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HomeMy WebLinkAboutR2008-034s:\our documents\resolutions\08\rrm res 08 27 08.doc RESOLUTION NO. 2OOv~ 0.~~ A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING A CHANGE IN THE TARIFFS OF ATMOS ENERGY CORPORATION, MID-TEX DIVISION ("ATMOS") AS A RESULT OF A SETTLEMENT BETWEEN ATMOS AND THE ATMOS TEXAS MUNICIPALITIES ("ATM"); FINDING THAT THE RATES SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FIlVDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTNE DATE; AND REQUIRING DELIVERY OF THE RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. 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"), including Railroad Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to Section 104.301 of GURA, GUD Docket No. 9670 and GUD Docket No. 9762; and WHEREAS, on February 11, 2008, ATM and Atmos entered into a settlement agreement which provided for a new mechanism to review changes in rates known as the "Rate Review Mechanism" or "RRM"; and WHEREAS, pursuant to the new regulatory mechanism Atmos filed for an increase in rates of approximately forty-t~vo 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, benefitting thousands of fixed income and low- use customers; and s:\our documents\resolu[ions\08\rrm res 08 27 08.doc 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, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. SECTION 2. The amended tariffs in Attachment A are hereby adopted to become effective on October 1, 2008. SECTION 3. The proof of revenues in Attachment B, the average bill calculations, and the document entitled "Rate Review Mechanism - 1St Year of Effective Period -Allocation of Settlement Increase by Customer Class" has been relied upon in connection with the adoption of the amended tariffs. SECTION 4. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 5. This resolution shall become effective from and after its passage with rates authorized by the Attached Tariffs to be effective in accordance with the terms of the Settlement Agreement. SECTION 6. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LB J Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, at Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1120, Austin, TX 78701. PASSED AND APPROVED this the ~~ day of , 2008. M O ,MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Page 2 s:\our documents\resolutions\08\rrm res 08 27 08.doc APPROVED AS TO LEGAL FORM: JOHN M. KNIGHT, INTERIM CITY ATTORNEY BY: Page 3 ATMOS ENERGY CORPORATION MID TEX DNiSION RRC TARIFF NO: 19843 REVISION NO: 0 RATE SCHEDULE:'R -RESIDENTIAL SALES APPLICABLE TO:Entire Division {except Environs areas and the City of Dallas) EFFECTIVE DATE:10!0112008 PAGE: 23 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery,. additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill wail be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Change Amount Customer Charge per Bill 7.00 per month Commodity Charge -All Mcf 2.24.10 per Mcf. Gas Gost Recovery: Plus an amount far.gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise Fee Adjustment Plus.an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required: Notice Service. hereunder and' the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/'13/2008 ATMOS ENERGY CORPORATION MID-TEX DNISION RRC TARIFF NO.: 19844 REVISION NO: 0 RATE SCHEDULE:C -COMMERCIAL SALES APPLICABLE TO:Entire Division (except Environs areas and the City of Dallas) EFFECTNE DATE:10!01/2008 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 contracf arrangements between Company and Customer may be required prior to service being famished. 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 F2ecovery: Plus an amount for gas costs and upstream transportation costs calculated iri accordance rrvitFi Part {a) and Part (b), respectively, of Rider GCR. Weather Normalisation Adjustment: Plus or Minus an amount for weather normalization calculated iri accordance with Rider WNA. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRfVI. 