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HomeMy WebLinkAboutRES 2018-072 RESOLUTION NO. 2018-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY'S 2018 RATE REVIEW MECHANISM FILINGS; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHED EXHIBIT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; APPROVING AN ATTACHED EXHIBIT REGARDING AMORTIZATION OF REGULATORY LIABILITY; REQUIRING THE COMPANY TO REIMBURSE ACSC'S REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS RESOLUTION WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND THE ACSC'S LEGAL COUNSEL WHEREAS, the City of Grapevine, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities") that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the RRM tariff was adopted by the City in a rate ordinance earlier this year; and WHEREAS, on about April 1, 2018, Atmos Mid-Tex filed its 2018 RRM rate request with ACSC Cities based on a test year ending December 31, 2017; and WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2018 RRM filing through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues identified in the Company's RRM filing; and WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $24.9 million on a system-wide basis ($17.8 million of which is applicable to ACSC members); and WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and WHEREAS, the Exhibit A rate tariffs incorporate the federal income tax rates that became effective January 1, 2018; and WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical benefits (Exhibit B) and WHEREAS, the settlement agreement establishes an amortization schedule for regulatory liability (Exhibit C); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses associated with RRM applications; and WHEREAS, all constitutional and statutory prerequisites for the approval of the ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this ordinance is in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1 . That all matters stated herein above are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the findings set forth in this Resolution are hereby in all things approved. Section 3. That the City Council finds that the settled amount of an increase in revenues of$24.9 million on a system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Tex's 2018 RRM filing, is in the public interest, and is consistent with the City's authority under Section 103.001 of the Texas Utilities Code. Resolution No. 2018-072 2 Section 4. That the existing rates for natural gas service provided by Atmos Mid- Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Exhibit A, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $24.9 million in revenue on a system-wide basis over the amount allowed under currently approved rates. Such tariffs are hereby adopted. Section 5. That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid-Tex's next RRM filing shall be as set forth on Exhibit B, attached hereto and incorporated herein. Section 6. That amortization of regulatory liability shall be consistent with the schedule found in attached Exhibit C attached hereto and incorporated herein. Section 7. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company's 2018 RRM filing. Section 8. