R-08-10-23-12D2 - 10/23/2008RESOLUTION NO. R -08-10-23-12D2
A RESOLUTION OF THE CITY OF ROUND ROCK, TEXAS APPROVING
A CHANGE IN THE TARIFFS OF ATMOS ENERGY CORPORATION,
MID-TEX DIVISION ("ATMOS") AS A RESULT OF A SETTLEMENT
BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES
("ATM"); FINDING THAT THE RATES SET BY THE ATTACHED
TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE
MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING
AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THE
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL
WHEREAS, the City of Round Rock, Texas, ("City") is a
regulatory authority under the Gas Utility Regulatory Act ("GURA")
and under § 103.001 of GURA has exclusive original jurisdiction over
Atmos Energy Corporation
Mid -Tex Division ("Atmos") rates,
operations, and services of a gas utility within the municipality;
and
WHEREAS, the City has participated in prior cases regarding
Atmos as part of a coalition of cities known as the Atmos Texas
Municipalities ("ATM"), including Railroad Commission Gas Utilities
("GUD") Docket No. 9400, numerous filings by Atmos pursuant to
Section 104.301 of GURA, GUD Docket No. 9670 and GUD Docket No.
9762; and
WHEREAS, on February 11, 2008, ATM and Atmos entered into a
settlement agreement which provided for a new mechanism to review
changes in rates known as the "Rate Review Mechanism" or "RRM"; and
WHEREAS, pursuant to the new regulatory mechanism Atmos filed
for an increase in rates of approximately forty-two million dollars
($42 million), to be effective on November 1, 2008; and
0:\WDOX\RESOLUTI\R81023D2.DOC/rmc
WHEREAS, the RRM is a three-year experiment which is aimed at
reducing rate case expenses and encouraging a more collaborative
effort at arriving at just and reasonable gas rates; and
WHEREAS, for over three months the experts representing ATM
have been analyzing data and interviewing Atmos' management; and
WHEREAS, ATM's experts have concluded that slightly less than
half of the amount requested by Atmos should be put into rates; and
WHEREAS, Atmos has agreed to reduce its requested increase in
rates by more than fifty percent (500); and
WHEREAS, in connection with this first RRM, the customer
charge for residential customers will be reduced from $10.69 to
$7.00, benefitting thousands of fixed income and low -use customers;
and
WHEREAS, in connection with the implementation of this rate
request, an energy conservation program will be instituted to
benefit customers of modest means; and
WHEREAS, the Steering Committee of ATM and its lawyers
recommend approval of the attached tariffs, set forth as Attachment
A; Now Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS THAT:
Section 1. That the statements set out in the preamble to
this resolution are hereby in all things approved and adopted.
Section 2. The amended tariffs in Attachment A are hereby
adopted to become effective on November 1, 2008.
2
Section 3.
The proof of revenues in Attachment B, the
average bill calculations, and the document entitled "Rate Review
Mechanism - 1St Year of Effective Period - Allocation of Settlement
Increase by Customer Class" has been relied upon in connection with
the adoption of the amended tariffs.
Section 4. 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 5. This resolution shall become effective from and
after its passage with rates authorized by the Attached Tariffs to
be effective in accordance with the terms of the Settlement
Agreement.
Section 6. A copy of this Resolution shall be sent to Atmos
Mid -Tex, care of Joe T. Christian, Director of Rates, at Atmos
Energy Corporation, 5420 LB J Freeway, Suite 1800, Dallas, Texas
75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC,
816 Congress Avenue, Suite 1120, Austin, TX 78701.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 23rd day of Octobe.2008
SARA L. WHITE, City Secretary
3
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTACHMENT A
AMENDED TARIFFS
ATMOS ENERGY CORPORATION
MID TEX DIVISION
RRC TARIFF NO: 19843
REVISION NO: 0
RATE SCHEDULE:
R — RESIDENTIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01!2008
PAGE: 23
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 7.00 per month
Commodity Charge — All Mcf
$2.2410 per Mcf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Pius or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment Pius an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required:
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13!2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19844
REVISION NO: 0
RATE SCHEDULE:
C — COMMERCIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
1 PAGE: 24
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of Tess than 3,000 Mcf.
