008
RIDER RRM—RATE REVIEW MECHANISM
Purroose:
This mechanism is designed to provide annual earnings transparency. If,through the implementation of the
provisions of this mechanisin, it is de2ermined that rates should be decreased or increased,then rates will be
adjust�d accordingly in the manner set forth herein. 'Ihe rate adjustments implemented under this
�echanism will reflect annual changes in the Company's cost of service and rate base. This adjustment
wilt be authorized for an Initial Implementation Period. With the conclusion of the final rate adjustment, if
any, for the Initial Imptementation Period, each entiry having original jurisdiction may revoke, amend, or
approve Subsequent Implementation Period(s)for,the mechanism.
Definitions
a) The Annuai Evafuation Date shall be the date the Company wilE rnake its annual fiting under this
mechanism. The AnnuatEva(uation Date shall be no later than March 1,of each year. This filing shall be
effective in etectronic form wherc practicable. The initial filing shalt be made March 31,2008.
b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid- ,,,�
Tex operating area and shared services operations. Audited Financial Data shall not require the schedules �
and information provided under this tariff to undergo a separate financial audit by an outside auditing firm °`�
similar to the Company's annual financial audit.
c) The Evaluation Period is defined as the twelve month period ending December 31, of each calendar
year. The initial Evaluation Period shatl be calendaz year 2007.
d} The Rate Effective Period is defined as the earlier of the twelve month period for which rates
determined under this mechanism will be in effect or subsequent rates are implemented. •
e)Per Connection Basls is defined as the average number of connections during the Evaluation Period.
fl Initial Imptementation Period is defined as the three(3)year period commencing with the Company's
filing under this mechanism for the calendar year 2007,effective October l,Z008, and shall conclude with
the imptementation of rate adjustments,if any,for the third Rate Effective Period.
g) Subsequent Imptementation Period is defined as any three(3)year period after the conclusion of the
lnitiat Imptementation Period.
h) Fina!Order is defined as the most recent order establishing the Company's latest effective rates for the
area in whicb the mechanism is implemented,and shali include municipa[rate ordinances and resolutions.
Rate Review Mechanism
The Company shall file with each regulatory authority having original jurisdiction over the Company's
rates the schedules specified below for the Evaluation Period, with the filing to be made by the Annual
�,
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DNISION
`�=�- RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFECTI�E DATE: PAGE: 2 of 5
Feb 1, 2008
Eualuation Date following the end of the Evatuation Period. The schedules, which will be based upon the
Company's Audited Financial Data,as adjusted,and provided in the same format as Atmos'rate fi(ing with
� municipalities on September 20,2007,will inciude the following:
a) Company's actua}gross plant in service, accumulated depreciation, accumulated deferred income
taxes, inventory, working capital, and other rate base components. The ratemaking treatments,
principles, findings and adjustments included in the Final Order will appiy. Regulatory
adjustments due to prior regulatory rate base adjustment disatlowances will be maintained where
applicable. Cash working capital will be catcutated using the lead/lag days approved in the Final
Order.
b} The Comparry's depreciation expense, uperating and maintenance expense, income taxes, and
taxes other than income taxes. Depreciation rates wip be those approved in the Final Order,or the
rate most recently approved. AII calculation methodologies will be those approved in the Final
�rder, or in the most recent order addressing the methodology. In addition, the Company shall
exclnde from operating and maintenance expense the type of expenses related to employee
expense accounts disallowed in the GUD No. 9670 Finai Order.
c) Return on Equity(ROE)shall be maintained at 9.6%.
_ d) Cost of debt will reflect actual cost. Capital structure will be the acival Evaluation Period ending
ratio of Iong-term debt and equity,with percentage equity not to exceed the percentage established
in the Fina!Order in G.U.D.No.9670(48.1%equity).
e) All applicable accounting and pro forma adjuslments along with all supporting workpapers.
� Pro-forma adjustments to update and annualize costs and revenue billing determinants for the Rate
Effective Period.
g) Pro-forma or other adjustments required to properly account for atypical,unusual,or nonrecurring
events.
h) Shared Services allocation factors may be recalculated each year based on the latest component
factors,but the methodology used will be that approved in the Final Order.