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 9. That the meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 10. That if any one or more sections or clauses of this Resolution is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Resolution, and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. Section 11. That consistent with the City Ordinance that established the RRM process, this Resolution shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2018. Section 12. That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 18th day of September, 2018. APPROVED: William D. Tate Mayor Resolution No. 2018-072 3 ATTEST: (',RAPE L-120.6466-1 XJ � � m Tara Brooks Y � is City Secretary APPROVED AS TO FORM: City Attorney Resolution No. 2018-072 4 Exhibit A 1 Rate Tariffs Effective October 1 , 2018 i EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: R—RESIDENTIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 12 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 18.85 per month Rider CEE Surcharge $ 0.03 per month' Total Customer Charge $ 18.88 per month Commodity Charge—All Ccf $0.14846 per Ccf Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. 'Reference Rider CEE-Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2018. EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: C —COMMERCIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 13 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $43.50 per month Rider CEE Surcharge $ (0.03) per month' Total Customer Charge $43.47 per month Commodity Charge—All Ccf $ 0.09165 per Ccf Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part(b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. ' Reference Rider CEE-Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2018. EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I— INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 14 Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Meter $ 784.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.3312 per MMBtu Next 3,500 MMBtu $ 0.2425 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0520 per MMBtu Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table p 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. I EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I— INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 15 Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I— INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 16 Exhibit A The rates were effective for the following Cities on 3/15/2018: ABILENE DENISON KILLEEN ADDISON DENTON KRUM ALBANY DESOTO LAKE WORTH ALLEN DRAPER AKA CORRAL CITY LAKESIDE ALVARADO DUNCANVILLE LEWISVILLE ANGUS EASTLAND LINCOLN PARK (ANNEXED WITH LITTLE ELM) ANNA EDGECLIFF VILLAGE LITTLE ELM ARGYLE EMORY LORENA ARLINGTON ENNIS MADISONVILLE AUBREY EULESS MALAKOFF AZLE EVERMAN MANSFIELD BEDFORD FAIRVIEW MCKINNEY BELLMEAD FARMERS BRANCH MELISSA BENBROOK FARMERSVILLE MESQUITE BEVERLY HILLS FATE MIDLOTHIAN IIII BLOSSOM FLOWER MOUND MURPHY BLUE RIDGE FOREST HILL NEWARK BOWIE FORNEY NOCONA BOYD FORT WORTH NORTH RICHLAND HILLS BRIDGEPORT FRISCO NORTHLAKE BROWNWOOD FROST OAK LEAF BUFFALO GAINSVILLE OVILLA BURKBURNETT GARLAND PALESTINE BURLESON GARRETT PANTEGO CADDO MILLS GRAND PARAIRIE PARIS CANTON GRAPEVINE PARKER CARROLLTON GUNTER PECAN HILL CEDAR HILL HALTOM CITY PETROLIA CELESTE HARKER HEIGHTS PLANO CELINA HASKELL PONDER CENTERVILLE HASLET POTTSBORO CISCO HEWITT PROSPER CLARKSVILLE HIGHLAND PARK QUITMAN CLEBURNE HIGHLAND VILLAGE RED OAK CLYDE HONEY GROVE RENO (PARKER COUNTY) COLLEGE STATION HURST RHOME COLLEYVILLE IOWA PARK