Type of Service
Where service of the type desired by Customer is. not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 13.50 per month
Commodity Charge - All Mcf
$ 0.9809 per Mcf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19842
REVISION NO: 0
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
I PAGE: 25
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 425.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2733 per MMBtu
Next 3,500 MMBtu
$ 0.1993 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0427 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Pius an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Pius an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/1312008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19842
REVISION NO: 0
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 26
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19845
REVISION NO: 0
RATE SCHEDULE:
T — TRANSPORTATION
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
PAGE: 27
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge.
Amount
Customer Charge per Meter
$ 425.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2733 per MMBtu
Next 3,500 MMBtu
$ 0.1993 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0427 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with
Rider RRM.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment Plus an amount for franchise fees calculated in accordance with Rider
FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not
apply to Environs Customers.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedulewill be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRC TARIFF NO: 19845
REVISION NO: 0
RATE SCHEDULE:
T — TRANSPORTATION
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10/01/2008
I PAGE: 28
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Plaits Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Plaits Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas Industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR — GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10101/2008
PAGE: 4D
Applicable to Rate R, Rate C, and Rate 1 for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated
in Section (b) below.
The amount due for gas cost (Section (a)) is determined by multiplying the Gas Cost Recovery Factor
(GCRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C,
monthly volume will be calculated on a Mcf basis. For Customers receiving service under Rate I,
monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to
recover actual gas costs.
The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor
(PCF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C,
monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I and
Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as
necessary to recover actual gas costs.
(a) Gas Cost
Method of Calculation
The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF),
as determined with the following formula:
GCRF = Estimated Gas Cost Factor (EGCF) + Reconciliation Factor (RF) + Taxes (TXS)
EGCF = Estimated cost of gas, including lost and unaccounted for gas attributed to residential,
commercial, and industrial sales, and any reconciliation balance of unrecovered gas costs, divided
by the estimated total residential, commercial, and industrial sales. Lost and unaccounted for gas is
limited to 5%.
RF = Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of
interest over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed
over that same twelve-month period by the estimated total residential, commercial, and industrial
sales for the succeeding October through June billing months. The interest rate to be used is the
annual interest rate published by the PUC every December. The interest rate of 2008 is 4.69%.
Actual Gas Cost Incurred = The sum of the costs booked in Atmos Energy Corp., Mid -Tex
Division account numbers 800 through 813 and 858 of the FERC Uniform System of Accounts,
including the net impact of injecting and withdrawing gas from storage. Also includes a credit or
debit for any out -of -period adjustments or unusual or nonrecurring costs typically considered gas
costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees.
Actual Gas Cost Billed = EGCF multiplied by the monthly volumes billed to Residential,
Commercial and Industrial Sales customers, less the total amount of gas cost determined to have
been uncollectible and written off which remain unpaid for each month of the reconciliation period.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR — GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
I PAGE: 41
Any amount remaining in the reconciliation balance after the conclusion of the period of
amortization will be maintained in the reconciliation balance and included in the collection of the
next RF.
Atmos Energy shall file annual reports with the Commission, providing by month the following
amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off,
Gas Cost Collected and Margin Collected.
TXS = Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by
the estimated total residential, commercial, and industrial sales.
ADJ = Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the
estimated total residential, commercial, and industrial sales is to be included as a separate line item
surcharge.
(b) Pipeline Cost
Method of Calculation
Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class
listed below. The formula for the PCF is:
PCF = PP / S, where
PP = (P - A) x D, where:
P = Estimated monthly cost of pipeline service calculated pursuant to Rate CGS
D = Pipeline service allocation factor for the rate class as approved in the Company's most recent
rate case, as follows:
Pipeline Cost Rate Class
Allocation Factor (D)
Rate R - Residential Service
.63469B
Rate C - Commercial Service
.302824
Rotel - Industrial Service and Rate T - Transportation Service
.062478
A = Adjustment applied in the current month to correct for the difference between the actual and
estimated pipeline cost revenue of the second preceding month, calculated by the formula:
A = R. - (C - A2), where:
R = Actual revenue received from the application of the PP component in the second preceding
month.
C = Actual pipeline costs for the second preceding month.
A2 = The adjustment (A) applied to the PP component in the second preceding month.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GCR — GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10101/2008
I
PAGE: 42
S = Estimated Mcf or MMBtu for the rate class for the current billing month.
The PCF is calculated to the nearest 0.0001 cent.