Calculation of Rate Ad ustment
a) The Company , sha11 provide additional schedules indicating the following revenue
defrciency/su�ciency calculations using the methodology accepted in the Fina1 Order. These
schedutes shall identify the rate adjustments necessary for both a true=up of revenue for the
Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result
of these rate adjustments shall be reflected in the proposed new rates to be establis6ed for the Rate
Effective Period. In calculating the required rate adjustments,such adjustments will be made pro-
ratably to the customer ehazge and usage charge based upon actual revenue generated,as adjusted
under the Company's approved Weather Norntalization Adjustment (WNA) Rider. Provided,
`���.
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
�
RIDER: Rider RRM—Rate Review Mechanism
APPLICABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFE�TIVE DATE: PAGE: 3 of 5
� February 1,2008
however, that neither the Residential nor the Commercial customer charges may increase more
than 20%per yesr.
� b) If Company's earnings during the Evaluation Period exceed 9.6% return on common equity,the
Company shatl catculate an adjustmeni to rates to refund the revenue required to achieve a return
on equity of 9.6%for the Evaluation Period. If Company's eamings during the Evaluation Period
are below 9.6%return on common equity,the Company shali catculate an adjustment in rates to
collect the additional revenue required to increasc its retum on equity for the Evaluation Period to
9.6°fo. The Company will calculate an adjustment for the Rate Effective Period to refund or collect
this difference.
c) The Company will adjust rates for the Rate Effective Period to include recovery of any known and
. measurable changes to operating and maintenance costs inclu�ing, but not timited to, all payroll
and eompensation expense,all benefit expense,all pension expense,insurance costs,materials and
supplies, bad debt costs, all medical expense, transportation and building and lease costs for the
Rate Effective Period Additionally,utility plant for the Rate Effective Period wi}i be established
by using the Evaluation Period ending balances,including associated changes in depreciation and
amortization expense and taxes. In caiculating the Company's lrnown and measurable changes for
prospective RRM adjustment purposes,the following limitations will apply,on a Per Connection
Basis.
1. Operaring and Maintenance expenses for the Rate Effective Period,cannot increase more
than 5% per connection per year without speciftc identification and justification. The
beginning Operation and Maintenance expense for the 2007 RRM filing(the initial filing)
will be S16i mitlion.
2. Net plant investment for the Rate Effective Period cannot increase more than 5% per
connection per year without specific identificallon. However, in performing a cap test to
verify compliance, Company shall exclude any changes in net plant investment
associated with federal, state, or local mandates related to safety, compliance, or road
moves.
d) The Company aiso shalT provide a schedule demonstrating the"proof of revenues"relied upon to
calculate the proposed rate for the Rate Effective Period. The proposed rates shall conform as
closeiy as is practicable to the revenue a(location principles approved in the Final Order.
tt statio
A sworn statement shall be filed by the Company's Chief Officer in Chazge of Mid-Tex Operations
affirming that the filed schedules are in compfiance with the provisions of this mechanism and are due and
correct to the best of his/her knowledge,information and belief. No testimony shal]be filed ,
�
TARIFF FOR GAS SERVICE ATMOS ENERGY COR.P.,
MID-TEX DIVISION
�_...- RIDE�: Rider RRM—Rate Review Mechanism
APPLI�ABLE TO: Entire Mid-Tex Division REVISION
DAT'E:
EFFECTNE DATE: PAGE: 4 of 5
Feb l, 240$
Evaluation-Procedures
The regulatory authoriry having original jurisdiction over the Company's rates shall have ninety(90)days
to review the Company's filed schedules. The Company witl be prepared to provide supplemental
inforrnarion as may be requested to ensure adequaie review by the relevant regulatory suthority. The
Company s6all�ot unitaterally impose any limits upon the provision of supplementa!informarion and such
information shall be provided within ten (10) working days of the original request. The regulatory
authority may propose�ny adjastments it determines to be required to bring the schedules into compliance
with the abave provisions.