RICHARDSON COLORADO CITY IRVING RICHLAND COMANCHE JUSTIN RICHLAND HILLS COOLIDGE KAUFMAN RIVER OAKS COPPELL KEENE ROANOKE CORINTH KELLER ROBINSON CRANDALL KEMP ROCKWALL CROWLEY KENNEDALE ROSCOE DALWORTHINGTON GARDENS KERRVILLE ROWLETT EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I—INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 17 Cities with Rate Effective 3/15/2018 (Continued) ROYSE CITY SULPHUR SPRINGS WATAUGA SACHSE SWEETWATER WAXAHACHIE SAGINAW TEMPLE WESTLAKE SANSOM PARK TERRELL WESTOVER HILLS SEAGOVILLE THE COLONY WHITE SETTLEMENT SHERMAN TROPHY CLUB WHITESBORO SNYDER TYLER WICHITA FALLS SOUTHLAKE UNIVERSITY PARK WOODWAY SPRINGTOWN VENUS WYLIE STAMFORD VERNON STEPHENVILLE WACO The rates were effective for the following Cities on 4/01/2018: ABBOTT BRUCEVILLE-EDDY DEPORT ALBA BRYAN DETROIT ALMA BUCKHOLTS DODD CITY ALVORD BUFFALO GAP DOUBLE OAK ANNONA BURNET DUBLIN ANSON BYERS EARLY ARCHER CITY CALDWELL ECTOR ATHENS CALVERT EDOM AURORA CAMERON ELECTRA AUSTIN CAMPBELL EMHOUSE AVERY CARBON EUSTACE BAIRD CASHION COMMUNITY EVANT BALCH SPRINGS CEDAR PARK FAIRFIELD BALLINGER CHANDLER FERRIS BANDERA CHICO FRANKLIN BANGS CHILDRESS FRANKSTON BARDWELL CHILLICOTHE FREDERICKSBURG BARRY CLIFTON GATESVILLE BARTLETT COCKRELL HILL GEORGETOWN BARTONVILLE COLEMAN GLEN ROSE BELLEVUE COLLINSVILLE GLENN HEIGHTS BELLS COMMERCE GODLEY BELTON COMO GOLDTHWAITE BENJAMIN COOPER GOODLOW BERTRAM COPPER CANYON GORDON BLACKWELL COPPERAS COVE GOREE BLANKET CORSICANA GORMAN BLOOMING GROVE COVINGTON GRANBURY BLUE MOUND COYOTE FLATS GRANDVIEW BLUM CRAWFORD GRANGER BOGATA CROSS ROADS GREENVILLE P BONHAM CUMBY GROESBECK BREMOND DAWSON GUSTINE BRONTE DECATUR HAMLIN BROWNSBORO DELEON HAMILTON EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I— INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 18 Cities with Rate Effective 4/01/2018 (Continued) HAWLEY MALONE RANGER HEARNE MANOR RAVENNA HEATH MARBLE FALLS RENO (LAMAR COUNTY) HEBRON MARLIN RETREAT HENRIETTA MART RICE HICKORY CREEK MAYPEARL RIESEL HICO MCGREGOR RIO VISTA HILLSBORO MCLENDON-CHISHOLM ROBERT LEE HOLLAND MEGARGEL ROBY HOLLIDAY MERIDIAN ROCHESTER HOWE MERKEL ROCKDALE HUBBARD MEXIA ROGERS HUTCHINS MIDWAY ROSEBUD HUTTO MILES ROSS IMPACT MILFORD ROTAN IREDELL MILLSAP ROUND ROCK ITALY MOBILE CITY ROXTON ITASCA MOODY RULE JEWETT MORAN RUNAWAY BAY JOSEPHINE MORGAN SADLER JOSHUA MUENSTER SAINT JO KERENS MUNDAY SAN ANGELO KNOLLWOOD MURCHISON SAN SABA KNOX CITY NEVADA SANCTUARY KOSSE NEW CHAPEL HILL SANGER KURTEN NEWCASTLE SANTA ANNA LACY-LAKEVIEW NOLANVI LLE SAVOY LADONIA NORMANGEE SCURRY LAKE DALLAS NOVICE SEYMOUR LAKEPORT OAK POINT SHADY SHORES LAMPASAS OAKWOOD SOMERVILLE LANCASTER O'BRIEN CO-OP GIN SOUTH MOUNTAIN LAVON OGLESBY SOUTHMAYD LAWN OLNEY STAR HARBOR LEANDER PALMER STOCKTON BEND LEONA PARADISE STRAWN LEONARD PECAN GAP STREETMAN LEXINGTON PENELOPE SUN VALLEY LINDSAY PFLUGERVILLE SUNNYVALE LIPAN PILOT POINT TALTY LITTLE RIVER ACADEMY PLEASANT VALLEY TAYLOR LLANO POINT TEAGUE LOMETA POST OAK BEND TEHUACANA LONE OAK POWELL THORNDALE LONGVIEW POYNOR THORNTON • 0 LORAINE PRINCETON THRALL LOTT PUTNAM THROCKMORTON LUEDERS QUANAH TIOGA MABANK QUINLAN TOCO ■ EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I— INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 19 Cities with Rate Effective 4/01/2018 (Continued) TOM BEAN VALLEY VIEW WHITNEY TRENT VAN ALSTYNE WILMER TRENTON WALNUT SPRINGS WINDOM TRINIDAD WEINERT WINTERS TROY WEST WIXON VALLEY TUSCOLA WESTWORTH VILLAGE WOLFE CITY TYE WHITEHOUSE WORTHAM VALLEY MILLS WHITEWRIGHT YANTIS I EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF blab APPLICABLE AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 16 Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 784.