The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the appropriate
PCF. The Pipeline Cost is determined to the nearest whole cent.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
FF — FRANCHISE FEE ADJUSTMENT
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 43
Application
Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a
municipal franchise fee upon Company for the Gas Service provided to Customer. Franchise Fees to be
assessed solely to customers within the municipal limits. This does not apply to Environs customers.
Monthly Adjustment
Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees
payable for the Gas Service provided to Customer by Company. Municipal franchise fees are determined
by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the
percentage and applicability of franchise fees.
From time to time, Company will make further adjustments to Customer's bill to account for any over- or
under -recovery of municipal franchise fees by Company.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System (except Environs areas
and the City of Dallas)
REVISION:
DATE:
EFFECTIVE DATE:
11/01/2008
PAGE: 1 OF 2
RIDER WNA — Weather Normalization Adiustment
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) for gas service set forth in any Rate Schedules utilized by the
cities of the Mid -Tex Division service area for determining normalized winter period revenues shall be
adjusted by an amount hereinafter described, which amount is referred to as the 'Weather Normalization
Adjustment," The Weather Normalization Adjustment shall apply to all temperature sensitive residential,
and commercial bills based on meters read during the revenue months of November through April. The
five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Mcf by the following formula:
WNAFi
Where
Ri
(HSFI
x (NDD-ADD) )
(BLi
+ (HSFI x ADD) )
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Mcf
Ri = base rate of temperature sensitive sales for the ith schedule or
classification approved by the entity exercising original jurisdiction.
heat sensitive factor for the ith schedule or classification calculated as the
slope of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM fling.
HSF =
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.
Bti
base load sales for the ith schedule or classification calculated as the y -
intercept of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classification
and weather station as part of the RRM filing.
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAFi x qt
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID TEX DIVISION
RATE SCHEDULE:
Rate WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System (except Environs areas
and the City of Dallas)
REVISION:
DATE:
EFFECTIVE DATE:
11/01/2008
PAGE: 2 OF 2
Where chi is the relevant sales quantity for the jth customer in ith rate schedule.
Filings with Entities Exercising Original Jurisdiction
As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather
Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather
Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such
Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer
bills, with customer information deleted, for each rate schedule or classification to which the WNA was
applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA
application, such data will be provided by the Company as part of the annual RRM filing.
If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Weather Station
Base Use/Heat Sensitivitv (HSF) Factors
Residential Commercial
Base use HSF Base use HSF
Mcf Mcf/HDD Mcf Mcf/HDD
Abilene 1.27
.0130
10.93
.0638
Austin 129
.0133
18.47
.0641
Dallas
1.79
.0186
20.83
.0878
Waco
1.30
.0141
11.41
.0617
Wichita
1.35
.0143
11.62
.0540
Falls
Sample WNAFi Calculation:
.1533 per Mcf = 1.2267 x
Where
(.0131 x
(30-17) )
(1.14
+ (.0131 x 17) )
i = Residential Single Block Rate Schedule
Ri = 1.2267 per MCF (Rate R - Final Order GUD No. 9670)
HSFi = .0131 (Residential - Abilene Area)
NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area — 9/15/06
—10/14/06)
ADD = 17 HDD (Actual HDD for Abilene Area — 9/15/06 —10/14/06)
BLI = 1.14 Mcf (Residential - Abilene Area)
ATMOS ENERGY CORPORATION
MID TEX DIVISION
REVISION NO: 0
RIDER:
GEE — CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
10/01/2008
PAGE: 58
Purpose
Atmos Energy Mid -Tex is proposing to institute a complete Conservation & Energy Efficiency program
which will offer assistance to qualified customer segments in reducing energy consumption and lowering
energy utility bills. The proposal is one where Atmos Energy shareholders will fund a percentage of the
allowable expenses incurred annually, with a customer rate component providing the remainder of the
funding. Following is a high-level, concept summary of the proposal. Atmos Energy Mid -Tex Division
proposes to work with the communities it serves to develop the details of a new tariff and programs
addressing conservation and energy efficiency.
Synopsis:
Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos
Mid -Tex, Qualified Customers will receive up to two hundred dollars ($200.00) worth of caulking,
weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving.
devices such as clock-thermostats,set-back devices ("covered items') from approved suppliers / retailers.
Company will undertake efforts to enlist support from community groups, including its own Employee
Action Program, to assist customers with installation. If itis determined that professional installation
capabilities are necessary, the parties will agree on labor assistance amounts.