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 maybe required. Notice Service hereunder and the rates for services provided. are subject to the orders of regulatory bodies havingjurisdiction 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 RRC TAR[FF NO: 19842 MID-TEX DIVISION REVISION NO: 0 RATE SCHEDULE:I -INDUSTRIAL SALES APPLICABLE TO:Entire Division (except Environs areas and the City of Dallas} EFFECTNE DATE:10(0912008 PAGE: 25' Application Applicable to Industrial Customers with a maximum daily usage .(MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day wiil 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 tieing 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 perMeter 425.00 per month First 0 MMBtu to 1,500 N1MBtu 0.2733 per MMBtu Next 3,500 MMBtu 0.1993 per MMBtu All MNIBtu 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 Nteehanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise .F.ee 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 appl'~cable rider(s}. Curtaitmerit 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 poinf listed iri Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price 5urvey." Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION RRC TARIFF NO: 19842 REVISION NO: 0 RATE SCHEDULE:I -INDUSTRIAL SALES APPLICABLE TO:Entire Division (except Environs areas and the City of Dallas) EFFECTNE DATE:90/0112008 PAGE: 26 Replacement tndez Iri the event the "midpoint o~ "common° price for the Katy point listed in Plaits Gas Daily iri 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 Ari Agreemenf 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 ENEf2GY COi2PORATION RRC 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:10/01/2008 PAGE: 2T 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 ane 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 ofDelivery, additional charges and special confract arrangements between Company and Customer may be required prior to service being furnished. Mon#hly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed. below: Charge.Amount Customer Charge per Meter 425.00 per month First 0 MNIBtu to '1,500 MMBtu 0.2733 per MMBtu Next 3,500 MMBtu 0.1893 per fVIMBtu All MMBtu over 5,000 MMStu 0.0427 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation .costs in accordance with Part (bj 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 irr 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 Rafe Schedule. will be charged based on the quantities determined under the applicable Transportation Agreement.and quantifies will not be aggregated for any Customer with multiple Transportation Agceements~for the purposes of such fees. Issued 13y: David J. Park Vice President, Rates and Regulatory Affairs Dale Issued: 08/13/2008 ATMOS ENERGY CORPORATION RRC TARIFF NO: 19845 MID-TEX DIVI$iON REVISION NO: 0 RATE SCHEDULE:T-TRANSPORTATION APPLICABLE TO:Entire Division {except Environs areas and the City of Dallas) EFFECTIVE DATE:10/01!2008 PAGE: 28 Monthly Imbalance Fees Customer shall pay Company the greater of {i) $0.10 per MMBtU, or {ii) 150°k of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in P/atfs Gas Daily in the table entitled `Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as det7ned in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities'for the month. Curtailment Overpull Fee Upon notification by~ Company of an event of curtailment or interruption of Customers 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 fisted in P!efts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement lndex In the event the "midpoint° or "common° price for the Katy point listed in Plaits Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas Industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13!2008 ATlti'IOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER:GCR -GAS COST RECOVERY APPLICABLE TO:Entire Division EFFECTIVE DATE:10/01/2006 PAGE: 40 Applicable to Rate R, Rate C., and .Rate I for al{ gas sales made by Company, and applicable to Rate R, Rate C, Rate I, and Rate T for recovery of Pipeline Systerri 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) belovr. The amount due for gas cost {Section (a)) is determined by multiplying the Gas Cost Recovery Factor GCRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will be calculated on a Mcf basis. For Customers receiving service under Rate I; monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to recover actual gas costs. The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor PCF) by the Customer's monthly volume. Far Customers receiving service under Rate R and Rate C, monthly volume will be calculated an an Mcf basis. For Customers receiving service under Rate I and Rate T, monthly volume will be calculated on an MMBtu basis and the' quantifies 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 unrecove~ed 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.lncurred, 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 Jurie billing month"s. The interest rate to be used is the annual interest rate publ'~shed by the PUC every December. The interest rate of~2008 is 4.89%. Actual Gas Cost Incurred =The sum of the costs booked in Atrrios Energy Corp., Mid-Tex Division account numbers 800 through 813.and 858 of the FERC Uniform System of Accounts, including the net impact of injecting and withdrawing gas from storage. Also includes a credit or debit for any out-of-period. adjustments or unusual or nonrecurring costs typically considered gas costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees. Actual Gas Cost Billed =EGCF rimultiplied by the monthly volumes billed to Residential, Commeraal and Industrial Sales customers, less the total amount of gas cost determined fo have been uncollectible and written off which remain unpaid for each month of the .reconciliation period. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER:GCR -GAS COST RECOVERY APPLICABLE TO:Entire Division EFFECTIVE DATE:10/01/2008 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 thefollowing amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off, Gas Cost Co{iected 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 fnclucied as a separate line item surcharge. b) Plpeltne 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: Pi eline Cost Rate.Class.Allocation Factor D Rate R -Residential Service 634698 Rate C -Commercial Service 302824 Rate I - Indus#rial Service and Rate T ~= Trans ortation ServJce 062478. _. . A~=Adjustment applied in the cun'ent 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 = Ac#ual 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. Panic Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 AT1UiOS ENERGY CORPORATION MtD-TEX DNISION REVISION NO: 0 RIDER:GCR -GAS COST RECOVERY APPLtCA6l.E T0:Entire Division EFFECTNE GATE:10!01/2008 PAGE: 42 S =Estimated Mcf or MMBtu for the rate class for the current billing month. The PCF is calculated to the nearest 0.0001 cent. The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the appropriate PCF. The Pipeline Cost is determined to the nearest whole cent. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION NO: 0 RIDER:FF -FRANCHISE FEE ADJUSTMENT APPLICABLE TO:Entire Division EFFECTNE DATE:1D/01120D8 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 IEmits. This does not apply to Environs customers. Monthly Adjustment Company. will adjust Customer's bill each month in an amount equal to the municipal franchise fees payable for the Gas Service provided to Customer by Company. Municipal franchise flees are determined by each municipality's franchise ordinartc?. 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. tssued By:. David J_ Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2A08 TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DNISION RtDEFt:Rider WNA -Weather Normalization Adjustment APPLICABLE TO:Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE:11/0112008 PAGE: 1 OF 2 RIDER WfdA -Weather MormaEization Adiustmenf Provisions for Adiustment The base rate per fdlcf (1,000,000 Bfu) 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 comrriercial 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 Adlushnent The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Mcf by the following formula: HSFi x (NDD-ADD) ) WNAFi =Ri -- Blti + (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 fnr the ith schedule or classification