Loading...
10 - 2022 Atmos Rate Review Mechanism (RPM) SettlementItem No. 10 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: 2022 ATMOS RATE REVIEW MECHANISM (RRM) SETTLEMENT DATE: August 8, 2022 BACKGROUND: On April 1, 2022, Atmos made a filing requesting 141.3 million dollars in additional revenues from its customers system wide. The rate increase request was reviewed by consultants for the Atmos Cities Steering Committee (ACSC) of which Paris is a member. STATUS OF ISSUE: Negotiations between Atmos and ACSC resulted in just over a 26.3 million dollar reduction in requested revenues by Atmos ($115 million vs. $141.3 million). The effective date of the rate increase will be October 1, 2022. The ordinance before the Council reflects the reduced proposed rates. The typical residential customer will experience a $4.60 per month increase in their bill (6.7%). The typical commercial customer will see a monthly increase of $14.34 or (4.3%). BUDGET: This will have minimal impact on the City budget. RECOMMENDATION: Motion to approve an ordinance and related attachments granting Atmos an increase in revenues as recommended by the Atmos Cities Steering Committee. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY'S 2022 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 RESOLUTION 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 RESOLUTION TO THE COMPANY AND THE ACSC'S LEGAL COUNSEL. WHEREAS, the City of Paris, Texas ("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 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 ordinance in 2018; and WHEREAS, on about April 1, 2022, Atmos Mid -Tex filed its 2022 RRM rate request with ACSC Cities based on a test year ending December 31,2021; and WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2022 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 $115 million on a system -wide basis with an Effective Date of October 1, 2022; 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; FITJ WHEREAS, the attached tariffs (Attachment 1) 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 (Attachment 2); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: 2 Section 1. That the findings set forth in this Resolution are hereby in all things approved. the City Council finds that the settled amount of an increase in revenues of 115 million on a the rates, operations, and services offered by Atmos id -Tex within the municipal limits arising from Atmos i-Tex's 2022 RRM filing, is in the public interest, and is consistent it the Cit/,s authority under Section 103.001 of the Texas Utilities Code. Section 3. That despite finding Atmos id-Tex's plant -in-service to be reasonable, 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 Attachment 1, are just and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional $115 on a system -wide basis, over the amount allowed under currently approved rates. Such tariffs are hereby adopted. 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 Attachment 2, attached hereto and incorporated herein. Section 6. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company's 2022 RRM filing. Section 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 8. That 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 9. That if any one or more sections or clauses of this Resolution is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Resolution, and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. Section 10. That consistent with the City Ordinance that established the RRM process, this Resolution shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2022. Section 11. That a copy of this Resolution 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 LBJ 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. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, BY A VOTE OF TO .ON THIS THE 8TH DAY OF AUGUST„ 2022. Paula Portugal, Mayor 4 ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney July 28, 2022 MODEL STAFF REPORT FOR RESOLUTION OR ORDINANCE BACKGROUND AND SUMMARY 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, 2022, 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, 2021, entitled it to additional system -wide revenues of $141.3 million. Application of the standards set forth in ACSC's RRM Tariff reduces the Company's request to $115 million, $83.26 million of which would be applicable to ACSC members. ACSC's consultants concluded that the system -wide deficiency under the RRM regime should be $95.8 million instead of the claimed $141.3 million. The Executive Committee recommends a settlement at $115 million. The Effective Date for new rates is October 1, 2022. ACSC members should take action approving the Resolution/Ordinance before September 30, 2022. 2557/35/8444378 RATE TARIFFS Atmos generated rate tariffs attached to the Resolution/Ordinance will generate $115 million in additional revenues. Atmos also prepared a Proof of Revenues supporting the settlement figures. ACSC consultants have agreed that Atmos' Proof of Revenues is accurate. BILL IMPACT The impact of the settlement on average residential rates is an increase of $4.60 on a monthly basis, or 6.7 percent. The increase for average commercial usage will be $14.34 or 4.3 percent. Atmos provided bill impact comparisons containing this figures. SUMMARY OF ACSC'S OBJECTION TO THE UTILITIES CODE SECTION 104.301 GRIP PROCESS 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. RRM SAVINGS OVER GRIP 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 2557/35/8444378 2 new rates become effective on October 1, 2022, ACSC residents will maintain an economic monthly advantage over GRIP and DARR rates. Comparison to Other Mid -Tex Rates (Residential) AveraLe Bill Comoared to RRM Cities RRM Cities: $73.22 - DARR: $71.96 ($1.26) ATM Cities: $78.72 $5.50 Environs: $78.53 $5.31 Note: DARR rate is as -filed 1/22/22. Also note that DARR uses a test year ending in September rather than December. EXPLANATION OF "BE IT RESOLVED" PARAGRAPHS: 1. This section approves all findings in the Resolution/Ordinance. 2. This section adopts the RRM rate tariffs and finds the adoption of the new rates to be just, reasonable, and in the public interest. 3. This section makes it clear that Cities may challenge future costs associated with gas leaks like the explosion in North Dallas or the evacuation in Georgetown. 4. This section finds that existing rates are unreasonable. Such finding is a necessary predicate to establishment of new rates. The new tariffs will permit Atmos Mid -Tex to recover an additional $115 million from ACSC Cities. 5. This section approves an exhibit that establishes a benchmark for pensions and retiree medical benefits to be used in future rate cases or RRM filings. 6. This section requires the Company to reimburse the City for expenses associated with review of the RRM filing, settlement discussions, and adoption of the Resolution/Ordinance approving new rate tariffs. 7. This section repeals any resolution or ordinance that is inconsistent with the Resolution/Ordinance. 2557/35/8444378 3 8. This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 9. This section is a savings clause, which provides that if any section is later found to be unconstitutional or invalid, that finding shall not affect, impair, or invalidate the remaining provisions of this Resolution/Ordinance. This section further directs that the remaining provisions of the Resolution/Ordinance are to be interpreted as if the offending section or clause never existed. 