Eligibility
Low Income — Low-income rate -payers that qualify for heating bill assistance through LIHEAP
agencies and all agencies that distribute Atmos "Share the Warmth" funds. Agencies that allocate
assistance funds denote customer as Low Income, a status that lasts for one year:
Senior Citizen — Primary account holder can request eligibility through ATM call center or web -site.
Customer provides primary SSN which is verified through Social Security Administration. And account.
holder that is or turns 65 years old in that year becomes eligible.
Funding
Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dollars ($1,000,000.00) per year. It is proposed that the program operate on. an October 1 through
September 30 year; with benefits being capped at the two million dollar level for the initial program period.
Administration:
A third -party administrator will coordinate qualification of customers, voucher distribution, subsequent
verification and reimbursement of eligible expenditures and general program administration. Program
administration expenses will be funded from the annual approved budget.
Audits will be provided all interested parties within 120 days of the end of each program year to determine
effectiveness.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
CEE — CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
1010112008
PAGE 59
Report
Atmos shall file an annual report detailing cost to administer the program with details of the amounts paid
out of program for energy conversation assistance. The report shall also detail number of applicants,
number rejected and accepted and reason rejected. The report shall be filed with the Gas Service
Director.
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/13/2008
ATTACHMENT B
PROOF OF REVENUES
AND
AVERAGE BILL COMPARISON
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT CURRENT RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line
Description
(a)
Rate R
1 Rate Characteristics:
2 Customer Charge
3 2007 RRM True -up
4
5 Consumption Charge ($/Mcf)
6
7 Rider GCR Part A
8 Rider GCR Part B
9
10 Billing Units (1):
11 Bills
12 Total MCF
Total
(b)
Reference
(c)
RRM Settlement Tariff,
$10.69 Rate R
$0.00
RRM Settlement Tariff,
$1.2710 Rate R
$8.1244
$0.6243
Schedule H
Schedule 1
17,069,679 Billing Determinants Study
78,708,921 Billing Determinants Study
13
14 Present Revenue:
15 Customer Charge $
16 2007 RRM True -up
17 Consumption Charge
182,474,869
100,039,039
18 Base Revenue $
19 Rider GCR Part A
20 Rider GCR Part B
21 Subtotal
22 Revenue Related Taxes
23
282,513,907
639,460,135
49,140,231
$ 971,114,273
58,440,682
24 Total Present Revenue- Rate R $ 1,029,554,955
25
26 Note 1: See Billing Determinants Study for details.
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT CURRENT RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line
Description
(a)
Rate C
1 Rate Characteristics:
2 Customer Charge
3 2007 RRM True -up
4
5 Consumption Charge ($/Mcf)
6
7 Rider GCR Part A
8 Rider GCR Part B
9
10 Billing Units (1):
11 Bills
12 Total MCF
Total
(b)
Reference
(c)