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.3312 per MMBtu Next 3,500 MMBtu $ 0.2425 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0520 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part(b) of Rider GCR. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of(i) $0.10 per MMBtu, or(ii) 150% of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities for the month. EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 17 Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION IP RATE SCHEDULE: T—TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF lbs. DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 18 Exhibit A The rates were effective for the following Cities on 3/15/2018: ABILENE DENISON KILLEEN ADDISON DENTON KRUM ALBANY DESOTO LAKE WORTH ALLEN DRAPER AKA CORRAL CITY LAKESIDE ALVARADO DU NCANVI LLE LEWISVILLE ANGUS EASTLAND LINCOLN PARK (ANNEXED WITH LITTLE ELM) ANNA EDGECLIFF VILLAGE LITTLE ELM ARGYLE EMORY LORENA ARLINGTON ENNIS MADISONVILLE AUBREY EULESS MALAKOFF AZLE EVERMAN MANSFIELD BEDFORD FAIRVIEW MCKINNEY BELLMEAD FARMERS BRANCH MELISSA BENBROOK FARMERSVILLE MESQUITE BEVERLY HILLS FATE MIDLOTHIAN BLOSSOM FLOWER MOUND MURPHY BLUE RIDGE FOREST HILL NEWARK BOWIE FORNEY NOCONA BOYD FORT WORTH NORTH RICHLAND HILLS BRIDGEPORT FRISCO NORTHLAKE BROWNWOOD FROST OAK LEAF BUFFALO GAINSVILLE OVILLA BURKBURNETT GARLAND PALESTINE BURLESON GARRETT PANTEGO CADDO MILLS GRAND PARAIRIE PARIS CANTON GRAPEVINE PARKER CARROLLTON GUNTER PECAN HILL CEDAR HILL HALTOM CITY PETROLIA CELESTE HARKER HEIGHTS PLANO CELINA HASKELL PONDER CENTERVILLE HASLET POTTSBORO CISCO HEWITT PROSPER CLARKSVILLE HIGHLAND PARK QUITMAN CLEBURNE HIGHLAND VILLAGE RED OAK CLYDE HONEY GROVE RENO (PARKER COUNTY) COLLEGE STATION HURST RHOME COLLEYVILLE IOWA PARK RICHARDSON COLORADO CITY IRVING RICHLAND COMANCHE COOLIDGE JUSTIN RICHLAND HILLS KAUFMAN RIVER OAKS COPPELL KEENE ROANOKE CORINTH KELLER ROBINSON CRANDALL KEMP ROCKWALL CROWLEY KENNEDALE ROSCOE DALWORTHINGTON GARDENS KERRVILLE ROWLETT i EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 19 Cities with Rate Effective 3/15/2018 (Continued) ROYSE CITY SULPHUR SPRINGS WATAUGA SACHSE SWEETWATER WAXAHACHIE SAGINAW TEMPLE WESTLAKE SANSOM PARK TERRELL WESTOVER HILLS SEAGOVILLE THE COLONY WHITE SETTLEMENT SHERMAN TROPHY CLUB WHITESBORO SNYDER TYLER WICHITA FALLS SOUTHLAKE UNIVERSITY PARK WOODWAY SPRINGTOWN VENUS WYLIE STAMFORD VERNON STEPHENVILLE WACO The rates were effective for the following Cities on 4/01/2018: ABBOTT BRUCEVILLE-EDDY DEPORT ALBA BRYAN DETROIT ALMA BUCKHOLTS DODD CITY ALVORD BUFFALO GAP DOUBLE OAK ANNONA BURNET DUBLIN ANSON BYERS EARLY ARCHER CITY CALDWELL ECTOR ATHENS CALVERT EDOM AURORA CAMERON ELECTRA AUSTIN CAMPBELL EMHOUSE AVERY CARBON EUSTACE BAIRD CASHION COMMUNITY EVANT BALCH SPRINGS CEDAR PARK FAIRFIELD BALLINGER CHANDLER FERRIS BANDERA CHICO FRANKLIN BANGS CHILDRESS FRANKSTON BARDWELL CHILLICOTHE FREDERICKSBURG BARRY CLIFTON GATESVILLE BARTLETT COCKRELL HILL GEORGETOWN BARTONVILLE COLEMAN GLEN ROSE BELLEVUE COLLINSVILLE GLENN HEIGHTS BELLS COMMERCE GODLEY BELTON COMO GOLDTHWAITE BENJAMIN COOPER