ORD 2008-25TOWN OF TROPHY CLUB
ORDINANCE NO. 2008-25
AN ORDINANCE OF THE TOWN OF TROPHY CLUB,
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 THE RATES SET BY
THE ATTACHED TARIFFS TO BE JUST AND
REASONABLE; PROVIDING FOR THE INCORPORATION
OF PREMISES; PROVIDING FOR THE ADOPTION OF
AMENDED TARIFFS AS SPECIFIED IN ATTACHMENT
"A" HERETO; PROVIDING THAT THE MEETING
COMPLIED AT WHICH THIS ORDINANCE WAS
ADOPTED COMPLIED WITH THE OPEN MEETINGS ACT
AND DECLARING AN EFFECTIVE DATE; PROVIDING A
SAVINGS AND REPEALER CLAUSE, PROVIDING FOR
SEVERABILITY; PROVIDING FOR ENGROSSMENT AND
ENROLLMENT; PROVIDING FOR DELIVERY OF THIS
ORDINANCE TO ATMOS AND LEGAL COUNSEL
WHEREAS, the Town of Trophy Club, Texas ("Town") is a regulatory authority under the
Gas Utility Regulatory Act ("GURK) 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 Town 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, GUID 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" (hereinafter "Settlement Agreement"); 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 October 1, 2008;
and
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 (50%); and
WHEREAS, in connection with this first RRM, the customer charge for residential
customers will be reduced from $10.69 to $7.00, benefiting 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 ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS:
Section I
Incorporation of Premises
The foregoing statements set out in the preamble to this Ordinance are hereby in all
things approved and adopted.
Section 2
Amended Tariffs Adopted
The amended tariffs in Attachment A are hereby adopted to become effective on
October 1, 2008. Attachment A is hereby incorporated into this Ordinance as if written word for
word. 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 3
Open Meeting I Effective Date
The meeting at which this Ordinance was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. This
Ordinance shall become effective from and after its passage with rates authorized by the
Attached Tariffs to be effective in accordance with the law and the terms of the Settlement
Agreement.
Section 4
Savings and Repealle
That this Ordinance shall be cumulative of all other Ordinances of the Town affecting the
Tariffs of Atmos Energy Corporation, Mid -Tex Division ("Atmos") and shall not repeal any of the
provisions of such Ordinances except in those instances where provisions of those Ordinances
are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified
or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or
uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and
effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior
to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such
repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for
that purpose the Ordinance shall be deemed to remain and continue in full force and effect.
Section 5
Severabili
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or
application thereof to any person or circumstance, is held invalid or unconstitutional by a Court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
the Ordinance, and the Town Council hereby declares it would have passed such remaining
portions of the Ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
Section 6
Engrossment and Enrollment
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this
Ordinance in accordance with the Town Charter and to comply with Section 7 of this Ordinance.
Notice to Atmos
A copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Joe T. Christian,
Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas
75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue,
Suite 1120, Austin, TX 78701.
Nick Sanders, Mayor
ATTEST:
L44 a'Ramsey, ToQ'Secretary I
[SEAL]
APPROVED AS TO FORM: I
��:L uc� UM /0i
Patricia A. Adams, Town Attorney
qpy 1, '01
ATTACHMENT A
AMENDED TARIFFS
ATTACHMENT B
PROOF OF REVENUES
I =kb
AVERAGE BILL COMPARISON
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:
10101/2000
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 Die 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 Met charges to the
amounts due under the riders listed belovr.
Charge
Amount
Customer Charge per Bill
$ 7.00 per month
Commodity Charge — All Met
$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: 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
Datelssued: 08/13/2008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RRG 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 less than 3,000 Mcf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 13.50 per month
Commodity Charge - All Mcf
$ 0.9809 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
'3ervice 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: I SB42
REVISION NO: 0
RATE SCHEDULE:
I — INDUSTRIAL SALES
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
10101/2008
PAGE: 25
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less tharl 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
Customers 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 MM Btu
All MMStu 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: 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.
Tay, Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an @Mount 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 Plaits 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 RRC TARIFF NO: 19842
MID-TEX DIVISION REVISION NO: 0
I —INDUSTRIAL SALES
APPLICABLE TO: Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE: 10/01/2008 1 PAGE: 26
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 2ppliC2ble 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 RRG TARIFF NO: 19845
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE:
TION
APPLICABLE TO:
capt Environs areas and the City of Dallas)
EFFECTIVE DATE:
1 1010112008
1 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 Customers 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
Customers 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
$ 426.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2733 per MMStu
Next 3,500 MMBtu
$ 0.1993 Per MMBtLJ
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 Schedule will be charged bascd 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
ATIVIDS ENERGY CORPORATION RRG TARIFF NO: 19845
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE:
T —TRANSPORTATION
APPLICABLE TO:
Entire Division (except Environs areas and the City of Dallas)
EFFECTIVE DATE:
1010112006
1 PAGE: 28
Monthly Imbalance Fees
Customer shall pay Company the greater of (1) $0.10 per MMBtu, or (1!) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Kary point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Curtailment Overpull Fee
Upon notiflcatlon 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.
