HomeMy WebLinkAboutR2009-018sAour documents\reso1utions\09Vrm 2008 resolution.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON 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.
WHEREAS, the City of Denton ("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"), and
WHEREAS, pursuant to the Rate Review Mechanism ("RRM") for 2008 Atmos filed
with the City Secretary on March 6, 2009 for an increase in rates of $24,047,441 with an offset
of $9 million at the expiration of the 2007 true-up resulting in a net increase of $15,047,441; and
WHEREAS, for almost four months the experts representing ATM have been analyzingdatafurnishedbyAtmosandinterviewingAtmos' management; and
WHEREAS on June 26, 2009, ATM and Atmos entered into a settlement agreement
which provided for a net increase of $2.6 million, which will cause rates to increase by 15 cents
per month for a typical residential customer; and
WHEREAS, the net increase is approximately 17% of the total amount requested; and
WHEREAS, slight changes were agreed to by ATM to the Gas Cost Recovery tariff and
the Conservation Energy Efficiency tariff, and
WHEREAS, the Steering Committee of ATM and its lawyers recommend approval of the
attached tariffs, set forth as Attachment A; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. 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 August 1, 2009.
sAour documents\reso1utions\09\n m 2008 resolution.doc
SECTION 3. The meeting at which - this Resolution was approved was in all thingsconductedinstrictcompliancewiththeTexasOpenMeetingsAct, Texas Government Code,
Chapter 5 51.
SECTION 4. This Resolution shall become effective from and after its passage.
SECTION 5. 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 LBJ Freeway, Suite 1800,
Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC, 816
Congress Avenue, Suite 1250, Austin, TX 78701.
PASSED AND APPROVED this the da ofY 2009.
MARK A. BU.RR0 GHS, YOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: I QA-\1-0
APPT OVED TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:2w~
Page 2
ATTACHMENT A
AMENDED TARIFFS
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: R - RESIDENTIAL SALES
APPLICABLE TO: All Cities designated as "Group All on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 29
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 toservicebeingfurnished.
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:
f..::,PY-..-...~~~'t;.\.'`•:..^=s• r,._.T,.Y tC.•:.C'.~. .'YG.~^:.s•.:c.y' x'..~_._.:i•• v_::u~?eciza•'i.~:l`.•a'":E .5-:-...^~'._ kv::t"'_ti'G•-,n,:G:c-:~-^.~7.t'c•'.r'G+.~i `i ~:y~. 5. T
v;~rK"" v;• rc a..P,sL'~•a~:a}~". C...~.'v-E^•~'rS~~S.,V~S• :-i~.^-~-~...~ _1''`'s ~Y Y Y~~..:::.mss;' ti-~..•zt'-----t-c:,. 5:~....yP,'.:-rc.,~:. ac"s~`•.C..`,~'-~i'C•^F:._;.-.~'.2.•:+'t%-'~'.+.J;?nr.:%..-+-.~i`mi^,»~F:'.:.~~.«'.. ">aa:'.~ i~.~;"1S`i;?~,'_•:..-;$~;f~^~.a:z'~+'t;~=`r~i n 'z.~-.`.'._~a'in'~*iw. ~.•ST'~==^
Customer Charge per Bill 7.00 per month
Commodity Charge - All Mcf 2.2707 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 normalizationcalculatedinaccordancewithRiderWNA.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance withRiderRRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with RiderFF. Rider FF is only applicable to customers inside the corporate limits of any incorporatedmunicipality.
