HomeMy WebLinkAbout26-1219City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
ACM: Christine Taylor
DATE: August 18, 2026
SUBJECT
&RQVLGHUDGRSWLRQRIDn ordinance of the City Council of the City of Denton, a Texas home-rule
municipal corporation, approving a negotiated settlement between the Atmos Cities Steering
Committee (“ACSC”) and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2026 rate
review mechanism filing; declaring existing rates to be unreasonable; adopting tariffs that reflect rate
adjustments consistent with the negotiated settlement; finding the rates to be set by the attached settlement
tariffs to be just and reasonable and in the public interest; approving an attachment establishing a
benchmark for pensions and retiree medical benefits; requiring the company to reimburse ACSC’s
reasonable ratemaking expenses; determining that this ordinance was passed in accordance with the
requirements of the Texas Open Meetings Act; adopting a savings clause; declaring an effective date;
UDWLI\LQJ DQG DXWKRUL]LQJ &LW\ PHPEHUVKLS LQ $&6& and requiring delivery of this ordinance to the
company and the ACSC’s legal counsel.
BACKGROUND
The City, along with 181 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division
(“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). In
2007, ACSC and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section
104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing
(arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute
rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings
under the GRIP statute.
Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration
of an RRM Tariff was reflected in an ordinance adopted by ACSC members in 2018. On or about April
1, 2026, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members.
The Company claimed that its cost-of-service in a test year ending December 31, 2025, entitled it to
additional system-wide revenues of $291.1 million.
Application of the standards set forth in ACSC’s RRM Tariff reduces the Company’s request to $273.6
million. After reviewing the filing and conducting discovery, ACSC’s consultants concluded that the
system-wide deficiency under the RRM regime should be $253.4 million instead of the claimed
$291.1 million.
After several settlement meetings, the parties have agreed to settle the case for $260.5 million. This is a
reduction of over $30 million to the Company’s initial request. This includes payment of ACSC’s
expenses. The Effective Date for new rates is October 1, 2026. ACSC members should take action
approving the Resolution/Ordinance before October 1, 2026.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Summary:
$291.1M: Atmos Original Request (system-wide)
$273.6M: RRM Tariff Applied Standard (system-wide)
$253.4M: RRM Tariff Reviewed of Applied Standard (system-wide)
$260.5M: Agreed Upon Review/Negotiation
$30.6M: Savings from Atmos Original Request
Bill Impact
The impact of the settlement on average residential rates is an increase of $13.37 on a monthly basis, or
14.15%. The increase for average commercial usage will be $44.82 or 9.90%. Atmos provided bill impact
comparisons containing these figures.
RRM Savings Over GRIP
ACSC strongly opposed the GRIP process because it constitutes piecemeal ratemaking by ignoring
declining expenses and increasing revenues while rewarding the Company for increasing capital
investment on an annual basis. The GRIP process does not allow any review of the reasonableness of
capital investment and does not allow cities to participate in the Railroad Commission’s review of annual
GRIP filings or allow recovery of Cities’ rate case expenses. The Railroad Commission undertakes a
mere administrative review of GRIP filings (instead of a full hearing) and rate increases go into effect
without any material adjustments. In ACSC’s view, the GRIP process unfairly raises customers’ rates
without any regulatory oversight. In contrast, the RRM process has allowed for a more comprehensive
rate review and annual evaluation of expenses and revenues, as well as capital investment.
While residents outside municipal limits must pay rates governed by GRIP, there are some cities served
by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. Additionally, the City of
Dallas adopted a variation of RRM which is referred to as DARR. When new rates become effective on
October 1, 2026, ACSC residents will maintain an economic monthly advantage over GRIP and will be
comparable to DARR rates.
Comparison to Other Mid-Tex Rates (Residential)
Description Average Bill Compared to RRM Cities
RRM Cities $66.18 -
DARR $66.07 + $0.11
ATM Cities $67.02 - ($0.84)
Environs $66.07 + $0.11
RECOMMENDATION
Staff recommends approval of the ordinance.
EXHIBITS
Exhibit 1 - Agenda Information Sheet
Exhibit 2 - Presentation
Exhibit 3 - Ordinance
Exhibit 4 - RRM Tariff
Exhibit 5 - Pension and Retiree Benchmark
Exhibit 6 - Average Bill Comparison
Respectfully submitted:
Matt Hamilton
Chief Financial Officer
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MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R – RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 24.35 per month
Rider CEE Surcharge $ 0.05 per month
1
Total Customer Charge $ 24.40 per month
Commodity Charge – All Ccf $ 1.03839 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
1Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
([KLELW
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C – COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 115.50 per month
Rider CEE Surcharge $ 0.00 per month
1
Total Customer Charge $ 115.50 per month
Commodity Charge – All Ccf $ 0.27784 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 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 200 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer’s deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled “Daily Price Survey.”