Issued By: David J_ Park Vice President, Rates and Regulatory Affairs
Date Issued: 08/1312008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:
GCR — GAS COST RECOVERY
APPLICABLE TO:
EFFECTIVE DATE:
PAGE: 4D
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate 1, 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 Customers 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 1,
monthly volume will be calculated on an MMStu 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 Customers 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 MMStu 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%.
RIF = 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 PUG every December- The interest rate of 2008 Is 4-69%.
Actual Gas Cost Incurred = The sum of the costs booked in Atmos Energy CDFP-, 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 = EGGF 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 Aflaks
Date Issued: 08/1312008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER;
GCR — GAS COST RECOVERY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
1010112008
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 @S approved in the Company's most recent
rate case, as follows:
Pioellne Cost Rate Class
Allocation Fact
2 - Residential Service
1.634698
FRaj
ER
�� te _ mmercial Service
1,302824
LRate I - Industrial Service and Rate T - Transportation Service
1.062478
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-TEXDIVISION REVISION NO: 0
RIDER: GCR — GAS COST RECOVERY
APPLICABLE TO: Entire Division
EFFECTIVE DATE: 10/0112008 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: 08/1312008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
FF — FRANCHISE FEE ADJUSTMENT
APPLICABLETO:
EFFECTIVE DATE:
10101/2008
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 Customers 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: 08/1312008
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID-TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System (except Environs areas
arid the City of Dallas)
REVISION:
DATE:
EFFECTIVE DATE:
11/0112008
PAGE: 1 OF 2
RMER WNA — Weather Normalizatlon Adfustrinen
Provisions forAdiustment
The base rate per Mcf (1,000,000 Btu) for gas service set forth in any Rate Schedules utilized by the
cities of the Mfd-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-
Commitation of Weather Normalization Adiustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one -hundredth cent
per Mcf by the following formula:
WNAFI Ri
Where
(HSFi X (NDD-ADD))
(BLi + (HSFi x ADD) )
any particular Rabe Schedule or billing classification within any such
particular Rate Schedule that contains more then one billing classification
WNAFi Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Mcf
Ri base rate ol temperature sensitive sales for the ith schedule or
classification approved by the entity exercising original jurisdiction.
HSFi heat sensitive factor for the ith schedule or classification calculated as the
slope of the linear regression of average sales per blil (Mcf) and actual
heating degree days by month for the test year by schedule or classification
arid weather station as part of the RRM filing.
NOD billing cycle nonnal heating degree days calculated as the simple ten-year
average Of actual heating degree days,
ADD billing cycle actual heating degree days.
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:
WNAI = WNAF1 x qr,
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:
1110112008
PAGE: 2 OF 2
Where qjl 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 tile Weather
Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather
Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such
Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer
bills, with customer information deleted, for each rate schedule or classification to which the WNA was
applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA
application, such data will be provided by the Company as part of the annual RRM filing.