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 AffairsDateIssued:
i t
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: C - COMMERCIAL SALES
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 0810112009 PAGE: 30
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 theamountsdueundertheriderslistedbelow:
ty~~c'=..~".~=~•~"i`,=::_~v~=v.,.;,~~_.j'~; ~55'arLs::ir;;.c.-` ~,^.scw s1::<~~-.M.=_~w.. _..r•,.~.::-.a: ..d.-:w;-:cY:x:_' :i= a...., tir•~.X,. a .`:co:•c:ti:.~ i<o•.
ate .:c..j-yam ~c3~~~~,a:Fi~ss:a:czi^a~n:<r-•--tr'-•-1".t~ ¢-.~fi•,?~^':Fi:i-'^.~x~_: ~e:s:SV1~.a~gGi~.,.~ea~v~~x'=p;c ~?;s~ss~~.r~.;:'=~ sc:a.3i,..,~ .s.:_.cc~~:c;.~~;-~lr, xi::.c~~a.',~..tc ~:.'cw'-'~:,
c V.._.O^•. .._.'_`t t ~T~ .t'^".4."': 'V';C"a.-:C'.-^:i.'$~'1.~~~/.~*M.`=a.'X~Yu:~l. ~ `^7~w.y.~ ~ aP.c,`..i~:.yx:.r cr-..•^LxT_~_ -x:c~'= ._.._.ii:.;:>_`i'.'•'= w'3?,.~?~."s.-:-:c=..
Customer Charge per Bill 13.50 per month
Commodity Charge - All Mcf 0.9877 per Mcf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculatedinaccordancewithPart (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance withRiderRRM.
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 incorporatedmunicipality.
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 AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID TEX DIVISION REVISION NO: 0
RATE SCHEDULE: I - INDUSTRIAL SALES
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/0112009 PAGE: 31
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per dayforallnaturalgasprovidedatonePointofDeliveryandmeasuredthroughonemeter. 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:
u^..os.: ~;~u=`"~;fi-'C:.~;~ w •"-"y`x..J#:Ca~ i wa:uj..zt::xv"~. .yiw rr"..~.=-:c-n u_.. h
U-rz-"' K;,,r.. y.~y~ x.~::.;,ri~-~:y-- „3,r_'~......r. -c~~".``~^'%"=*;,':-'~f~ t «~::xw 1_.-a~~-`,~~.-"~JZ"..L ~'vi~. Jv7 "'^'-^`.''a.d- ~Y.•~~.x..."'^' ~ ~~•:~C^~*',,SLi:sw'::x "..fi.:"%~:..;. 4~~:-::~:_'r.Mr+^:ti..iy_TL.-~.:c+'r•0~.: C...+'n~.^~..•-•tr.
vY' =:R- r_'.-.vn.... w.....-.ca::~.:y~~."^.x-Y?c^-^..;:ti::•.:-.•*_'~..i..:.~..u`:sxS wvi?':~r'; t:~~~'f`'
Customer Charge per Meter 425.00 per month
First 0 MMBtu to 1,500 MMBtu 0.2583 per MMBtu
Next 3,500 MMBtu 0.1884 per MMBtu
All MMBtu over 5,000 MMBtu 0.0404 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
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: Pius 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."
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: I - INDUSTRIAL SALES
APPLICABLE TO: All Cities designated as "Group All on the Citifies Served List
EFFECTIVE DATE: Bills Rendered on or after 0810112009 PAGE: 32
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 closelyapproximatingtheapplicableindex.
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 AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: T - TRANSPORTATION
APPLICABLE TO: All Cities designated as "Group All on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 33
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 thetransportationofallnaturalgassuppliedbyCustomerorCustomer'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 toservicebeingfurnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amountsandquantitiesdueundertheriderslistedbelow:
cS= tom. u.a:x •---c: • r-xµr;,x~-•'-" `;c,; _~,'.".a.~`~w:.sm:.a::;~. s. r^;f'zc.~`='W,t~V~'ry.. h...Ni-..~ ^wiS-. `v~..~`..'i~x~~ ~c~• -,c.~^x~• y.?.~ ~ •a: ~•••~•r,.~~'~"~,~.;.r...c.~~.y.vcsro.yGwr'»'. ,.y;a^:c.s iAc.`..-v:.ti.'UZ,=w:,i t Vic;-.....;.::sA+:tr`•i•xsris.._..cr.:-a. •':_r :33s::..- Fa-:.~=s.~r=4Y"x:r[r-'t:rrin= :cr_i''fi-''R~nr•.:-_..o'_:',ta.i•:?:rr7.•.~..:5.•-..,tM.Customer
Charge per Meter 425.00per month First
0 MMBtu to 1,500MMBtu 0.2583per MMBtu Next
3,500MMBtu 0.1884 per MMBtu All
MMBtu over 5,000MMBtu 0.0404per MMBtu Upstream
Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance
with Part (b) of Rider GCR.Rate
Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with RiderRRM.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 determinedundertheapplicableTransportationAgreementandquantitieswillnotbeaggregatedforanyCustomerwithmultipleTransportationAgreementsforthepurposesofsuchfees.Issued
By: David J. Park Vice President, Rates and Regulatory Affairs DateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RATE SCHEDULE: T - TRANSPORTATION
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 34
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 exceeds10% 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, payCompany200% 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 closelyapproximatingtheapplicableindex.
