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
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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.