If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base UsetHeat Sensitivity (HSF) Factors
Residential Commerci@l
Base use HSF Base use HSF
WPAlhPr.qtnfinn Mr.f Mr.f/HDD Mcf Mcf/HDD
[—Ablierme
1.27
0-130
10.93
- 0638
Austin
1.29
.0133
0641
Dallas
1.79
20.83
.0878 1
1.30
�6111�
4,
.0617
L Wichita
Fa
1.35
0143
11.62
0540
Sample WNA Calculation:
(.0131 (30-17)
.1533perMcf 1.2267 x
(1.14 + (.0131 x 17)
Where
Residential Single Block Rate Schedule
Ri 1.2267 per MCF (Rate R - Final Order GUD No. 9670)
HSFi
.0131 (Residential -Abilene Area)
NDO
30 HOD (Simple ten-year average of Actual HDD for Abilene Area — 9/15106
—10/14106)
ADD
17 HOD (Actual HDD for Abilene Area — 9115/06 — 10114/06)
BLi
1-14 Mcf (Residential - Abilene Area)
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
GEE — CONSERVATION & ENERGY EFFICIENCY
APPLICABLETO:
Entire Division
EFFECTIVE DATE:
10/0112008
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 I retailers -
Company will undertake efforts to enlist support from community groups, Including its own Employee
Action Program, to assist customers with installation. if it is determined that professional installation
capabilities are necessary, the parries 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,QD0,000). Atmas 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 211 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: 08/1312008
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
REVISION NO: 0
RIDER:
I CEE — CONSERVATION & E14ERGY EFFICIENCY
APPLICABLE TO:
Entire Division
EFFECTIVE DATE:
1010112008
Repo
Armes 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: 08113/2008
All
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT CURRENT RATES
TEST YEAR ENDING DECEMBER 31, 2007
Line Description Total Reference
(a) (b) (c)
Rate R
1
Rate Characteristics:
RRM Settlement Tariff,
2
Customer Charge
$10.69
Rate R
3
2007 RRM True -up
$0.00
4
RRM Settlement Tariff,
5
Consumption Charge ($/Mcf)
$1.2710
Rate R
6
7
Rider GCR Part A
$8.1244
Schedule H
8
Rider GCR Part B
$0.6243
Schedule I
9
10
Billing Units (1):
I I
Bills
17,069,679
Billing Determinants Study
12
Total MCF
78,708,921
Billing Determinants Study
13
14
Present Revenue:
15
Customer Charge
$
182,474,869
16
2007 RRM True -up
-
17
Consumption Charge
100,039,039
18
Base Revenue
$
282,513,907
19
Rider GCR Part A
639,460,135
20
Rider GCR Part 6
49,140,231
21
Subtotal
$
971,114,273
22
Revenue Related Taxes
58,440,682
23
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 Descripfion Total Reference
(a) (b) (c)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Rate C
Rate Characteristics:
Customer Charge
2007 RRM True -up
Consumption Charge ($1Mcf)
Rider GCR Part A
Rider GCR Part B
Billing Units (1):
Bills
Total MCIF
Present Revenue:
Customer Charge
2007 RRM True -up
Consumption Charge
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
Total Present Revenue- Rate C
RRM Settlement Tariff,
$20.28 Rate C
$0.00
RRM Settlement Tariff,
$0.7104 Rate C
$8.1244 Schedule H
$0.5228 Schedule I
1,434,516 Billing Determinants Study
50,233,642 Billing Determinants Study
29,091,984
35,685,979
$ 64,777,964
408,116,524
26,261,046
$ 499,155,534
30,038,679
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 Total Reference
(a) (b) (c)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
1 B
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Rate I &T
Rate Characteristics:
Customer Charge
2007 RRM True -up
Block I ($/MMBTU)
Block 2 ($/MMBTU)
Block 3 ($/MMBTU)
Rider GCR Part A
Rider GCR Part B
Consumption Characteristics:
Block 1
Block 2
Block 3
Billing Units (1):
Bills
Block 1
Block 2
Block 3
Total MMBTU
Sales Volumes
Present Revenue:
Customer Charge
2007 RRM True -up
Block 1
Block 2
Block 3
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
Total Present Revenue- Rate I&T
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
0.23502
0.26655
0.49843
10,052
9,522,217
10,799,921
20,195,218
40.517,356
2,331,063
4,272,100
1,840,645
1,522,789
609,896
$ 8,245,429
18,494,542
11,902,411
$ 38,642,382
2,325,460
Note 1: See Billing Determinants Study for details.
40,967,841
Schedule H
Schedule I
BIlling Determinants Study
Billing Determinants Study
Billing Determinants Study
Billing Determinants Study
Line
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Descri
Rate R
Rate Characteristics:
Total
Customer Charge $7.00
Consumption Charge ($/Mc� $2.1600
2007 RRM True -up ($/Mc� $0.0810
Rider GCR Part A $8.1244
Rider GCR Part B $0.6243
Billing Units (1):
Bills 17,069,679
Total MCF 78,708,921
Prormsed Revenue
Customer Charge
$
119,487,753
Consumption Charge
176,385,175
Base Revenue
$
295,872,928
Rider GCR Part A
639,460,135
Rider GCR Part B
49,140,231
Subtotal
$
984,473,295
Revenue Related Taxes
59,244,614
Total Proposed Revenue- Rate R
$
1,043,717,909
Note 1: See Billing Determinants Study for details.