Durin�and following the ninety(90)day review period and a thiriy(30)day response period,the Company
and the regulatory authority will work collaboratively and come to agreement on,the proposed adjustments
to the Company's schedule and proposed rates. Once agreement has been reached by the Campany and the
reguiatory authority,the regulatory authority shall authorize an increase or decrease to the Company's rates
so as to achieve the revenue levets indicated for both the Evaluation Period and Rate Effective Pe,riocf. ]f,
at the end of the thirty (30) day response period, the Company and the regulatory authority have not
reached agreemu�t on the proposed adjustments,the Company shall have the right to appeal the regulatory
authority's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeat, the
Company sha}1 have the eight to implement tha proposed RRM rate adjustment,subject to refund.
If approved by the cntity exercising original jurisdiction,the rates established pursuant to the Rate Review
J�� Mechanism for tfie first Rate Effective Period shall be effective on October 1, 2008. Thereafter, rates
estabtished pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as
provided herein,shall be effective on July 15 of each year.
Reconsideration and Appeal
(hders issued pursuant to this mechanism are ratemaking orders and shall be subject to appea! under
Sections 102.00 t@)and 103.021,et seq.,of the Texas Utilities Code(Vemon 2007).
otice
Notice of the annual Rate Review Mechanism filing shall be provided to all affected customers of the
Ahnos Mid-'fex Division in accordance with the provisions of this section no later than forty-five(45)days
after the Company makes its annual filing pursuant to this tariff. Comparry may provide notice either by
mailing or otherwise delivering the notice with its billing statements. Notice by mail shatl be presumed to
be comptete three days aRer the date of deposit of the paper upon which such notice is written,enclosed in
a post-paid,properly addressed wrapper,in a post office or official depository under the care of the United
States Posta!Service. The notice to customers sha11 inciude the following information:
a) a description of the proposed revision of rates and schedules;
b) the effect the proposed revision of rates is expected to have on the ratss applicable to each
customer ciass and on an average bill for each affected customer;
,,�,
TARIFF FOR GAS SERVICE � ATMOS ENERGY CORP.,
MID-TEX DNISION
�
RIDER: Rider RRM—Ra.te Review Mechanism -
APPLTCABLE TO: Entire Mid-Tex Division REVISION
DATE:
EFFECT�VE DATE: PAGE: 5 of 5 '
Febru l,2008
e) the service area or areas in which the proposed rate adjustment would appty;
d) the date the proposed rate adjustrnent was filed with the regulatory authoriry;and
e) the Company's address, telephone number and website where information concerning the
praposed rate adjustment may be obtained. �
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TARIFF FOR GAS SERYICE ATMOS ENERGY CORP.,
MID-TEX DIVISION
�� RiDER: Rider CEE—Conservation 8� Energy Efficiency
APPLICABLE TO: Entire System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
February 1, 2008
RIDER CEE—�onservation & Enerav Efficiencv
Pur ose
Atmos Energy Mid-Tex is proposing to institute a complete Conservation & Energy Efficiency program
which will offer assistance to qualified customer segments in reducing e�ergy consumption and lowering
energy utiiity bills. The proposal is one where Atmos Energy sharehotders wilt fund a percentage of the
allawable expenses incurred annually, with a customer rate component providing the remainder of the
funding. FoUowing is a high-(evel, 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.
Svnopsis:
Vouche� system to provide free energy savings materials and supplies to qualifying customers of Atmos
Mid-1'ex. �ualified 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 �ndertake efforts to enlist support from community groups, including its own Employee
Action Program, to assist customers with instailation. If it is determined that professionai installation
capabilities are necessary, the parties will agree on labor assistance amoun#s.
EI' ibifi
Low Encome — 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 o� web-site.
Customer provides primary SSN which is verified through Social Security Administrafion. And account
holder that is or tums 65 years old in that year becomes eligible.
Fundina
Initia{ program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dollars($t,000,000.00) per year. It is proposed that the program operate on an October 1 through
September 30 year, with benefits bsing capped at the two million doAar level for the initial program period.
Adminisfration:
A third-party administrato� will coordinate qualification of customers, voucher distribution, subsequent
verification and reimbursement of eligible expenditu�es and general program administration. Program
administraYron expenses witl be funded from the annuat approved budget.
Program audits will be conducted and the results provided to any interested party within 120 days of the
end of each program year to determine effectiveness.
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