10. This section provides for an effective date upon passage. 11. This section directs that a copy of the signed Resolution/Ordinance be sent to a representative of the Company and legal counsel for ACSC. CONCLUSION The Legislature's GRIP process allowed gas utilities to receive annual rate increases associated with capital investments. The RRM process has proven to result in a more efficient and less costly (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos Mid-Tex's claim that its historic cost of service should entitle it to recover $141.3 million in additional system -wide revenues, the RRM settlement at $115 million for ACSC Cities reflects substantial savings to ACSC Cities. Settlement at $115 million is fair and reasonable. The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all ACSC members to pass the Resolution/Ordinance before September 30, 2022. New rates become effective October 1, 2022. 2557/35/8444378 4 J O K a a a N Z W OFN fA U N D 0;; LL LL W W U mw U U ? tm tmWZ w LL, W UJ FF Q p F Z Q Z co Z w a m O N r LL CL m �a allo 0ootoLO It C oc co v_ m o Cl) v r� N E O M O N r Oct N f9 fA fJ3' O N E C U %I'... C d N_ o M o co o cfi i!1 N W� 0 Nt M V G1 w O n 0 M N C M N N O v O cp O N N da Lp U � U ui fA fA 0 O 0 O oO LO LO R N a O O O a0 O N M O M O M O ID O O M M O" Cl) r M r m r T N N O O_ O 61> fA f9 6-1 f.% C co 00 N W o 0 O'''.... N 9 U co o ao w O ao o actco O r r r- co o r 00 ri I' o vry m m rn m rn nj a. LLI m N N L CL �a fR E9 69 61). fR c > co 0 0 o coO coO N nnv_o�r M g rt aD OR 0 0 M aU CL O N V w r O C M O c'di fin O) I— O O O a r ?� = a 0 c E 9 O Vfl fA fA 69 ff! U co W N Cl 0 0 0 0 E-0 N N M I- M O O O M O- , co a0 0 h 0 I- L t N 0 N U N m n — co d= � o. r o d o m L @ F d a 61.4 fA ER fA 6%N 'v'd L w? w .c CO U N � ca n o 0 _ N c d y N J w N X N O) a E N 02 Js} 0 o XJ d O L m F f0 to F X N Vl O p a m V — O > 2 l6 g N gg O 0 > N O N Nm O N Z a Q y a N O L '2 U O Q m r N Q O N J LL0. N `O}QQ N 42 N N UoU ri d m X N d N d Hii��° c U Y r N in . p dDncpp LL m Cl)E LL C� 16 U 3 0 -o E 4 CL N 4)7 O U O U cli U U d Q LL U J c N N a °c c %gym COO 0 x� + 7 Ew_I O �'ma m 0 O F N QN N 5 (O(Jt >`� O. O.O.p N N e d �N O LL U O C C Q OLNJ 3 f0 CL a O NUN U C 2 w a) C N O O O U) CLM_ W O N C N N 0 7 C N O V O N 15 p ccpp 0 0 0 E LL LL N v i! T a j@ ocn �Q O O as 0 E > g atj co v O O O O O w?inc 0 U) O E L CL 00. cn FFFF- Z r N �aFM r N m v O 0 h a0 O�R 04 N m O N r LL CL m �a oo 21 w < R1P.'f p.... ay ¢i& < (YA 'cxy eri -q -R a eC3 aft N py fQ . """ ..... (6 o':. P.k" Pl.. """ mf: CD r d p0 .... i': C 61.. iA.. """' f]P' pp ... »w tr. ... ' 4 C,1 Q.� .K'k I.A.. O cl N � X. ` o 0 15 1 C) U R.k AA.. °� ' W. P.IP..aou E .. .= IIA.. ffi r " � �, E:.p 4.3 9 (A_ Q:k k' � � � � U9.. (7 E � e"A E E :• C:} y„"? :3 I.A.. ("d � 1 0 � 4:> e., b" � 4dL (3 E 0 0 o aW r.... v 6.... PO qA 0.8 (U � �... r... C:3 u... 4.". ¢Ct C O A L " " .. ( L 1-" eeA p � r". &�' I•- aPk o qY AA} O T.5 10 L � ::& (� (3 C7 � o 1;A 73 'CF M U U RA° ® :A r N M "s$' tfP (D U^- r.qA ($1 r r r r r r �••• w••" 0,(:) r N M't 4(} (D r•" r N N N N N N N r- 0) O ,- Nm v U) N N N M M M M M M 'R'" z 6% 69, LOr- (DMrrN� Or - (Dr MMI •a An O (D r• W (n (n(nW V N �M An O Un r- O MCO Mrr-C)W O> O y Nrrr(O h y d (D� TOt fq N MNM O O O O CL a (b (O O M m',N C)CAO It�rMm C OR NCR r --:(O ONAD to r V a0 UG M U( r- c6 M 46^t N (D (D 4a.Y tl' 4iT rM N L L Z W V O F N O N N W II II 01 11 V III H III 11 01 III II 11 II III III D y M m H m vl- I LO co rt 00 P.