Replacement Index
In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
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.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer’s agent at one Point of Delivery for
use in Customer's facility.
This tariff is not available to customers with a maximum daily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10% or less. Load factor is calculated as follows: annual usage / (maximum
daily connected demand X 365). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T.
Type of Service
Company’s receipt and delivery of all gas quantities under the applicable Transportation Agreement will be
on a wholly interruptible basis subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer, then Customer may elect, at the reasonable discretion
of Company, to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities, plant personnel, or the
public when such protection cannot be achieved through the use of an alternate fuel. Where service of the
type desired by Customer is not already available at the Point of Delivery, additional charges and special
contract arrangements between Company and Customer may be required prior to service being
furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest “midpoint” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” during such month, for the MMBtu of Customer’s monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer’s receipt quantities for the month.
Overpull Fee
Upon notification by Company of an event of interruption of Customer’s deliveries, Customer will, for each
MMBtu delivered in excess of the stated level of 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as authorized
by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute,
ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract,
or agreement.
FASB ASC 740-10 (Fin48) Refund
Applicable to Customers taking service under Rate Schedules R – Residential, C – Commercial, I –
Industrial and T – Transportation.
To ensure that gas utility customers receive the benefit associated with the changes in the Company’s
Uncertain Tax Positions (“UTPs”) arising from recognition of Texas Margin Tax returns.
The decrease shall be calculated as follows:
Beginning with implementation of rates from the negotiated RRM Tariff, and annually thereafter, the
portion of UTP liabilities identified in Schedule FIN48-1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUD No. 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year’s calculation will
include a true-up (+ or - ) due to account for over/under collections. Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is required to give effect to the amount to be refunded to
customers. However, any amount refunded to customers shall be fully subject to review for
reasonableness and accuracy in the gas utility’s next statement of intent proceeding with the Railroad
Commission of Texas, and if applicable, the gas utility shall be required to reconcile any discrepancies.
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s
monthly bill in each month for a 12-month period. The refund amount by month by Rate Schedule is
shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (0.14)
Rate C – Commercial Sales $ (0.49)
Rate I – Industrial Sales $ (10.47)
Rate T – Transportation $ (10.47)
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Unprotected Excess Deferred Income Tax Amortization
The allocated RRM Cities balance of the Unprotected portion of the Excess Deferred Income Taxes
(“EDIT”) remaining after implementation of rates at October 1, 2026 shall be applied to each Rate
Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill
for a one-month period. The refund amount by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (4.45)
Rate C – Commercial Sales $ (14.80)
Rate I – Industrial Sales $ (319.02)
Rate T – Transportation $ (319.02)
Maximum Allowable Operating Pressure (“MAOP”) Hydrostatic Testing Cost Recovery
The allocated RRM Cities balance of the MAOP Hydrostatic Testing Cost as of December 31, 2025 is to
be recovered through a monthly rate. This monthly rate shall be applied to each Rate Schedules R –
Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill for
approximately twelve (12) months or until all approved costs are recovered from the applicable customer
classes. The monthly recovery rate by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ 0.30
Rate C – Commercial Sales $ 0.98
Rate I – Industrial Sales $ 21.17
Rate T – Transportation $ 21.17
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi =Ri
(BLi +(HSFix ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the i
th schedule or
classification.
HSFi = heat sensitive factor for the i
th schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the i
th schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA i =WNAFix q ij
Where q ij is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 9.78 0.1448 91.89 0.8018
Austin 9.07 0.1318 213.26 0.9418
Dallas 12.87 0.1937 192.49 1.1269
Waco 9.39 0.1261 159.17 0.8068
Wichita
Falls
10.61 0.1364 133.65 0.6965
Weather Normalization Adjustment (WNA) Report
On or before June 1 of each year, the company posts on its website at
www.atmosenergy.com/MTXtariffs, in Excel format, a Weather Normalization Adjustment (WNA) Report
to show how the company calculated its WNAs factor during the preceding winter season. Additionally,
on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA
Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that
Division.
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MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R – RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 24.35 per month
Rider CEE Surcharge $ 0.05 per month
1
Total Customer Charge $ 24.40 per month
Commodity Charge – All Ccf $ 1.03839 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
1Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C – COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 115.50 per month
Rider CEE Surcharge $ 0.00 per month
1
Total Customer Charge $ 115.50 per month
Commodity Charge – All Ccf $ 0.27784 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company’s Tariff for Gas Service.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 19196. Surcharge billing effective July 1, 2026.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 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 200 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer’s deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled “Daily Price Survey.”