calculated as the slope of the linear regression of average sales per bill (Mcf) and actual heating degree days: by month for the test year'by schedule or classification and weather station as part of the RRM filing. NOD =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 far the ith schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA, = WNAF~ x qt TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID TEX DIVISIOPI RATE SCHEDULE:Rate WNA -Weather Normalization Adjustment APPLICABLE TO:Entire System (except Environs areas and the City of Dallas) REV[SlON: DATE: EFFECTNE DATE:i1/0112008 PAGE: 2 OF 2 Where q~ is the relevant sales quantity for the jth customer in ith rate schedule. F'ilinos 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 SehsitivitV (HSF) Factors Residential Commercial Base use HSF Base use HSF tue~Ehe. e~~~;..., 11Mf M~f!{-Inn Mrf Mrf/Hnrl Abilene 1.27 ~ .0130 10.93 0638 Austin 1.29 ( .0133 1.8.47 0641 Dallas 1.79 .0186 20.83 0878 1Naco 1.30 .0141 11.4.1 0617 Wichita Falls 1.35 .0143 11.62 0540 Sample WIVAF; Calculation: 1533 per Mcf = Where 0131 x 1.2267 x 1.14 +0131 x 17) ) 1 = Residential Single Block Rate Schedule Ri = 1.2267 per MCF (Rate R -Final Order GUD.No. 9670) HSFi = .0131 (Residential -Abilene Area) NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area - 9115/46 10114106) ADD = 17 HDD (Actua! HDD for Abilene Area - 9115706 -1 0!14/06) 30-17) ) BLi = 1.14 Mcf (Residential -Abilene Area) ATMOS ENERGY CORPORATION MID-TEX DNISION REVISION NO: 0 RIDER:CEE - CONSERVATION ~ ENERGY EFFICIENCY APPLICABLE TO:Entire Division EFFECTIVE DATE:1!7/0112008 PAGE: 58 Puraose 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 provid€ng the remainder of~ the funding. Following is ahigh-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 Atinos Mid-Tex. Qualified Custorrters 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-thermosta#s:,. set-back devices {°covered items°) from approved suppliers /retailers. Company will undertake efforts to enlist support from community groups, including its own Employee Action Program, to assist customers with installation. If it. is determined that professional installation capabilities are necessary, the parties will agree on labor assistance amounts. Eli ibiii 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 !fiat allocate assistance fuhds 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 #hrough Social Security Administration. And account. holder that is or turns 65 years old in~that year becomes eligible. Fundin Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will contribute one million dollars ($1,000,000.00) to .this initiative annuaity with ratepayers providing one million dollars ($1,000,000.00) per year. It is proposed that the program operate on. an October 1 through September 30 year; with benefits being capped at the two million dollar level for the initial program period. Administration: A third-party administrator will coordinate qualification of customers,. voucher distribution, subsequent verification and reimbursemenf of eligible expenditures and general program administration. Program administration expenses will be funded from the annual approved budget Audits wilt be provided all interested parties within 120 days of the end of each program year to determine effectiveness. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATMOS ENERGY CORPORATION MID-TEX DIVISION REVISION N0: 0 RIDER:CEE.-CONSERVATION & ENERGY EFFICIENCY APPLICABLE TO:Entire Division EFFECTIVE DATE:10/01/2008 PAGE:- 59 ReQOrt Afmos shall file an annual report detailing cost to administer ttie program with details of the amounts paid ouf of program for energy conversation assistance. The report shall also detail number of appiicanfs, number rejected and accepted and reason rejected. The report shall be filed with the Gas Service Director. Issued By: David J..Park Vice President, Rates and Regulatory Affairs Date Issued: 08/1 312 008 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference a) (b) (c) Rate R 1 Rate Characteristics: 2 Customer Charge 3 2007 RRM True-up 4 5 Consumption Charge ($/Mcf) 6 7 Rider GCR Part A 