•,. IInO 0 Z N M M O M M M O M N O CIO �= O W as(a0 w eia aaN—, o (as xrz (r esa mu9 (ra V)ara 64 �0z J W ' J Z W I.A.. Ll- U.. IIA_ LL0I.A.. co W I I I� W M O 0>- 000 K3g}C3 C)C3C3 cACDLi O � 0g W UJF F Q Q 00 co co oa 00 r r r r r- r. r- 06 6 C15 M5' ef2 1.6 1.6 c4M v.fi 6Ci L6 °Ms2' ° M 21 w < R1P.'f p.... ay ¢i& < (YA 'cxy eri a eC3 aft QP. a.. py fQ . """ ..... (6 o':. P.k" Pl.. """ mf: ((( ..... of.A. ftl.. — Y%: p0 .... i': C 61.. iA.. """' f]P' pp ... »w tr. ... ' 4 C,1 Q.� .K'k I.A.. O _ .., fit. PT t,7 C,i a., R5 .rx IIA.. � X. ` o 0 15 1 C) U R.k AA.. °� ' W. P.IP..aou E .. .= IIA.. ffi r " � �, E:.p 4.3 9 (A_ Q:k k' � � � � U9.. (7 E � e"A E E :• C:} y„"? :3 I.A.. ("d � 1 0 � 4:> e., b" � 4dL (3 E 0 0 o aW r.... v 6.... PO qA 0.8 (U � �... r... C:3 u... 4.". ¢Ct C O " " .. ( L 1-" eeA p � r". &�' I•- aPk o qY AA} O T.5 . -} (1 O 'R'8 a'.i .23 � ::& (� (3 C7 � o 1;A 73 'CF M � RA° ® :A r N M "s$' tfP (D U^- r.qA ($1 r r r r r r �••• w••" 0,(:) r N M't 4(} (D r•" r N N N N N N N r- 0) O ,- Nm v U) N N N M M M M M M 'R'" z z p ti 0 p•••' KW p 0 Ila xpx IN- 7. tlt� z IIA.V::::. pA° Z pA pll8 UA 0 I ppapp 1 N M O ') N a ar � m a W 4~k ..''...'Vr N oc) D fn a 00 43 c6 C6 r'— 10 W W M ' rm CD w- 0 N W m N R '.CSS Ity' i"- In 00 R°'A 3' ESP 6 , 0 C"') K'A O — 4_I' Rb) V'• In, It wA f) v BP) r•• ',4 9 LLC) 'I W $ 0 Id6'8 m to In CD1 r•^ It 0 4G3 M m N'- m 0 In CO 10W M cv N ar Ln W w 00 q ',r - ••p,3 W',. op Cp '�@' ^P,y "$ CeA T RPP o w 0 0 CT C) . 'et N M N 0 0 ^r C) 'r M Cl)''.... Cl) 0 N r- Fs) " N LP3 0 c®r P•• C") R+} N M 0 v- a^ '+y' N C-1 '+- 0 r- r- COY Ill I3? W �I � ffs 6,sb ',,VF- &�:$ '',Erb t 1 N M O ') N a ar � m a in 0 0 0 u 2 ..''...'Vr N (0 LID C' C7 m 00 43 PPF r'— 10 W W M ' rm CD w- 0 N W m N R '.CSS Ity' i"- In 00 R°'A 3' ESP 6 , 0 C"') K'A O — 4_I' Rb) V'• In, It wA f) v BP) r•• ',4 9 LLC) 'I W $ R T ' 4.".S 0 ors 4x8 Obi W N Ir- i� � Ci 10 OD Cl CSF M1 4'lN V3 IN rl II R II el. IN ilei} 10 PI 01 II ID ID tT IN IN II II Fss IN 693, II 61 GI II IN C3 0 0 R3 � CD ACD a, p: RC) 1163 r C3 oC1 KrF A"^ co W Cl)m r'^• OD 11 49y K38 'aV' W 4%8 4C3 Ih- axF '"•$ "uX CbF .x... 4.4'a 'c8' 'iP' w Iq �3 4Lb U^- 'z9' W C3 -' UC R*T e'r' uCF " RaA C3 LLCD " eg' Cm% C3 IQ C3 CF C. C" P CS CS • C) 0 T 0 c; C3 C3 'r P3 CP F,`f C3 � 0 64 C9 EAT aAT to asi EST ea W. eq V& V" eFII vcb : m C4 xxxxx x xxxxx x xxxx x xxxx x N N Ci C2 CN &'t1 pffi' PdJ P.pS ramM ME M M :F d'�r�... Gm M m �'"r"�•.•". �r�T.. n*-.•.•. 26 c'+! E1A 4y.'J �"A CIS 27.22 "f mm IM P.%3 "M'.'.. M M. M N ass eaT ass ass 0 00 00 40 Cel or) co W 000 ab 0 C3 ads 4V � I Ate- CS P CSM C'd I rll CA'V C3 CN GAP EU Ct3 1 Ol pS 4) os ° QF w 0 �... PY3 Cbk rr5i .... I""' 00 nCTP JF p.._ �. K3Fd .... ... p.... �F r. ....91 w .. aAi e¢I c45 e11 P.S:S M ' Ep a � C C r� oz a m l 3 t::' t' .1- ') . � t' t•'. � � 'w ... a U n... c RSA ''.....,,",, ..0 Cb PD Q7 C3 Ct C7 � � ';., " &' C. ¢'t d+6 ...... � Pl:. p9f.. K.A. 63. P,�J o23 �• .� &A ,,,_, IX:A. 6:A. R:A. ..CC.. ;0 ,� o� 44Y f„ i 0 2 EiF A:: ..4:4 NA..' o-.. , f..i J �.. Ir P f„} f.� 46 ..A:t I.A.. -w _5 eTp dU g, j 3 E E E .4'h I.A. +,.e.: C.F C""} ..t:k I.A.. 6 •. m W hY ... .. ... RdN CPD fBF C2 ..:a D � r... n.. I.A.. C3 W r.... p._ ... O .. LA.. 0 rft CO N-- - •5 ..7 � S � eDk en ..3 I.A.. W N.... a., W8 tlP qF ¢A8 0 P: � � odF ,CAS .� .� � .. .. 35 4T CD C3 .� �?' .2 0 1:1 . :':.w PJ K,D e3 =3 '¢7 ;C'k p.... ":S Cd a} CS � .E' .� ::x 43 CS ex � .