RRM Settlement Tariff,
$20.28 Rate C
$0.00
$0.7104
$8.1244
$0.5228
RRM Settlement Tariff,
Rate C
Schedule 1-1
Schedule I
1,434,516 Billing Determinants Study
50,233,642 Billing Determinants Study
13
14 Present Revenue:
15 Customer Charge $
16 2007 RRM True -up
17 Consumption Charge
29,091,984
35,685,979
18 Base Revenue $
19 Rider GCR Part A
20 Rider GCR Part B
64,777,964
408,116,524
26,261,046
21 Subtotal $
22 Revenue Related Taxes
23
499,155,534
30,038,679
24 Total Present Revenue- Rate C $
25
26 Note 1: See Billing Determinants Study for details.
529,194,213
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT CURRENT RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line
Description
(a)
Rate I &T
1 Rate Characteristics:
2 Customer Charge
3 2007 RRM True -up
4
5 Block 1 ($/MMBTU)
6 Block 2 ($/MMBTU)
7 Block 3 ($/MMBTU)
8
9 Rider GCR Part A
10 Rider GCR Part B
11
12 Consumption Characteristics:
13 Block 1
14 Block 2
15 Block 3
16
17 Billing Units (1):
18 Bilis
19 Block 1
20 Block 2
21 Block 3
22 Total MMBTU
23
24 Sales Volumes
25
Total
(b)
Reference
(c)
RRM Settlement, Rate I &
$425.00 T
$0.00
RRM Settlement, Rate I &
$0.1933 T
RRM Settlement, Rate I &
$0.1410 T
RRM Settlement, Rate I &
$0.0302 T
$8.1244
$0.2938
023502
0.26655
0.49843
10,052
9,522,217
10,799,921
20,195,218
40, 517,356
2,331,063
26 Present Revenue:
27 Customer Charge $
28 2007 RRM True -up
29 Block 1
30 Block 2
31 Block 3
4,272,100
1,840,645
1,522,789
609,896
32 Base Revenue $
33 Rider GCR Part A
34 Rider GCR Part B
8,245,429
18,494,542
11,902,411
35 Subtotal $
36 Revenue Related Taxes
37
38 Total Present Revenue- Rate KT $
39
40 Note 1: See Billing Determinants Study for details.
38,642,382
2,325,460
40,967,841
Schedule H
Schedule i
(1)
(1)
(1)
Billing Determinants Study
Billing Determinants Study
Biting Determinants Study
Biting Determinants Study
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line
Description
(a)
Rate R
1 Rate Characteristics:
2 Customer Charge
3
4 Consumption Charge ($/Mcf)
5 2007 RRM True -up ($/Mcf)
6 Rider GCR Part A
7 Rider GCR Part B
8
9 Billing Units (1):
10 Bills
11 Total MCF
12
13 Proposed Revenue:
14 Customer Charge
15 Consumption Charge
16 Base Revenue
17 Rider GCR Part A
18 Rider GCR Part B
19 Subtotal
20 Revenue Related Taxes
21
22 Total Proposed Revenue- Rate R
Total
(b)
$7.00
$2.1600
$0.0810
$8.1244
$0.6243
17,069,679
78,708,921
$ 119,487,753
176,385,175
$ 295,872,928
639,460,135
49,140,231
$ 984,473,295
59,244,614
$ 1,043,717,909
23
24 Note 1: See Billing Determinants Study for details.
Reference
(c)
RRM Settlement
Agreement,
Pg 2, Item 5
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
WP_J-1.1
WP_J-1.1
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line
Description
(a)
Rate C
1 Rate Characteristics:
2 Customer Charge
3
4 Consumption Charge ($/Mcf)
5 2007 RRM True -up ($fMcf)
6 Rider GCR Part A
7 Rider GCR Part B
8
9 Billing Units (1):
10 Bilis
11 Total MCF
12
Total
(b)
$13.50
$0.9442
$0.0367
$8.1244
$0.5228
1,434,516
50,233,642
13 Proposed Revenue:
14 Customer Charge $
15 Consumption Charge
16 Base Revenue
17 Rider GCR Part A
18 Rider GCR Part B
19 Subtotal
20 Revenue Related Taxes
21
22 Total Proposed Revenue- Rate C
23
24 Note 1: See Billing Determinants Study for details.
19,365,966
49, 273,373
$ 68,639,339
408,116,524
26,261,046
$ 503,016,909
30,271,052
$ 533,287,962
Reference
(c)
RRM Settlement
Agreement,
Pg 2, Item 5
Settlement Allocation
Settlement Allocation
Schedule H
Schedule 1
WP_J-1.2
WP_J-1.2
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line .
Description Total Reference
(a) (b) (c)