8 Rider GCR Part B 9 10 Billin4 Units (1 ): 11 Bills 12 Total MCF 13 14 Present Revenue: RRM Settlement Tariff, 10.69 Rate R 0.00 RRM Settlement Tariff, 1.2710 Rate R 8.1244 Schedule H 0.6243 schedule t 17,069,679 Billing Determinants Study 78,708,921 Billing Determinants Study 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 B 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 Description Total Reference a) (b) (c) Rate C 1 Rate Characteristics: 2 Customer Charge 3 2007 RRM True-up 4 RRM Settlement Tariff, 20.28 Rate C 0.00 RRM Settlement Tariff, 5 Consumption Charge ($/Mcf) $0.7104 Rate C 6 7 Rider GCR Part A $8.1244 Schedule H 8 Rider GCR Part B $0.5228 Schedule I 9 10 Billing Units t1): 11 Bills 1,434,516 Billing Determinants Study 12 Total MCF 50,233,642 Bilging Determinants Study 13 14 Present Revenue: 15 Customer Charge 29,091,984 16 2007 RRM True-up 17 Consumption Charge 35,685,979 18 Base Revenue 64,777,964 19 Rider GCR Part A 408,116,524 20 Rider GCR Part B 26,261,046 21 Subtotal 499,155,534 22 Revenue Related Taxes 30,038,679 23 24 Total Present Revenue- Rate C 529,194,213 25 26 Note 1: See Billing Determinants Study for details. ATMOS ENERGY CORP., MID-TtJC DIVISION SUMMARY PROOF OF REVENUE AT CURRENT RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference a) (b) (c) Rate 18T 1 2 3 4 5 6 7 8 9 10 11 12 i3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Rate Characteristics: Customer Charge 2007 RRM True-up Block 1 ($/MMBTU) Block 2 ($/MMBTU) Block 3 ($/MMBTU) Rider GCR Part A Rider GCR Part B Consumption Characteristics: Block 1 Block 2 Block 3 Billin4 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, Rafe I & 0.1410 T RRM Settlement, Rate I & 0.0302 T 8.1244 0.2938 Schedule H Schedule I 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 40,967,841 Note 1: See Billing Determinants Study #or details. 1} Billing Determinants Study Billing Determinants Study Biling Determinants Study Billing Determinants Study 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 R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rate Characteristics: Customer Charge Consumption Charge ($/Mcf) 2007 RRM True-up {$/Mcf) Rider GCR Part A Rider GCR Part B Billing Units (1): Bills Total MCF Proposed Revenue: Customer Charge Consumption Charge Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Proposed Revenue- Rate R RRM Settlement Agreement, 7.00 Pg 2, Item 5 2.1600 0.0810 8.1244 0.6243 17,069,679 78,708,921 119,487,753 176,385,175 295,872,928 639,460,135 49,140,231 984,473,295 59,244,614 1,043,717,909 Note 1: See Billing Determinants Study for details. Settlement Allocation Settlement Allocation Schedule H Schedule I WP J-1.1 WP J-1.1 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference Rate 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 Rate Characteristics: Customer Charge Consumption Charge ($/Mci) 2007 RRM True-up ($/Mcf) Rider GCR Part A Rider GCR Part B Billing Units (1): Bills Total MCF Prot~osed Revenue: Customer Charge Consumption Charge Base Revenue Rider GCR Part A Rider GCR Part B Subtotal Revenue Related Taxes Total Proposed Revenue- Rate C RRM Settlement Agreement, 13.50 Pg 2, Item 5 0.9442 0.0367 8.1244 0.5228 1,434,516 50,233,642 19,365,966 49,273,373 68,639,339 408,116,524 26,261,046 503,016,909 30,271,052 533,287,962 Note 1: See Billing Determinants Study for details. Settlement Allocation Settlement Allocation Schedule H Schedule I WP_J-1.2 WP_J-1.2 ATMOS ENERGY CORP., MID-TEX DIVISION SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Line Description Total Reference a} (b) (c) Rate 18T 1 Rate Characteristics: 2 Customer Charge 425.00 Settlement Allocation 3 4 Block 1 ($/MMBTU)0.2352 Settlement Allocation 5 Block 2 ($/MMBTU)0.1715 Settlement Allocation 6 Block 3 ($/MMBTU)0.0367 Settlement Allocation 7 2007 RRM True-up ($/MMBTU):Settlement Allocation 8 Block 1 ($/MMBTU)0.0381 9 Block 2 ($/MMBTU)0.0278 10 Block 3 ($/MMBTU)0.0060 11 Rider GCR Part A 8.1244 Schedule H 12 Rider GCR Part B 0.2938 Schedule I 13 14 Consumption Characteristics: 15 Block 1 (First 1,500 MMBTU)0.23502 16 Block 2 (Next 3,500 MMBTU)0.26655 1) 17 Block 3 (C+ver 5,000 