RRM Settlement
Agreement,
Pg 2, Item 5
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
WP J-1.1
WID-J-1.1
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 C
1 Rate Characteristics:
2
Customer Charge
$13.50
3
4
Consumption Charge ($/Mcf)
$0.9442
5
2007 RRM True -up ($/Mc�
$0.0367
6
Rider GCR Part A
$8.1244
7
Rider GCR Part B
$0.5228
8
9
Billing Units (1):
10
Bills
1,434,516
11
Total MCF
50,233,642
12
13
Proposed Revenue:
14
Customer Charge
$
19,365,966
15
Consumption Charge
49,273,373
16
Base Revenue
$
68,639,339
17
Rider GCR Part A
408,116,524
18
Rider GCR Part B
26,261,046
19
Subtotal
$
503,016,909
20
Revenue Related Taxes
30,271,052
21
22
Total Proposed Revenue- Rate C
$
533,287,962
23
24 Note 1: See Billing Determinants Study for details
RRM Settlement
Agreement,
Pg 2, Item 5
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
WP J-1.2
WP—J-1 -2
Line
1
2
3
4
5
6
7
8
9
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
ATMOS ENERGY CORP., MID-TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING DECEMBER 31, 2007
Rate I &T
Rate Characteristics:
Customer Charge
Block I ($/MMBTU)
Block 2 ($/MMBTU)
Block 3 ($/MMBTU)
2007 RRM True -up ($/MMBTU):
Block I ($/MMBTU)
Block 2 ($/MMBTU)
Block 3 ($IMMBTU)
Rider GCR Part A
Rider GCR Part B
Consumption Characteristics:
Block I (First 1,500 MMBTU)
Block 2 (Next 3,500 MMBTU
Block 3 (Over 5,000 MMBTU
Billing Units (1):
Bills
Block 1
Block 2
Block 3
Total MMBTU
Sales Volumes
Proposed Revenue:
Customer Charge
Block I
Block 2
Block 3
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
Total Proposed Revenue- Rate I&T
Total
Reference
(c)
425.00 Settlement Allocation
$0.2352
$0.1715
$0.0367
$0.0381
$0.0278
$0.0060
$8.1244
$0.2938
0.23502
0.26655
0.49843
10,052
9,522,217
10,799,921
20,195,218
40,517,356
2,331,063
$ 4,272,100
2,602,422
2,152,424
862,336
$ 9,889,282
18,494,542
11,902,411
$ 40,286,235
2,424,385
40
41 Note 1: See Billing Determinants Study for details.
42,710,620
Settlement Allocation
Settlement Allocation
Settlement Allocation
Settlement Allocation
Schedule H
Schedule I
WP J-1
WP J-1
WP J-1
WP_J_1
VVP_J_1
ATMOS ENERGY CORP., MID-TEX DIVISION
PATE REVIEW MECHANISM - IST YEAR RATE EFFECTIVE PERIOD
ALLOCATION OF SETTLEMENT INCREASE BY CUSTOMER CLASS
Line
Allocated Total
True -Up
Prospective
No. Customer Class
Settlement Increase
Amount
Amount
(a)
(b)
(c)
(d)
1 Residential $
14,164,235 $
6,373,906 $
7,790,329
2 Commercial
4,095,041
1,842,769
2,252,273
3 Industrial & Transportation
1.740,723
783,326
957,398
4 Total $
20,000,000
$
9,000,000 $
11,000,000
5
6 Note 1: Includes Pass-thru Taxes
ATMOS ENERGY CORP., MID-TEX DIVISION
REVENUE REQUIREMENTS BY SERVICE CLASS
TEST YEAR ENDING DECEMBER 31, 2007
Line
No.
Description
Current
Revenues
Proposed
Revenuesl
Proposed
Change
Percent
Change
(a)
lb)
(c)
(d)
(a)
1
Total Residential
$1,029,554,955
$ 1,043,717,909
$14.162,954
1,38%
2
Total Commercial
529,194,213
533,287,962
4,093,749
0,77%
3
Total Industrial/Transportation
40,967,841
42.710.620
1,742,778
4.25%
4
Total Other Revenue
17,199,870
17,199,870
-
0.00%
5
Total Operating Revenues
$ 1,616,916,879
$ 1,636,916,360
$19,999,481
1.24%
6
7
Note*
a
1 Projamed Revenjes am [tie resull of the ap�tmn at the pm;iased
rates to WN� damorainame.
Erred. WP_J-3 2 (Avg Cuel)
ATMOS ENERGY CORP., MID-TEX DIVISION Page 5 of 9
AVERAGE BILL COMPARISON
TEST YEAR ENDING DECEMBER 31. 2007
Line
I
Rate R 0 4.9 14.
