Laserfiche WebLink
EXHIBIT A <br />TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., <br />MID -TEX DIVISION <br />RIDER: <br />Rider RRM — Rate Review Mechanism <br />APPLICABLE TO: <br />Entire Mid -Tex Division <br />REVISION <br />DATE: <br />EFFECTIVE DATE: <br />PAGE: 2 of 5 <br />February 1, 2008 <br />Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the <br />Company's Audited Financial Data, as adjusted, and provided in the same format as Atmos' rate filing with <br />municipalities on September 20, 2007, will include the following: <br />a) Company's actual gross plant in service, accumulated depreciation, accumulated deferred income <br />taxes, inventory, working capital, and other rate base components. The ratemaking treatments, <br />principles, findings and adjustments included in the Final Order will apply. Regulatory <br />adjustments due to prior regulatory rate base adjustment disallowances will be maintained where <br />applicable. Cash working capital will be calculated using the lead/lag days approved in the Final <br />Order. <br />b) The Company's depreciation expense, operating and maintenance expense, income taxes, and <br />taxes other than income taxes. Depreciation rates will be those approved in the Final Order, or the <br />rate most recently approved. All calculation methodologies will be those approved in the Final <br />Order, or in the most recent order addressing the methodology. In addition, the Company shall <br />exclude from operating and maintenance expense the type of expenses related to employee <br />expense accounts disallowed in the GUD No. 9670 Final Order. <br />c) Return on Equity (ROE) shall be maintained at 9.6 %. <br />d) Cost of debt will reflect actual cost. Capital structure will be the actual Evaluation Period ending <br />ratio of long -term debt and equity, with percentage equity not to exceed the percentage established <br />in the Final Order in G.U.D. No. 9670 (48.1% equity). <br />e) All applicable accounting and pro forma adjustments along with all supporting workpapers. <br />f) Pro -forma adjustments to update and annualize costs and revenue billing determinants for the Rate <br />Effective Period. <br />g) Pro -forma or other adjustments required to properly account for atypical, unusual, or nonrecurring <br />events. <br />h) Shared Services allocation factors may be recalculated each year based on the latest component <br />factors, but the methodology used will be that approved in the Final Order. <br />Calculation of Rate Adjustment <br />a) The Company shall provide additional schedules indicating the following revenue <br />deficiency /sufficiency calculations using the methodology accepted in the Final Order. These <br />schedules shall identify the rate adjustments necessary for both a true -up of revenue for the <br />Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result <br />of these rate adjustments shall be reflected in the proposed new rates to be established for the Rate <br />Effective Period. In calculating the required rate adjustments, such adjustments will be made pro - <br />ratably to the customer charge and usage charge based upon actual revenue generated, as adjusted <br />under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided, <br />24 <br />