MMBTU)0.49843 1) 18 19 Billing Units (1): 20 Bills 10,052 WP J-1 21 Block 1 9,522,217 WP_J-1 22 Block 2 10,799,921 WP_J-1 23 Block 3 20,195,218 WP_J-1 24 Total MMBTU 40,517,356 25 26 Sales Volumes 2,331,063 WP_J-1 27 28 Proposed Revenue: 29 Customer Charge 4,272,100 30 Block 1 2,602,422 31 BIoGc 2 2,152,424 32 Block 3 862,336 33 Base Revenue 9,889,282 34 Rider GCR Part A 18,494,542 35 Rider GCR Part B 11,902,411 36 Subtotal 40,286,235 37 Revenue Related Taxes 2,424,385 38 39 .Total Proposed Revenue- Rate 18~T 42,710,620 40 41 Note 1: See Billing Determinants Study for details. ATMOS ENERGY CORP., MID-TEX DNISION RATE REVIEW MECHANISM -1ST YEAR RATE EFFECTNE PERIOD ALLOCATION OF SETTLEMENT INCREASE BY CUSTOMER CLASS Line Allocated Total True-Up Prospective No. Customer Class Settlement Increase ~'} Amount ~'~ Amount i'~ 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 8~ 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 DMSION REVENUE REQUIREMENTS BY SERVICE CLASS TEST YEAR ENDING DECEMBER 31, 2007 Une No.Description Current Revenues Proposed Revenues 1 Proposed Change Percent Change a)b)c)d)e} 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 lndustriaVTransportation 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 1,616,916,878 1,636,916,360 19,999,481 1.24% 6 7 Note: 1 Proposed Revenues are the resuR of the appECation of the proposed rates to b~4ig determErards r. Errata l~ i Rate R ~ a.s Mcf 2 Customer diarge 3 Consu:npSoncharge 4 Rider GCR Part A 5 Rider GCR Part B 6 7 Subtota! 8 Rider FF 8 Rider TAX 9 Total 10 11 Custartierdrarga 12 Consumption charge 13 Rider GCR Part A 14 Rader GCR Part B 15 16 Sub~~l 17 Revenuerelafed Tax Reimbursement 18 Total 19 20 21 Rate C r~ 3li.3 Ma 22 Customer charge 23 Constunptiorl charge 24 Rider GCR Part A 25 Rider GCR Part B 2b Z7 28 Subtotal 29 Reverwe•related Tax Reimixasemerit 30 Tatal 31 32 Custorrrercharge 33 Consumption charge 34 Rider GCR Part A 35 Rider GCR Part B 36 37 SuMotal 38 Revernre-re4~ted Taz Refmtxmemerd 39 Total 40 41 ReM 1 ~ 4031 MMBTU 42 Cusloarer drarge 43 Consumption dtarge 44 Consumpton dterge 45 Conuumption charge 46 Rider GCR Part A 47 Rider GCR Part B 48 49 Subtotal 50 Ravarwe-related Talc Reimbursemera 51 Total 52 53 Customer charge 54 Consumption oharpe 55 Cor>tumpikn dmrge 58 Consumption ctwga 57 Rider GCR Part A 58 Rider GCR Part B 59 SuMotal 60 Revenue elated Tax Reimbursement 61 Trial 62 63 Rafe T ~t4031 MMBTU 64 Customer charge 65 Consumption charge 66 Consranplloncharge 67 Consumption charge 68 Rider GCR Pert B 69 70 Subtotal 71 Reverure-related Tax Refmb~ent 72 Tort T3 74 Custarnercharge 75 Consumption duuge 7S Consumption chrffge n Corut.rwuen 78 Rider GCR Part B T9 Subtotal 80 Revenue{elated Tax Reimbursement 81 Total ATMOS EWERGY CORP., MID-TEX DNISION AVERAGE BILL COMPARISON TEST YEAR ENDING DECEMBER 31, 2007 WP_J3.2 (Avg Cull) rase sa 9 CURRENT PROPOSED 510.69 4.6 MCF X 51.2710 =5.85 4.6 MCF X 8,1244 =37.37 4.6 A1CF X 50.6243 2.87 556.78 56.78 X 0.06018 =3.42 560.211 E7.00 4.6 MCf X 522410 10.31 4.6 MCF X 58.1244 =37.37 4.6 MCF X 50.6243 =2.67 557.55 57.55 X 0.06018 =3.46 861.01 CURRENT PROPOSED 52028 35.3 MCf X 50.7104 =25.04 35.3 MCf X 8.1244 •286.40 35.3 MCF X 0.5228 =18.43 5350.15 350.15 X 0.06078 =21.07 37122 513.50 35.3 MCF X 50.8809 34,58 35.3 MCF X 6.1244 =286.40 35.3 MCF X 50.5228 =18.43 5352.91 E352.91 X 0.06018 =2124 5374.15 CURRENT PROPOSED 5425.00 1,500 MMBTU X 50.1933 =289.95 2,531 MMBTU X 50.1410 356.84 0 MMBTU X 50.0302 0.00 4,031 MMBTU X 58.1244 =32,747.50 4,031 MMBTU X 502938 1,184.08 535,003.37 536,003.37 X 0.06018 =2,108.47 537,109.84 S 425.00 1,500 MMBTU X 502733 409.95 2,531 MIABTU X 50.1993 504.38 0 MIABTU X 50.0427 =0.00 4,037 MMHTU X 58.1244 =32,747.50 4,031 MMBN X 50.2938 =1.184.08 535,270.81 535,270.91 X 0.06018 =2,12257 537,393.48 CURRENT PROPOSED 5425.00 1,500 MMBTU X 50.1933 =289.&5 2,537 MMBTU X 50.1410 =356.84 0 MMBTU X 50.0302 =0.00 4,037 NUABTU X 50.2938 1,184.08 52,255.87 52,255.87 X 0.06018 =135.76 2,391.63 S 425.00 1.500 MMBTU X 0.2733 =409.95 2,531 MMBTU X 0.1993 =504.38 o MMBTU x so.o427 =o.oo 4,031 Mt+/83TU X 50.2938 =1.184.08 2,523.41 52,523.41 X 0.06018 =151.88 52,675.27