� C5 " 0 0 0 f,„Y P,]K P.K.: It 0 f„7 0 f_i w Q� pAs � 0 0 f } 0 Y.R.". ttK': 0 0 0 0 YX: PA:. r$,F P. r^- aC) CPS C7 '+-" N CT 'z9' 4f7 CL9 r�• ors L%F C) 'a- CV A & e P A Cry IT "K$' •K7 '+i' It '"$ 'tiC v it 'c$� LO I,FA In C+3 eF I.C3 d•L3 r- W e9z 43 'r' RV Kr"A °d$ tC) CCs r•- co m 0 ;z in 418 I n In I n X$ 4CT CLT CC1 ✓.LY C$P 0 0 m m (0 0 P`- h•- N 0 'wY CCF r- r•- P"w rti 1 N M O ') N a ar � m a MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: R ® RESIDENTIAL SALES ICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISIONTARIFF EFFECTIVE ® Bills Renderedon or after 10/0112022 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. of-ServiceType chargescontract arrangements between service being . Monthly e" Customer's monthly bill will be calculatedadding the following ';, d Ccf charges tnounts due LJTder Charge Amount Customer Charge per Bill 21.55 per month Rider CEE Surcharge 0.05 per month' Total Customer Charge $ 21.60 per month Commodity Charge ® All Ccf $0.36223 per Ccf accordanceGas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculat in I upstream transportation costsC'9cuat Part (b), respectively, of Rider GCR.f Rider Weather Normalization Adjustment: Plus or Minus an a, weather +t,. calculated in accordance with Rider WNA. �.; mits FF. Rider FF is only applicable to customers inside her � -corporofa e ny a It! municipality. accordanceTax Adjustment: eflus an amount for tax calculated in i 1 a 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, 2022. 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/_...�v_ 01 /2022 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 $ 63.50 per month Rider CEE Surcharge ($ 0.01) per month' Total Customer Charge $ 63.49 per month Commodity Charge — All Ccf $ 0.14137 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, 2022. 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�.._�� ...�.._._. .._..�� W DATE: Bills Rendered on or after 10/01/2022..... ........ ......... _ .._. 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 $ 1,204.50 per month First 0 MMBtu to 1,500 MMBtu $ 0.4939 per MMBtu Next 3,500 MMBtu $ 0.3617 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0776 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 10/0112022 . ......................... - ..................... - — _-- =1 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 ATMOSTI® T LE: T -- TRANSPORTATION APPLICABLET TO: ALL CUSTOMERS IN THE MID-TEXMSI E THE RRM TARIFF EFFECTIVE T ills Rendered on or after 10/0112022 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 e desir -ed brA Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be service being furnished. 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 i Customer Charge per Meter $ 1,204.50 per month First 0 MMBtu to 1,500 MM13tu 0.4939 per MM13tu Next 3,500 MMI3tu $ 0.3617 per MMBtu All MMBtu over 5,000 MM13tu $ 0.0776 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 CiM 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 P/atts 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 ATMOS ENERGY CORPORATION RATE SCHEDULE: T — TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECT.... IVE DATE Bills Rendered on or after 10/01/2022 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: Bilis Rendered on or after 10101/2022 Provisions for Ad'ustment 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. Com utation 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: WNAi = WNAFi x q;j Where q;i 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 10101!2022 Base Use/Heat Use Factors Weather Normalization Adjustment QWNAI Report On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-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 Ccf/HDD Ccf Ccf/HDD Abilene 10.58 0.1422 88.85 0.6666 Austin 9.90 0.1372 233.56 0.7819 Dallas 14.17 0.1938 186.38 0.9394 Waco 10.07 0.1308 140.10 0.7170 Wichita 11.43 0.1398 131.57 0.5610 Falls Weather Normalization Adjustment QWNAI Report On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-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.