Rate I &T
1 Rate Characteristics:
2 Customer Charge $ 425.00 Settlement Allocation
3
4 Block 1 ($/MMBTU) $0.2352 Settlement Allocation
5 Block 2 ($/MMBTU) $0.1715 Settlement Allocation
6 Block 3 ($/MMBTU) $0.0367 Settlement Allocation
7 2007 RRM True -up ($/MMBTU): Settlement Allocation
8 Block 1 ($/MMBTU) $0.0381
9 Block 2 ($/MMBTU) $0.0278
10 Block 3 ($/MMBTU) $0.0060
11 Rider GCR Part A $8.1244 Schedule H
12 Rider GCR Part B $0.2938 Schedule I
13
14 Consumption Characteristics:
15 Block 1 (First 1,500 MMBTU) 0.23502 (1)
16 Block 2 (Next 3,500 MMBTU) 0.26655 (1)
17 Block 3 (Over 5,000 MMBTU) 0.49843 (1)
18
19 Billing Units (1):
20 Bills 10,052 WP_J-1
21 Block 1 9,522,217 WP_J-1
22 Block 2 10,799,921 WP J-1
23 Block 3 20,195,218 WP_J-i
24 Total MMBTU 40,517,356
25
26 Sales Volumes 2,331,063 WP_J-1
27
28 Proposed Revenue:
29 Customer Charge $ 4,272,100
30 Block 1 2,602,422
31 Block 2 2,152,424
32 Block 3 862,336
33 Base Revenue $ 9,889,282
34 Rider GCR Part A 18,494,542
35 Rider GCR Part B 11,902,411
36 Subtotal $ 40,286,235
37 Revenue Related Taxes 2,424,385
38
39 Total Proposed Revenue- Rate 184T $ 42,710,620
40
41 Note 1: See Billing Determinants Study for details.
Line
No.
ATMOS ENERGY CORP., MID-TEX DIVISION
RATE REVIEW MECHANISM - 1ST YEAR RATE EFFECTIVE PERIOD
ALLOCATION OF SETTLEMENT INCREASE BY CUSTOMER CLASS
Customer Class
(a)
1 Residential
2 Commercial
3 Industrial & Transportation
4 Total
Allocated Total
Settlement Increase (1)
(b)
$
$
14,164,235
4,095,041
1,740,723
True -Up
Amount (1)
(c)
$ 6,373,906
1,842, 769
783,326
Prospective
Amount (1)
(d)
$ 7,790,329
2,252,273
957,398
20,000,000 $ 9,000,000
$ 11,000,000
5
6 Note 1: Includes Pass-thru Taxes.
Line
No.
1
2
3
4
5
6
7
8
ATMOS ENERGY CORP., MID-TEX DIVISION
REVENUE REQUIREMENTS BY SERVICE CLASS
TEST YEAR ENDING DECEMBER 31, 2007
Description
(a)
Total Residential
Total Commercial
Total Industrial/Transportation
Total Other Revenue
Total Operating Revenues
Current
Revenues
(b)
$ 1,029,554,955
529,194,213
40,967,841
17,199,870
Proposed
Revenues 1
(c)
$ 1,043,717,909
533,287,962
42,710,620
17,199,870
Proposed Percent
Change Change
(d) (e)
$14,162,954 1.38%
4,093,749 0.77%
1,742,778 4.25%
0.00%
$ 1,616,916,879
$ 1,636,916,360 $ 19,999,481 1.24%
Note:
1 Proposed Revenues are the result of the application of the proposed rates to biting detemanants.
Errata
Line
1 Rate R16t4,6Mct
2
3
4
5
6
7 Subtotal
8 Rider FF & Rider TAX
9 Total
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Custom charge
Consumption charge
Rider GCR Part A
Rider GCR Part 8
47
48
49
5o
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
Customer charge
Consumption charge
Rider GCR Part A
Rider GCR Part 13
Subtotal
Revenue -related Tax Reimbursement
Total
Rate Cl®35.3Mcf
Customer charge
Consumption charge
Rider GCR Part A
Rider GCR Part 8
Subtotal
Revenue -related Tax Reimbursement
Total
Customer charge
Consumption charge
Rider GCR Part A
Rider GCR Part 8
Subtotal
Revenue-relaled Tax Reimbursement
Total
Rate 1 eb 4031 MMBTU
Customer charge
Consumption charge
Consumption charge
Consumption charge
Rider GCR Pall A
Rider GCR Part B
Subtotal
Revenue -related Tax Reimbursement
Total
Customer charge
Consumption charge
Consumption charge
Consumption charge
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue -related Tax Reimbursement
Total
Rate T 04031 MMBTU
Customer charge
Consumption charge
Consumption charge
Consumption charge
Rider GCR Part B
Subtotal
Revenue related Tax Reimbursement
Total
Customer charge
Consumption charge
Consumption charge
Consumption charge
Rider GCR Pan B
Subtotal
Revenue -related Tex Reimbursement
Total
ATMOS ENERGY CORP., MID-TEX DIVISION
AVERAGE BILL COMPARISON
TEST YEAR ENDING DECEMBER 31, 2007
4.6 MCF X 31.2710
4.6 MCF X 68,1244
4.6 MCF X 60.6243
656.78 X
4.6 MCF X
4.6 MCF X
4.6 MCF X
35.3
35.3
35.3
35.3
35.3
35.3
357.55 X
MCF X
MCF X
MCF X
6350.15 X
MCF X
MCF X
MCF X
6352.91 X
CURRENT
$10.69
= 6.85
• 37.37
• 2.87
0.06018 =
$2.2410 =
68.1244 =
60.6243 =
0.06018 =
60.7104 =
$8.1244 =
$0.5228 =
0.06018 =
$0.9809 =
$8.1244 =
$0.5228 =
0.06018 =
1,500 MMBTU X 30.1933
2,531 MMBTU X 60.1410
O MMBTU X $0.0302
4,031 MM8TU X 68.1244
4,031 MMBTU X 302938
635,003.37 X 0.06018
$56.78
3.42
$60.20
CURRENT
620.28
25.04
288.40
18.43
6350.15
21.07
5371.22
CURRENT
$425.00
• 289.95
• 356.84
• 0.00
= 32,747.50
= 1,184.08
$35,003.37
= 2,106.47
$37,109.84
1,500 MMBTU X $0.2733 =
2,531 MMBTU X 30.1993 =
O MMBTU X 30.0427 =
4,031 MMBTU X $8.1244 =
4,031 MMBTU X 602938 =
635,270.91 X 0.06018 =
1,500 MMBTU X $0.1933
2,531 MMBTU X $0.1410
O MMBTU X 60.0302
4.031 MMBTU X 60.2938
62255.87 X 0.06018
1,500 MMBTU X 30.2733
2,531 MMBTU X 30.1993
o MMBTU x 60,0427
4,031 MMBTU X 60.2938
CURRENT
3425.00
▪ 289.85
= 356.84
• 0.00
= 1,184.08
52,255.87
• 135.76
$2,391.63
WP_J-32 (Avg Cust)
Page5of9
PROPOSED
67.00
10.31
37.37
2.87
$57.55
3.46
661.01
PROPOSED
613.50
34.58
286.40
18.43
6352.91
21.24
$374.15
PROPOSED
$ 425.00
409.95
504.38
0.00
32,747.50
1,184.08
635,270.91
2,122.57
637,393.48
PROPOSED
$
425.00
409,95
504.36
0.00
1,184.08
32,523.41
$2,523.41 X 0.06018 = 151.86
32,675.27
DATE: October 16, 2008
SUBJECT: City Council Meeting — October 23, 2008
ITEM: 12D2. Consider a resolution approving a change in the tariffs of Atmos Energy
Corporation, as a result of a settlement between Atmos and the Atmos
Texas Municipalities (ATM).
Department:
Staff Person:
Administration
David Kautz, Assistant City Manager
Justification:
Beginning November 1, 2008, rates will be adjusted in the following respects:
• Residential Customer charge will be reduced from $10.69 to $7.00/month.
• Small Commercial customer charge will be reduced from $20.28 to $13.50/month.
• The typical residential bill will increase by 81 cents/month or by 1.38% overall.
• The typical commercial bill will increase by $2.93/month or by 0.77% overall.
• The typical Industrial/Transportation customer will experience an increase of
approximately half a percent overall.
A new energy conservation program aimed at customers of modest means will also take effect
on November 1, 2008. Qualified customers will receive up to two hundred dollars ($200.00)
worth of caulking, weather stripping, sheathing, sealing, water heater blankets and like
materials. The ATM Steering Committee recommends the adoption of the attached tariffs
which have been reviewed by its rate experts.
Funding:
Cost: N/A
Source of Funds: N/A
Outside Resources: N/A
Background Information:
In February and March, the Atmos Texas Municipalities (ATM) agreed to increase rates by less
than 20% of what was request by Atmos. In connection with that settlement, ATM also agreed
to a new regulatory regime known as the "Rate Review Mechanism" or "RRM." The first RRM is
to be implemented November 1, 2008. In April, Atmos filed its first RRM request. The request
sought to increase rates by approximately $42 million. ATM's consultants have undertaken
extensive discovery as well as interviewing key management personnel with rate case
responsibilities. Recently our experts along with the Chair of ATM's Steering Committee, Mr.
Jim Finley, and Steering Committee member, Mr. Jeff Betty of San Angelo, met with the Atmos'
rate case team in Dallas. As a result of that meeting, Atmos agreed to reduce its requested
increase to $20 million.
Public Comment: N/A