GOODLOW BERTRAM COPPER CANYON GORDON BLACKWELL COPPERAS COVE GOREE BLANKET CORSICANA GORMAN BLOOMING GROVE COVINGTON GRANBURY BLUE MOUND COYOTE FLATS GRANDVIEW BLUM CRAWFORD GRANGER BOGATA CROSS ROADS GREENVILLE BONHAM CUMBY GROESBECK BREMOND DAWSON GUSTINE BRONTE DECATUR HAMLIN BROWNSBORO DELEON HAMILTON EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION ii, APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS • EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 20 Cities with Rate Effective 4/01/2018 (Continued) HAWLEY MALONE RANGER HEARNE MANOR RAVENNA HEATH MARBLE FALLS RENO (LAMAR COUNTY) HEBRON MARLIN RETREAT HENRIETTA MART RICE HICKORY CREEK MAYPEARL RIESEL HICO MCGREGOR RIO VISTA HILLSBORO MCLENDON-CHISHOLM ROBERT LEE HOLLAND MEGARGEL ROBY HOLLIDAY MERIDIAN ROCHESTER HOWE MERKEL ROCKDALE HUBBARD MEXIA ROGERS HUTCHINS MIDWAY ROSEBUD HUTTO MILES ROSS IMPACT MILFORD ROTAN IREDELL MILLSAP ROUND ROCK ITALY MOBILE CITY ROXTON ITASCA MOODY RULE JEWETT MORAN RUNAWAY BAY JOSEPHINE MORGAN SADLER JOSHUA MUENSTER SAINT JO KERENS MUNDAY SAN ANGELO KNOLLWOOD MURCHISON SAN SABA KNOX CITY NEVADA SANCTUARY KOSSE NEW CHAPEL HILL SANGER KURTEN NEWCASTLE SANTA ANNA LACY-LAKEVIEW NOLANVI LLE SAVOY LADONIA NORMANGEE SCURRY LAKE DALLAS NOVICE SEYMOUR LAKEPORT OAK POINT SHADY SHORES LAMPASAS OAKWOOD SOMERVILLE LANCASTER O'BRIEN CO-OP GIN SOUTH MOUNTAIN LAVON OGLESBY SOUTHMAYD LAWN OLNEY STAR HARBOR LEANDER PALMER STOCKTON BEND LEONA PARADISE STRAWN LEONARD PECAN GAP STREETMAN LEXINGTON PENELOPE SUN VALLEY LINDSAY PFLUGERVILLE SUNNYVALE LIPAN PILOT POINT TALTY LITTLE RIVER ACADEMY PLEASANT VALLEY TAYLOR LLANO POINT TEAGUE LOMETA POST OAK BEND TEHUACANA I IF LONE OAK POWELL THORNDALE LONGVIEW POYNOR THORNTON LORAINE PRINCETON THRALL LOTT PUTNAM THROCKMORTON LUEDERS QUANAH TIOGA MABANK QUINLAN TOCO EXHIBIT A MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T—TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF 6. DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 10/01/2018 PAGE: 21 Cities with Rate Effective 4/01/2018 (Continued) TOM BEAN VALLEY VIEW WHITNEY TRENT VAN ALSTYNE WILMER TRENTON WALNUT SPRINGS WINDOM TRINIDAD WEINERT WINTERS TROY WEST WIXON VALLEY TUSCOLA WESTWORTH VILLAGE WOLFE CITY TYE WHITEHOUSE WORTHAM VALLEY MILLS WHITEWRIGHT YANTIS EXHIBIT A MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 11/01/2018 PAGE: Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri (BLi + (HSFi x ADD) ) Where i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classification. HSFi = heat sensitive factor for the ith schedule or classification divided by the average bill count in that class NDD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA; = WNAF, x qq Where qt1 is the relevant sales quantity for the jth customer in ith rate schedule. i EXHIBIT A MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF 1 EFFECTIVE DATE: Bills Rendered on or after 11/01/2018 PAGE: Base Use/Heat Use Factors Residential Commercial Base use Heat use Base use Heat use Weather Station Ccf Ccf/HDD Ccf Ccf/HDD Abilene 9.77 0.1201 99.33 0.5737 Austin 10.38 0.1493 201.46 0.8942 Dallas 13.17 0.2062 183.71 1.0046 Waco 9.26 0.1323 124.57 0.6398 Wichita 11.62 0.1278 114.97 0.5226 Falls Weather Normalization Adjustment (WNA) Report On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division. I Exhibit B Pensions and Retiree Medical Benefits I ATMOS ENERGY CORP.,MID-TEX DIVISION PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL TEST YEAR ENDING DECEMBER 31,2017 Shared Services Mid-Tex Direct Post- Supplemental Post- Line Pension Employment Pension Executive Benefit Employment Adjustment No. Description Account Plan Benefit Plan Account Plan Plan Benefit Plan Total (a) (b) (c) (d) (e) (f) (g) 1 Fiscal Year 2018 Willis Towers Watson Report, as adjusted $ 4,082,906 $ 2,703,898 $ 6,964,307 $ 188,360 $ 3,724,168 2 Allocation to Mid-Tex 43.55% 43.55% 71.24% 100.00% 71.24% Fiscal Year 2018 Actuarially Determined Benefit Costs(Ln 1 x Ln 2) 3 $ 1,778,092 $ 1,177,539 $ 4,961,241 $ 188,360 $ 2,653,027 4 O&M and Capital Allocation Factor 100.00% 100.00% 100.00% 100.00% 100.00% Fiscal Year 2018 Willis Towers Watson Benefit Costs To Approve 5 (Excluding Removed Cost Centers)(Ln 3 x Ln 4) $ 1,778,092 $ 1,177,539 $ 4,961,241 $ 188,360 $ 2,653,027 $ 10,758,260 6 7 8 Summary of Costs to Approve(1): 9 10 O&M Expense Factor(WP_F-2.3, Ln 2) 80.15% 80.15% 40.05% 19.03% 40.05% 11 12 13 Total Pension Account Plan $ 1,425,108 $ 1,987,133 $ 3,412,241 14 Total Post-Employment Benefit Plan $ 943,775 $ 1,062,621 2,006,396 15 Total Supplemental Executive Benefit Plan $ 35,837 35,837 16 Total(Ln 13+Ln 14+Ln 15) $ 1,425,108 $ 943,775 $ 1,987,133 $ 35,837 $ 1,062,621 $ 5,454,474 17 18 Note: 19 1.Mid-Tex is proposing that the fiscal year 2018 Willis Towers Watson actuarial amounts shown on WP_F-2.3 and WP_F-2.3.1, be approved by the RRM Cities as the 20 benchmark amounts to be used to calculate the regulatory asset or liability for future periods. The Company is requesting that the benchmark amount approved by the 21 RRM Cities for future periods include only the expense amount. The amount attributable to capital would continue to be recorded to utility plant through the overhead 22 process as described in the CAM. ►-3 I Exhibit C ' Amortization of Regulatory Liability I IIIIIII ATMOS ENERGY CORP., MID-TEX DIVISION RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 2017 AMORTIZATION OF REGULATORY LIABILITY Beginning of Year End of Year Rate Base Rate Base Line Year Ended Adjustment Annual Balance r of Adjust No. Dec. 31 ment December 31, Amount Amortization (1) Amount (a) (b) (c) 2017 1 2017 2 2018 $ 289,813,479 $ 289,813,479 $ 289,813,479 $ 12,075,562 277,737,918 3 2019 277,737,918 12,075,562 4 2020 265,662,356 12,075,562 253,586,795 5 2021 253,586,795 12,075,562 253,586,795241,511,233 6 2022 241,511,233 12,075,562 9435 671 7 2023 229,435,671 12,075,562 227,360,110 8 2024 217,360,110 12,075,562 205,284,5 8 9 2025 205,284,548 12,075,562 293,208,986 10 2026 193,208,986 12,075,562 183,233,425 1 11 2027 181,133,425 12,075,562 69,157,863 1 12 2028 169,057,863 12,075,562 ,92,303 15566 13 2029 ,9882,301 156,982,301 12,075,562 144,906,740 14 2030 144,906,740 12,075,562 178 15 2031 132,831,178 12,075,562 120,755,616 16 2032 120,755,616 12,075,562 108, 80,05 17 2033 108,680,055 12,075,562 108,680,0559644 93 18 2034 96,604,493 12,075,562 84,528,932 4,528,932 19 2035 84,528,932 12,075,562 772,453,370 20 2036 72,453,370 12,075,562 60,377,808 21 2037 60,377,808 12,075,562 48,302,2470,3 , 7 22 2038 48,302,247 12,075,562 36,226,685 23 2039 36,226,685 12,075,562 24 2040 24,151,123 12,075,562 12,00 22, 7575,5162(0 25 2041 12,075,562 12,075,562 ,5 26 (0) 27 Note: 28 1. The annual amortization of a 24 year recovery period is based on the 29 Reverse South Georgia Method. g CO 10---4