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:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:WNA - WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/0112009 PAGE: 45
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) for gas service set forth in any Rate Schedules utilized by thecitiesoftheMid-Tex Division service area for determining normalized winter period revenues shall beadjustedbyanamounthereinafterdescribed, which amount is referred to as the "Weather NormalizationAdjustment." 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. ThefiveregionalweatherstationsareAbilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth centperMcfbythefollowingformula:
WNAFi R
HSFi x NDD-ADD) )
i
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 Mcf
Ri base rate of 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 bill (Mcf) and actual
heating degree days by month for the test year by schedule or classificationandweatherstationaspartoftheRRMfiling.
NDD billing cycle normal heating degree days calculated as the simple ten-yearaverageofactualheatingdegreedays.
ADD billing cycle actual heating degree days.
Bli base load sales for the ith schedule or classification calculated as the y-intercept of the linear regression of average sales per bill (Mcf) and actual
heating degree days by month for the test year by schedule or classificationandweatherstationaspartoftheRRMfiling.
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:WNA -WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08101/2009 PAGE: 46
WNA, =WNAF, x qq
Where q;j 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.
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Mcf Mcf/HDD Mcf Mcf/HDD
Abilene 0.98 0140 9.64 0629
Austin 1.30 0161 20.00 0815
Dallas 1.60 0212 20.12 1018
Waco 1.12 0139 11.69 0608
Wichita 1.12 0159 11.67 0649
Falls
Sample WNAF1 Calculation:
0140 x 30-17) 3393 per Mcf =2.2707 x
Where
0.98 0140 x 17) )
i Residential Single Block Rate Schedule
Ri 2.2707 per MCF
HSFi 0140 (Residential - Abilene Area)
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:WNA - WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: All Cities designated as "Group A" on the Cities Served List
EFFECTIVE DATE: Bills Rendered on or after 08/01/2009 PAGE: 47
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 - 9/15106 -10/14/06)
Bli 0.98 Mcf (Residential - Abilene Area)
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:GCR - GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 811/2009 PAGE: 68
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated
in Section (b) below.
The amount due for gas cost (Section (a)) is determined by multiplying the Gas Cost Recovery Factor
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, monthlyvolumewillbecalculatedonanMMBtubasisandthequantitieswillbeadjustedasnecessarytorecover
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 on overcharges and under charges by a utility as published by the Public Utility
Commission each December. The interest rate for calendar year 2009 is 2.09%.
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. Also includes any
prudently incurred transaction-related fees, gains or losses and other transaction costs associated
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:GCR - GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 81112009 PAGE: 69
with the use of various financial instruments that are executed by the Company for the purpose of
price volatility mitigation.
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
uncollecUble and written off which remain unpaid for each month of the reconciliation period.
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 bytheestimatedtotalresidential, 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 634698
Rate C - Commercial Service 302824
Issued By: David J. Park Vice President, Rates and Regulatory Affairs
Date Issued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:GCR - GAS COST RECOVERY
APPLICABLE TO: All Cities Except Dallas
EFFECTIVE DATE: Bills Rendered on or after 811!2009 PAGE: 70
Rate l - Industrial Service and Rate T - Transportation Service 062478
A = Adjustment applied in the current month to correct for the difference between the actual andestimatedpipelinecostrevenueofthesecondprecedingmonth, calculated by the formula:
A = R - (C - A2), where:
R = Actual revenue received from the application of the PP component in the second precedingmonth.
