R-2016-3473 - 5/26/2016RESOLUTION NO. R-2016-3473
A RESOLUTION BY THE CITY OF ROUND ROCK,
TEXAS ("CITY"), APPROVING A CHANGE IN THE
RATES OF ATMOS ENERGY CORPORATION, MID-TEX
DIVISION ("ATMOS") AS A RESULT OF A SETTLEMENT
BETWEEN ATMOS AND THE ATMOS TEXAS
MUNICIPALITIES ("ATM") UNDER THE RATE REVIEW
MECHANISM; FINDING 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 service 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"); and
WHEREAS, pursuant to the Rate Review Mechanism ("RRM") for 2016 filed with the
City on or around March 1, 2016 for a proposed system -wide increase of $35.4 million; and
WHEREAS, experts representing ATM have been analyzing data furnished by Atmos
and interviewing Atmos' management regarding the RRM; and
WHEREAS, the Steering Committee of ATM and its counsel recommend approval of
the attached tariffs, set forth as Attachment A, along with the proof of revenues set forth as
Attachment B, which results in an increase in Atmos' revenue of $29.9 million, and Attachment
C, setting forth the beginning balance for purposes of determining pension and other post -
employment benefits to be recovered in the next RRM filing.
ON2.1604; 00357415
Atmos 2016 RRM
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ROUND ROCK, TEXAS THAT:
Section 1. The findings set forth in this Resolution are hereby in all things approved.
Section 2. The amended tariffs in Attachment A are hereby adopted to become effective
on June 1, 2016.
Section 3. To the extent any Resolution previously adopted by the City Council is
inconsistent with this Resolution, it is hereby superseded.
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. If any one or more sections or clauses of this Resolution is judged 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 6. This Resolution shall become effective from and after its passage.
Section 7. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of
Christopher Felan, Vice President of Rates and Regulatory Affairs, Atmos Energy Corporation,
5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240 and to Mr. Alfred R. Herrera, Herrera &
Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, Texas 78701.
4
RESOLVED this 26th day of May, 2016.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
SARA L. WHITE, Ci Clerk
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
RATE SCHEDULE:
R— RESIDENTIAL SALES
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
Rider CEE Surcharge
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
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
$ 19.10 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 19.12 per month
Commodity Charge — All Ccf
$0.11378 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, 2015.
3 -Attachment A -Tariff -l -Residential
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
RATE SCHEDULE:
C — COMMERCIAL SALES
Customer Charge per Bill
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
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
$ 41.75 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 41.77 per month
Commodity Charge — All Ccf
$ 0.08494 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.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
4 -Attachment A -Tariff -2 -Commercial
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
First 0 MMBtu to 1,500 MMBtu
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
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
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 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
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.
5 -Attachment A -Tariff -3 -Industrial
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
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 06/01/2016
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.
5 -Attachment A -Tariff -3 -Industrial
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T—TRANSPORTATION
Customer Charge per Meter
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
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
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 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.
6 -Attachment A -Tariff -4 -Transportation
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA —WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
PAGE: 41
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; = WNAFi x q;i
Where q; is the relevant sales quantity for the jth customer in ith rate schedule.
7 -Attachment A-Tariff-S-WNA
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
WNA —WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/01/2016
PAGE: 42
Base Use/Heat Use Factors
Wichita 11.49 0.1506 122.35 0.5967
Falls
Weather Normalization Adiustment (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.
7 -Attachment A-Tariff-5-WNA
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
Ccf/HDD
Ccf
Ccf/HDD
Abilene
10.09
0.1392
98.01
0.6440
Austin
11.21
0.1551
203.36
0.8564
Dallas
13.72
0.2048
189.83
0.9984
Waco
9.89
0.1411
129.75
0.6695
Wichita 11.49 0.1506 122.35 0.5967
Falls
Weather Normalization Adiustment (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.
7 -Attachment A-Tariff-5-WNA
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
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 06/01/2016
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.
6 -Attachment A -Tariff -4 -Transportation
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2015
Post -Retirement Supplemental Post-Retireme,
Line Pension Account Medical Plan Pension Account Executive Benefit Medical Plan
No. Description I Pian ("PAP") ("FAS 106") 1 Plan ("PAP") Plan ("SERP") ("FAS 106")
Fiscal Year 2016 Towers Watson Report (excluding Removed Cost
1 Centers)
$ 5,101,680 $
2,896,450 $
7,840,683 $
150,433 $
4,466,430
2 Allocation to Mid -Tex
40.56%
40.56%
71.52%
100.00%
71.52
FY16 Towers Watson Benefit Costs (excluding Removed Cost Centers)
3 Allocated to MTX (Ln 1 x Ln 2)
$ 2,069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561
4 O&M and Capital Allocation Factor
100.00%
100.00%
100.00%
100.00%
100.00%
FY16 Towers Watson Benefit Costs To Approve (excluding Removed Cost
5 Centers) (Ln 3 x Ln 4)
$ 2,069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561 $
12,197,081
6
7
8 Summary of Costs to Approve:
9
10 Total Pension Account Plan ("PAP")
$ 2,069,299
$
5,607,955
$
7,677,254
11 Total Post -Retirement Medical Plan ("FAS 106")
$
1,174,833
$
3,194,561
4,369,394
12 Total Supplemental Executive Retirement Plan ("SERP")
$
150,433
150,433
13 Total (Ln 10 -Ln 11 +Ln 12)
$ 2.069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561 $
12,197,081
14
15
16 O&M Expense Factor
96.41%
96.41%
37.42%
20.77%
37.42
17
18 Expense Portion (Ln 13 x Ln 16)
$ 1,995,016 $
1,132.659 $
2,098,222 $
31,249 $
1,195,248 $
6.452,393
19
20 Capital Factor
3.59%
3.59%
62.58%
79.23%
62.58
21
22 Capital Portion (Ln 13 x Ln 20)
$ 74,283 $
42,174 $
3,509,733 $
119.184 $
1,999,313 $
5.744,687
23
24 Total (Ln 18 + Ln 22)
$ 2,069,299 $
1,174,833 $
5,607,955 $
150,433 $
3,194,561 $
12.197,081
9 -Attachment C-OPEB Baseline