Replacement Index
In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I – INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
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.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at mdtx-div-plantprotection@atmosenergy.com.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer’s agent at one Point of Delivery for
use in Customer's facility.
This tariff is not available to customers with a maximum daily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10% or less. Load factor is calculated as follows: annual usage / (maximum
daily connected demand X 365). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T.
Type of Service
Company’s receipt and delivery of all gas quantities under the applicable Transportation Agreement will be
on a wholly interruptible basis subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer, then Customer may elect, at the reasonable discretion
of Company, to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities, plant personnel, or the
public when such protection cannot be achieved through the use of an alternate fuel. Where service of the
type desired by Customer is not already available at the Point of Delivery, additional charges and special
contract arrangements between Company and Customer may be required prior to service being
furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 2,304.50 per month
First 0 MMBtu to 1,500 MMBtu $ 0.9582 per MMBtu
Next 3,500 MMBtu $ 0.7018 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.1505 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T – TRANSPORTATION
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest “midpoint” price for the Katy point listed in Platts Gas Daily in the table
entitled “Daily Price Survey” during such month, for the MMBtu of Customer’s monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer’s receipt quantities for the month.
Overpull Fee
Upon notification by Company of an event of interruption of Customer’s deliveries, Customer will, for each
MMBtu delivered in excess of the stated level of 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as authorized
by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute,
ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract,
or agreement.
FASB ASC 740-10 (Fin48) Refund
Applicable to Customers taking service under Rate Schedules R – Residential, C – Commercial, I –
Industrial and T – Transportation.
To ensure that gas utility customers receive the benefit associated with the changes in the Company’s
Uncertain Tax Positions (“UTPs”) arising from recognition of Texas Margin Tax returns.
The decrease shall be calculated as follows:
Beginning with implementation of rates from the negotiated RRM Tariff, and annually thereafter, the
portion of UTP liabilities identified in Schedule FIN48-1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUD No. 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year’s calculation will
include a true-up (+ or - ) due to account for over/under collections. Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is required to give effect to the amount to be refunded to
customers. However, any amount refunded to customers shall be fully subject to review for
reasonableness and accuracy in the gas utility’s next statement of intent proceeding with the Railroad
Commission of Texas, and if applicable, the gas utility shall be required to reconcile any discrepancies.
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s
monthly bill in each month for a 12-month period. The refund amount by month by Rate Schedule is
shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (0.14)
Rate C – Commercial Sales $ (0.49)
Rate I – Industrial Sales $ (10.47)
Rate T – Transportation $ (10.47)
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR – SURCHARGES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Unprotected Excess Deferred Income Tax Amortization
The allocated RRM Cities balance of the Unprotected portion of the Excess Deferred Income Taxes
(“EDIT”) remaining after implementation of rates at October 1, 2026 shall be applied to each Rate
Schedules R – Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill
for a one-month period. The refund amount by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ (4.45)
Rate C – Commercial Sales $ (14.80)
Rate I – Industrial Sales $ (319.02)
Rate T – Transportation $ (319.02)
Maximum Allowable Operating Pressure (“MAOP”) Hydrostatic Testing Cost Recovery
The allocated RRM Cities balance of the MAOP Hydrostatic Testing Cost as of December 31, 2025 is to
be recovered through a monthly rate. This monthly rate shall be applied to each Rate Schedules R –
Residential, C – Commercial, I – Industrial and T – Transportation customer’s monthly bill for
approximately twelve (12) months or until all approved costs are recovered from the applicable customer
classes. The monthly recovery rate by Rate Schedule is shown in the table below:
Rate Schedules Rate
Rate R – Residential Sales $ 0.30
Rate C – Commercial Sales $ 0.98
Rate I – Industrial Sales $ 21.17
Rate T – Transportation $ 21.17
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi =Ri
(BLi +(HSFix ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the i
th schedule or
classification.
HSFi = heat sensitive factor for the i
th schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the i
th schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA i =WNAFix q ij
Where q ij is the relevant sales quantity for the jth customer in ith rate schedule.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2026
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 9.78 0.1448 91.89 0.8018
Austin 9.07 0.1318 213.26 0.9418
Dallas 12.87 0.1937 192.49 1.1269
Waco 9.39 0.1261 159.17 0.8068
Wichita
Falls
10.61 0.1364 133.65 0.6965
Weather Normalization Adjustment (WNA) Report
On or before June 1 of each year, the company posts on its website at
www.atmosenergy.com/MTXtariffs, in Excel format, a Weather Normalization Adjustment (WNA) Report
to show how the company calculated its WNAs factor during the preceding winter season. Additionally,
on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA
Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that
Division.
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