CURRENT
PROPOSED
2
Customer Merge
$10,69
3
Consumption Merge
4.6
MCF
x
S1.271D =
5.BS
4
Rider OCR Pon A
4.6
MCF
x
SBA244 =
37.37
5
Rid., OCR Pad 8
4.6
MCF
x
$0 U43 =
2.67
6
7
Subtotal
$56.78
5
Rider FF & Rd., TM
$5618
x
O.M018 =
342
9
Total
$5020
10
11
Customersnarge
S7.00
12
Cmmu.p9.n Merge
4.6
MCF
x
$Z2410 =
10.31
13
Rider OCR Pon A
4�6
MCF
x
SG.12� =
37.37
14
Rider OCR Pon B
46
MCF
x
SO.6243
2.87
is
16
Subtotal
$57.55
17
Re,mmm-rel.l.cl T. Reimbursement
$57,55
x
0'[)6018
3.45
Ill
Total
W1.01
19
20
21
Rate C 0 35.3 M
CURRENT
PROPOSED
22
CustomorsInmg.
U028
23
Consumption M.D.
35,3
MCF
x
$0.71111 =
25.04
24
Rider OCR Pan A
35.3
MCF
x
$8.12� =
2136.40
25
Rid. GCR Pon B
35.3
1ACF
x
$0,5226 =
18.43
26
27
28
Subtotal
S350.15
29
R.�.d .... Most T. R.I.bum.ment
$350.15
x
0.0B018 =
21.07
30
Told
S371.m
31
32
Customer Merge
ST3,50
33
Consumption Merge
353
MCF
x
SO 9809 =
34.58
34
Rider OCR Pon A
352
MCF
x
SBA24,1 =
286.40
35
Rider GCR Pon 5
351
MCF
x
$0=8 =
10.43
36
37
Subtotal
n5zgl
3D
R ... ram-ml.dd To. Reimbursement
$352.91
x
DD6018 =
21.24
39
Total
S37415-
40
41
Role I da 4031 WEITU
CURRENT
PROPOSED
42
C.stsere.r.h.m.
$42SOD
43
C.mrsunddom Merge
1.600
VM3TU
x
$0.1933 =
289,95
44
Consumpfion Marge
2,531
VIVIBTU
x
SO1410 =
355.84
45
Consumption emage
0
Vlv!9TU
x
$0.0302 =
0.00
46
Rid., GCR Pad A
4.031
MMSTU
x
S11.1244 =
32,747.5D
47
Rid., OCR Pad It
4,031
MIMTU
x
$0.2938 =
Tim�oa
48
49
Subt.1.1
sn.W3.37
50
Revertud-ralsered Tax Reimbursement
$35,00337
x
0�05018 =
2,105AT
51
Total
$37.109,84
52
53
Customer Merge
$ 425.00
5`1
Ccda.mpt'M a ... go
1.5all
VMBTU
x
S02733 =
409.95
55
Consumption Merge
2.531
NIMBTU
x
SDA993 a
5N.38
56
Consumption Merge
0
VMHTU
x
SO.N27 =
0.00
57
Room, OCR Pon A
4.031
NIMBTU
x
S8.1244 =
32,747.50
5d
Rid., OCR Pon D
4,031
VMSTU
x
$0,2938 =
Tia,l.08
59
Subtotal
$35,270.91
0
Revenue-relaled Tax ReimWeemant
$35,27091
x
0.0010 =
2.12257
61
Total
$37.393.48
62
63
Rate T 5 4031 MMETU
CUR�T
PROPOSED
6`1
C.slardersharge
$425.00
65
Consumptionsinarge
1.500
MMBTU
x
$0.1933 =
289.95
w
Consumption charge
2,531
MMBTU
x
$0.1410 =
355,64
w
Consumption Merge
0
VMBTU
x
W.0302 =
0.00
68
Rd., GCR Pan B
4,031
MfABTU
x
SO.2938 =
1.104.08
69
70
Subtotal
S2.255,B7
71
Re�erdte-related Tax Reimbursement
S2.255.B7
x
D.0601 B -
135.76
72
Total
$2.391.63,
73
74
C..Wm.,M.rg.
5 425.00
75
consumption Merge
1,500
MMBTU
x
S0.2733 =
409.95
76
Consumption Modgm
2,631
MMBTU
x
SUAS93
504.38
Consumption Merge
a
AMBTU
x
SO.0427
0,00
78
Rid., OCR Pon B
4,031
MIASTU
x
S0�293(3
1.104.05
79
Subtotal
SZ523.41
80
Rovanue-rolated Tax Reimbursement
U.52141
x
D.GSDIB
161.86
81
Total
______LZ67527