21-2019ORDINANCE NO. 21-2019
AN 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 2021 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 ATTACHED EXHIBIT ESTABLISHING A
BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; APPROVING AN
ATTACHED EXHIBIT REGARDING AMORTIZATION OF REGULATORY LIABILITY;
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; AND REQUIRING DELIVERY
OF THIS ORDINANCE TO THE COMPANY AND THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of Denton, a Texas home -rule municipal corporation, ("City") is a
gas utility customer of Atmos Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or
"Company"), and a regulatory authority with an interest in the rates, charges, and services of
Atmos Mid -Tex; and
WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a
coalition of similarly -situated cities served by Atmos Mid -Tex ("ACSC Cities") that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates charged in
the Atmos Mid -Tex service area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate
Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC
Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by
the Legislature, and that will establish rates for the ACSC Cities based on the system -wide cost of
serving the Atmos Mid -Tex Division; and
WHEREAS, the current RRM tariff was adopted by the City in a rate resolution in
2020; and
WHEREAS, on about April 1, 2021, Atmos Mid -Tex filed its 2021 RRM rate request with
ACSC Cities based on a test year ending December 31, 2020; and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2021 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues
identified in the Company's RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants,
recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $22.78
million applicable to ACSC Cities with an Effective Date of December 1, 2021; and
WHEREAS, ACSC agrees that Atmos' plant -in-service is reasonable; and
WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed from
future reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS, the two month delayed Effective Date from October 1 to December 1 will
save ACSC ratepayers approximately $3.8 million off new rates imposed by the attached tariffs
(Exhibit A); and
WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with
the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are
just, reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Exhibit B); and
WHEREAS, the settlement agreement establishes an amortization schedule for regulatory
liability prepared by Atmos Mid -Tex (Exhibit C); and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses
associated with RRM applications; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the findings set forth in this Ordinance are hereby in all things approved.
SECTION 2. That, without prejudice to future litigation of any issue identified by ACSC,
the City Council finds that the settled amount of an increase in revenues of $22.78 million for
ACSC Cities represents a comprehensive settlement of gas utility rate issues affecting the rates,
operations, and services offered by Atmos Mid -Tex within the municipal limits arising from
Atmos Mid-Tex's 2021 RRM filing, is in the public interest, and is consistent with the City's
authority under Section 103.001 of the Texas Utilities Code.
SECTION 3. That despite finding Atmos Mid -Tex.'s plant -in-service to be reasonable,
ACSC is not foreclosed in future cases from evaluating the reasonableness of costs associated with
incidents involving leaks of natural gas.
SECTION 4. That the existing rates for natural gas service provided by Atmos Mid -Tex
are unreasonable. The new tariffs attached hereto and incorporated herein as Exhibit A, are just
and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional $22.78
million from customers in ACSC Cities, over the amount allowed under currently approved rates.
Such tariffs are hereby adopted.
2
SECTION 5. That the ratemaking treatment for pensions and retiree medical benefits in
Atmos Mid-Tex's next RRM filing shall be as set forth on Exhibit B attached hereto and
incorporated herein.
SECTION 6. That subject to any future settlement or decision regarding the balance of
Excess Deferred Income Tax to be refunded to ratepayers, the amortization of regulatory liability
shall be consistent with the schedule found in Exhibit C attached hereto and incorporated herein.
SECTION 7. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Company's 2021 RRM filing.
SECTION 8. That to the extent any resolution or ordinance previously adopted by the City
Council is inconsistent with this Ordinance, it is hereby repealed.
SECTION 9. That the meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
SECTION 10. That if any one or more sections or clauses of this Ordinance is adjudged
to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining
provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
SECTION 11. That consistent with the City Ordinance that established the RRM process,
this Ordinance shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after December 1, 2021.
SECTION 12. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs Mid -Tex Division, Atmos Energy
Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato,
General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
SECTION 13. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by I�C N o-^ j QpC. i� _ and
seconded by ` C.k. 4 The Ordinance was passed and approved by
the following vote[ ( 2 -
Aye Nay Abstain Absent
Gerard Hudspeth, Mayor: � v
Vicki Byrd, District 1: ✓ _
Brian Beck, District 2:
Jesse Davis, District 3:
Alison Maguire, District 4: ✓
Deb Armintor, At Large Place 5:_
Paul Meltzer, At Large Place 6: %1
PASSED AND APPROVED this the " day of&-CAf K"' , 2021.
GERARD aUT59PETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
CATHERINE CLIFTON, INTERIM CITY ATTORNEY
BY:
C!
Exhibit A
to 2021 RRM Resolution or Ordinance
Mid -Tex Tariffs
Effective December 1, 2021
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
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 12/01/2021
PAGE:
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
$ 20.85 per month
Rider CEE Surcharge
$ 0.05 per month'
Total Customer Charge
$ 20.90 per month
Commodity Charge — All Ccf
$0.27979 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
'Reference Rider CEE- Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2021.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RRC Tariff No:
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 12/01/2021
PAGE: Page
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
$ 56.50 per month
Rider CEE Surcharge
$ 0.01 per month'
Total Customer Charge
$ 56.51 per month
Commodity Charge — All Ccf
$ 0.12263 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
' Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 90170. Surcharge billing effective July 1, 2021.
MID-TEX DIVISION RRC Tariff No:
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 12/01/2021
PAGE:
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 1,054.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.4330 per MMBtu
Next 3,500 MMBtu
$ 0.3171 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0680 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
RRC Tariff No:
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 12/01/2021
PAGE:
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.
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
T—TRANSPORTATION
APPLICABLE TO:
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE:
Bilis Rendered on or after 12/01/2021 PAGE:
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 1,054.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.4330 per MMBtu
Next 3,500 MMBtu
$ 0.3171 per MMBtu
All MMBtu over 5,000 MM13tu
$ 0.0680 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX,
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.90 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.
MID-TEX DIVISION RRC Tariff No:
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 12/01/2021
PAGE:
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint' or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate T, customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
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 12/01/2021
PAGE:
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 Adiustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
NDD = billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
ADD = billing cycle actual heating degree days.
Bli = base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA = WNAFi x qj
Where qj 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 12/01/2021
PAGE:
Base Use/Heat Use Factors
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.comlmtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
Residential
Commercial
Base use
Heat use
Base use
Heat use
Weather Station
Ccf
CcflHDD
Ccf
Ccf1HDD
Abilene
11.88
0.1459
85.39
0.6996
Austin
10.34
0.1452
194.82
0.9398
Dallas
15.21
0.1915
148.19
1.0986
Waco
10.63
0.1373
130.39
0.7436
Wichita
12.63
0.1398
109.17
0.5803
Falls
Weather Normalization Adiustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.comlmtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
Exhibit B
to 2021 RRM Resolution or Ordinance
Mid -Tex
2021 Benchmark for Pensions
and Retiree Benefits
Line
No.
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2020
Summary of Costs to Approve (1):
O&M Expense Factor (VVP_F-2.3, Ln 2)
Total Pension Account Plan
Total Post -Employment Benefit Plan
Total Supplemental Executive Benefit Plan
Total (Ln 13 + Ln 14 + Ln 15)
75.07% 75.07% 38.66% 11.00% 38.66%
$ 956,873 $ 1,602,484 $ 2,559,357
$ 1,609,582 $ 1,941,691 3,551,272
$ 32,322 32,322
$ 956,873 $ 1,609,582 $ 1,602,484 $ 32,322 $ 1,941,691 $ 6,142,952
Notes:
1, Studies not applicable to Mid -Tex or Shared Services are omitted.
2. Mid -Tex is proposing that the Fiscal Year 2021 Willis Towers Watson actuarial amounts shown on WP F-2.3 and WP_F-2.3.1, be approved by the RRM Cities as the
benchmark amounts to be used to calculate the regulatory asset or liability for future periods. The benchmark amount approved by the RRM Cities for future periods
includes only the expense amount. The amount attributable to capital is recorded to utility plant through the overhead process as described in the CAM.
3. SSU amounts exclude cost centers which do not allocate to Mid -Tex for rate making purposes.
Pension
Employment
Pension
Executive Benefit
Employment
Adjustment
Description
Account Plan
Benefit Plan
Account Plan
Plan _
Benefit Plan
Total
(a)
(b)
(c)
(d)
Proposed Benefits Benchmark - Fiscal Year 2021 Willis Towers Watson
Report as adjusted (1) (2) (3)
$ 2,917,949
$ 4,908,358
$ 5,447,063
$ 293,818
$ 6,600,073
Allocation to Mid -Tex
43.68%
43.68%
76.11%
100.00%
76.11%
Proposed Benefits Benchmark Costs Allocated to Mid -Tex (Ln 1 x Ln 2)
$ 1,274,655
$ 2,144,130
$ 4,145,546
$ 293,818
$ 5,023,057
O&M and Capital Allocation Factor
100.00%
100.00%
100.00%
100.00%
100.00%
Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4) (3)
$ 1,274,655
$ 2,144,130
$ 4,145,546
$ 293,818
$ 5,023,057
$ 12,881,205
Summary of Costs to Approve (1):
O&M Expense Factor (VVP_F-2.3, Ln 2)
Total Pension Account Plan
Total Post -Employment Benefit Plan
Total Supplemental Executive Benefit Plan
Total (Ln 13 + Ln 14 + Ln 15)
75.07% 75.07% 38.66% 11.00% 38.66%
$ 956,873 $ 1,602,484 $ 2,559,357
$ 1,609,582 $ 1,941,691 3,551,272
$ 32,322 32,322
$ 956,873 $ 1,609,582 $ 1,602,484 $ 32,322 $ 1,941,691 $ 6,142,952
Notes:
1, Studies not applicable to Mid -Tex or Shared Services are omitted.
2. Mid -Tex is proposing that the Fiscal Year 2021 Willis Towers Watson actuarial amounts shown on WP F-2.3 and WP_F-2.3.1, be approved by the RRM Cities as the
benchmark amounts to be used to calculate the regulatory asset or liability for future periods. The benchmark amount approved by the RRM Cities for future periods
includes only the expense amount. The amount attributable to capital is recorded to utility plant through the overhead process as described in the CAM.
3. SSU amounts exclude cost centers which do not allocate to Mid -Tex for rate making purposes.
Exhibit C
to 2021 RRM Resolution or Ordinance
Mid -Tex 2021 Schedule for
Amortization for Regulatory Liability
ATMOS ENERGY CORP., MID-TEX DIVISION
RATE BASE ADJUSTMENTS
TEST YEAR ENDING DECEMBER 31, 2020
AMORTIZATION OF REGULATORY LIABILITY
Total
Total
Beginning
Protected &
Protected &
Line
Year Ended
Beginning
Protected
Ending Protected
Unprotected
Unprotected Ending
Unprotected
Unprotected
Unprotected
No.
Dec. 31
Protected Balance
Amortization
Balance
Balance
Amortization
Balance
Amortization
Balance
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
1
2G17 (3)
$ - $
-
$ (51,477,654) $
-
$ - $
343,746,535
$ - $
292,268,881
2
2018
(51,477,654)
494,977
(50,982,677)
343,746,535
(3,513,866)
340,232,667
(3,018891)
289,249,991
3
2019
(50,982,677)
1,979,910
(49,002,767)
340,232,667
(14,057,872)
326,174,795
(12,077,963)
277,172,028
4
2020
(49,002,767)
1,979,910
(47,022,857)
326,174,795
(13,988,906)
312,185,886
(12,008,999)
265,16029
5
2021
(47,022,857)
3,454,842
(43,558,015)
312,1 B5,886
(26,390,127)
285,795,760
(22,925,284)
242,237,745
6
2022
(43,558,015)
1,979,910
(41,578,105)
285,795.760
(60,167,528)
225,628,231
(58,187,619)
184,050,126
7
2023
(41,578,105)
1,979,910
(39,598,195)
225,628,231
(60,167,528)
165,460,703
(58,187,519)
125,862,508
8
2024
(39 598,195)
1,979,910
(37,618,286)
165,460,703
(60,167,528)
105,293,175
(58,187,619)
67,674,889
9
2025
(37,618,266)
1,979,910
(35,638,376)
105,293,175
(60,167,528)
45,425,846
(58,187,619)
9,487,270
10
2026
(35,638,376)
1,979,910
(33,656,466)
45,125546
(45,125,546)
(0)
(43,145,737)
(33,658,465)
11
2027
(33,658,466)
1,979,910
(31,678,556)
(0)
0
1979,910
(31,678,555)
12
2028
(31,678,556)
1,979,910
(29,698,647)
-
-
1,979,910
(29,698,647)
13
2029
(29,698,647)
1,979,910
(27,718,737)
-
-
1,979,9111
(27,718,737)
14
2030
(27,748,737)
1,979,910
(25,738,827)
-
-
1,979,910
(25,738,627)
15
2031
(25,738,827)
1,979,910
(23,758,917)
-
-
1,979,910
(23758,917)
16
2032
(23,768,917)
1,979,910
(21,779,007)
-
-
1,979,910
(21,779,007)
17
2033
(21,779,007)
1,979,910
(19,799,098)
-
-
1,979,910
(19,799,098)
18
2034
(19,799,098)
1,979,910
(17,819,188)
-
-
1,979,910
(17,818,188)
19
2035
(17,819,188)
1,979,910
(15,839,278)
-
-
1,979,910
(15,639,278)
20
2036
(15,839,278)
1,979,910
(13,859,368)
-
-
L979,910
(13,659,368)
21
2037
(13,859,368)
1,979,910
(11,879,459)
-
-
1,979,910
(11,879,459)
22
2038
(11,879,459)
1,979,910
(9,899,549)
-
-
1,979,910
(9,899,549)
23
2039
(9,899,549)
1,979,910
(7,919,639)
-
-
1,979,910
(7,919,639)
24
204D
(7,919,639)
1,979,910
(5,939,729)
-
-
1,979,910
(5,939,729)
25
2041
(5,939,729)
1,979,910
(3,959,820)
-
-
1,979,910
(3,959,820)
26
2042
(3959,820)
1,979,910
(1,979,910)
-
-
1,979,910
(1,979,910)
27
2043
(1,979,910)
1,979,910
0
-
-
1,979,910
0
28
29
Revenue Related
Tax Factor
See VVP F-5.1
6.79%
30
Revenue Related
Taxes on Annual Amortization
Amortization' Tax Factor
$ 3,949,355
31
Amortization Including Revenue Related Taxes
Amortization + Taxes
$ 62,136,973
32
33
Notes:
34
1. The annual amortization of the protected balance is a 26 year recovery period basad
on the Reverse South Georgia Method. The annual
amortization
of the unprotected balance is 5 years.
35
2. The Regulatory Liability is recorded to FERC
Accounts 253 and 242, Sub Account 27909.
36
3. This is the final
Mid -Tex liability balance
riling the Fiscal[ Year
2618 tax return,