Laserfiche WebLink
ATMOS ENERGY CORPORATION <br />MID-TEX DIVISION <br />RATE SCHEDULE: RRM — Rate Review Mechanism <br />APPLICABLE TO: ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT ATO <br />THIS RATE SCHEDULE <br />. . . . ........................... . .... ... . . . . . ................ . . . . .. . ............ . . ...... <br />EFFECTIVE DATE: Billls Rendered on, and after 04/01/2018 [ PAGE: 2 <br />consistent with the rate making treatments approved in the Final Order. <br />Incentive compensation (Management Incentive Plan, Variable Pay Plan and <br />Long Term Incentive Plan) related to Atmos' Shared Services Unit will be <br />applied consistent with treatment approved in GUD 10580, Additionally, O&M <br />adjustments will be incorporated and applied as modified by a final order, not <br />subject to appeal, issued by the Railroad Commission of Texas in subsequent <br />rate cases involving the Atmos, Mid -Tex or West Texas divisions. Known and <br />measurable adjustments shall be limited to those changes that have occurred <br />prior to the Filing Date. OM may be adjusted for atypical and non-recurring <br />items. Shared' Services, allocation factors shall be recalculated each year <br />based on the latest component factors used during the Test Period, but the <br />methodology used will be that approved in the Final Order in GUD 10580. <br />DEP = depreciation expense calculated at depreciation rates approved by the Final <br />Order. Additionally, if depreciation rates are approved in a subsequent final <br />order, not subject to appeal), issued by the Railroad Commission of Texas, for <br />the Mid -Tex division those rates would be appllicable for subsequent RRM <br />filings. <br />i <br />RI return on prudently incurred' investment calculated as the Company's pretax <br />return multiplied by rate base at Test Period end. Rate base is prepared <br />consistent with the rate making treatments approved in, the Final Order, and <br />as in, GUD 10580 as specifically related to capitalized incentive compensation <br />(Management Incentive Plan, Variable Pay Plan and Long Term Incentive <br />Plan) for Atmos' Shared Services Unit. However, no post Test Period <br />adjustments will be permitted. Additionally, adjustments will be incorporated <br />and applied as modified by a final order, not subject to appeal, issued by the <br />Railroad Commission of Texas in subsequent rate cases involving, the Atmos <br />Mid' -Tex or West Texas divisions. Pretax return is the Company's weighted <br />average cost of capital before income taxes. The Company's weighted <br />average cost of capital is calculated using the methodology from the Final <br />Order including the Company"s actual capital structure and long term cost of <br />debt as of the Test Period end (adjusted for any known, and measurable <br />changes that have occurred prior to the filing date) and the return on equity of <br />9.8%. However, in no event will the percentage of equity exceed 58%. <br />Regulatory adjustments due to prior, regulatory rate base adjustment <br />disallowances will be maintained'. Cash workiing capital will be calculated <br />using the lead/lag days approved in the Final Order. 'With respect to pension <br />and other postemployment benefits, the Company will record a regulatory <br />asset or liability for these costs until the amounts are included in, the next <br />annual rate adjustment implementedunder this tariff. Each year, the <br />Company's filing under this, Rider RRM will clearly state the level of pension <br />