C = Actual pipeline costs for the second preceding month.
A2 = The adjustment (A) applied to the PP component in the second preceding month.
S = Estimated Mcf or MMBtu for the rate class for the 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 appropriatePCF. The Pipeline Cost is determined to the nearest whole cent.
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:CEE - CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO: All Cities except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8!1/2009 PAGE: 84
Purpose
Atmos Energy Mid-Tex is proposing to institute a complete Conservation & Energy Efficiency programwhichwillofferassistancetoqualifiedcustomersegmentsinreducingenergyconsumptionandloweringenergyutilitybills. The proposal is one where Atmos Energy shareholders will fund a percentage of theallowableexpensesincurredannually, with a customer rate component providing the remainder of thefunding. Following is a high-level, concept summary of the proposal. Atmos Energy Mid-Tex Divisionproposestoworkwiththecommunitiesitservestodevelopthedetailsofanewtariffandprogramsaddressingconservationandenergyefficiency.
Synopsis:
Voucher system to provide free energy savings materials and supplies to qualifying customers of AtmosMid-Tex. Qualified Customers will receive up to one thousand five hundred dollars ($1,500.00) worth ofcaulking, weather-stripping, sheathing, sealing, water heater blankets, related gas plumbing, and likematerials, other energy saving devices such as clock-thermostats, set-back devices ("covered items")from approved suppliers / retailers including necessary labor.Company will undertake efforts to enlist support from community groups, including its own EmployeeActionProgram, to assist customers with installation. If it is determined that professional installationcapabilitiesarenecessary, the parties will agree on labor assistance amounts.
Eli ibilit
Low Income - Low-income rate-payers that qualify for heating bill assistance through LIHEAP andothergovernmentenergyefficiencyprogramagenciesandallagenciesthatdistributeAtmos "Share theWarmth" funds. Agencies that allocate assistance funds denote customer as Low Income, a status thatlastsforoneyear.
Senior Citizen - Primary account holder can request eligibility through Atmos call center or web-site.Customer provides primary SSN which is verified through Social Security Administration. An accountholderthatisorturns65yearsoldinthatyearbecomeseligible.
Funding
Initial annual program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders willcontributeonemilliondollars ($1,000,000.00) to this initiative annually with ratepayers providing onemilliondollars ($1,000,000.00) per year. It is proposed that the program operate on an October 1 throughSeptember30year, with regulatory assettliability accounting employed by Atmos to track the differencebetweenprogramfundingandqualifyingprogramexpenditures. No Atmos employee labor will bechargedasaprogramexpenditure.
Administration:
A third-party administrator will coordinate qualification of customers, voucher distribution, subsequentverificationandreimbursementofeligibleexpendituresandgeneralprogramadministration. Programadministrationexpenseswillbefundedfromtheannualapprovedbudget.
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued:
ATMOS ENERGY CORPORATION
MID-TEX DIVISION REVISION NO: 0
RIDER:CEE - CONSERVATION & ENERGY EFFICIENCY
APPLICABLE TO: All Cities except Dallas
EFFECTIVE DATE: Bills Rendered on or after 8/112009 PAGE: 85
Audits will be provided all interested parties within 120 days of the end of each program year to determine
effectiveness.
Resort
Atmos shall file an annual report detailing cost to administer the program including the amounts paid out
of the program for energy conversation assistance. The report shall also detail the number of applicantsandexpendituresbygeographiclocation, including the numbers of applications rejected and acceptedandreasonifrejected. The report shall be filed with the Director of the Gas Services Division of the
Railroad Commission within 120 days of the end of each program year and with counsel of record for
municipalities served by the Mid-Tex Division.
Issued By: David J. Park Vice President, Rates and Regulatory AffairsDateIssued: