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Res 057-2015 5/19/2015Resolution No. R 57 -2015 A Resolution of the City Council of the City of Wichita Falls, Texas, approving a negotiated settlement between the Atmos Cities Steering Committee ( "ACSC ") and Atmos Energy Corp., Mid -Tex Division regarding the Company's 2014 and 2015 Rate Review Mechanism Filings; approving a Settlement Agreement with attached rate tariffs and proof of revenues; 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 settlement tariffs to be just and reasonable and in the public interest; 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 Wichita Falls, 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 and charges of Atmos; 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 initial RRM Tariff was in effect for four (4) years; and, WHEREAS, ACSC Cities and Atmos Mid -Tex entered into another settlement agreement and revised the RRM Tariff; and, WHEREAS, ACSC Cities and Atmos Mid -Tex compromised and reached agreements on the amount of the rate increases to be in effect for the RRM Tariff filings for 2012 and 2013; and, WHEREAS, ACSC Cities and Atmos Mid -Tex were unable to reach an agreement on the 2014 RRM Tariff filing, resulting in the ACSC Cities' rejection of the 2014 RRM filing; and, WHEREAS, Atmos Mid -Tex appealed the ACSC Cities' actions rejecting its 2014 RRM filing to the Railroad Commission of Texas ( "Commission "), pursuant to the provisions of the RRM Tariff, and, WHEREAS, Atmos Mid -Tex and ACSC litigated the appeal of the 2014 RRM filing at the Commission; and, WHEREAS, on February 27, 2015, Atmos Mid -Tex filed its 2015 RRM Tariff filing, requesting to increase natural gas base rates system -wide by $28,762 million; s WHEREAS, ACSC coordinated its review of Atmos Mid -Tex 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, Atmos Mid -Tex has agreed to withdraw its appeal of ACSC's rejection of its 2014 RRM Tariff rate increase; and, WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve the attached Settlement Agreement (Attachment A to this Resolution) as well as the tariffs attached thereto, resolving both the 2014 and the 2015 RRM Tariff filings, which together will increase the Company's revenues by $65.7 million over the amount allowed under City - approved rates set in 2013; and, WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated Settlement Agreement and are just, reasonable, and in the public interest; and, WHEREAS, the RRM Tariff should be renewed for a period of time commencing in 2016 and continuing until the RRM Tariff is suspended by ordinance of the City; 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 WICHITA FALLS, TEXAS, THAT: Section 1. The findings set forth in this Resolution are hereby in all things approved. Section 2. The City Council finds that the Settlement Agreement (Attachment A to this Resolution) 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 2014 and 2015 RRM filings, is in the public interest, and is consistent with the City's authority under Section 103.001 of the Texas Utilities Code. Section 3. The existing rates for natural gas service provided by Atmos Mid -Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment C, are just and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional $65.7 million in revenue over the amount allowed under currently approved rates, or $21 million over currently - billed rates, as shown in the Proof of Revenues attached hereto and incorporated herein as Attachment B; such tariffs are hereby adopted. Section 4. The ratemaking treatment for pensions and other post - employment benefits in Atmos' next RRM filing shall be as set forth on Attachment D, attached hereto and incorporated herein. Section 5. In an effort to streamline the regulatory review process, the Atmos Mid -Tex RRM Tariff is renewed for a period commencing with the Company's March 1, 2016 RRM filing for calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as the City adopts an ordinance suspending operation of the RRM Tariff. Section 6. Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company's RRM application. Section 7. To the extent any resolution previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 8. 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. 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 Ili MIN I I I I I I I I I Attachment A PETIT. Ft1F?�7_AGRE£�IE_�'T'BET'{�FEI� �T� ,t,;,s�,>-?.-G�-cc�IZP..nt�a -rE TIIZTSION -UND - kTAfOS CITIES ST £R V G CO'- 4LNHTTEE A'HEREAS, this agreement ("Settlement Agreeme t') is entered into by Atmos Energy Corps Mid -Tex Division and Atmos Cities Steering Committee (-ACSC) whose members include the Cities of Abilene. Addison, Allen Alvarado: Anvers, Anna, Arg3ie, Arlington, Aubrey, Bedford, Bellmead, Benbrool, Beverly Hills, Blossom, Blue Ridge, Bowie, Boydc Bridgeport, Brownnood. Buffalo, BurburneM Burleson. Caddo Mills. Canton, Carrollton, Cedar Hill. Celeste, Celina_ Centerville; Cisco, Clarknille, Cleburne, Clyde, College Station, Colley ;,ille, Colorado City Comanche, Commerce, Coolidge, Coppell. Copperas Cove, Corinth, Corral City, Crandall, Crowley, Dalworthington Gardens, Denison. Desoto, Duncam,Ue, Eastland, Edgecliff Village, Emory, Eauis, Euless, Everman, Fairview- F amaers Branch, Farmers Uc. Fate. Flower Mound, Forest Hill, Fort %Vord- Frisco, Frost Gaineslilke, Garland, Garrett, Grand Prairie, Grapevine, Gunter. Haltom City Harker Heights, Haskell, Haslet, He%xitt, Highland Park,, Highland -Village; Honey Grog Hurst Hutto, Iaeva Pail-, irting, Justin, Kauf nn" Keene, Keller, Kemp, Kennedaie, Kerens, Ke€rUL. Killeen, Thum. Late Worth, Lakeside, Lancaster, Lez6sviile, Lincoln Park;, Little Elm Loren&, Madisomvitle, MakakofE Mansfield, McKinney, Melissa, Mesquite, Midlothian, ?r4urphy, ' ewaik, Nocona, North Richland Hills; Northlalze, 021-leaf Ovilha Palestine, Pantego, Paris, Parker, Pecan Hill, Petrolia, Plano, Ponder, Pottsboro, Prosper, Quitman, Red Oak, Reno (Parker County), Richardson, Richland, Richland Hills, Roanoke, Robinson, Ro€kwalk, Roscoe, Rowkett, Royse City; Sachse, Saginaw, Sansom Park, Seagoville, Sherman. Snyder_ Southlale, Springtown, Stamford. Stephenville, Sulphur Springs; Sweetwater, Temple, Terrell, The Colony, Trophy- Club, T }Vier, University Paft. T' emus, Vernon, Waco, Watauga, Waxahachie, West[aLe, White Settlement U litesboro, Wicl to Fails. Woodway andlaFliie_ VIIER AS, on February, 28, 2014, Atmos filed with the ACSC Cities an application, hereinafter referred to as the 2014 RRM filing, to adjust rates pumuant to Rider RR3vf - Rate Review Mecbanism ,.N-hch -were subsequently consolidated into GLD Rio. 10359 at the Railroad Commission of Texas: and Wk'EP.Et1,S, on February 27, 2015, Atmos filed with the ACSC Cities an application, htreinafter referred to as the 2015 RRII faking, to adjust rates pursuant to Rider RRNI - Rate Review h'lechanism; and Ri'HFREAS, the Settlement Agreement resolves all issues between Atmos and ACSC C'the Signatories regarding the 2014 RRNI filing which is currenfly pending before the Commission, and the 2015 RRNI filing, which is currently pending before the ACSC Cities, in a manner that the Signatories believe is consistent with the public interest and the Signatories represent diverse interests, and WHEREAS, the Signatories believe that the resolution of the issues raised in the 2014 RFUM filing and the 2015 RRM filing can best be accomplished by each ACSC City approving this Settlement Agreement and the rates, terms and conditions reflected in the tariffs attached to this Settlers Agreement as Esbzbit A; DOLT, THEREFORE, in consideration of the mutual agreements and covenants established herein, the Signatories, through their undersigned representatives, agree to the Attachment A foRowing Settlement Terms as a means of fully resol -mg- iii issues between Atmos and the ACSC Cities involving the 2014 RRM filing and 2415 RIM filing SeW mernt Term Upon the execution of this Settlement Agreement the ACSC Cities -ill approve an ordinance or resolution to approve the Settlement Agreement and implement the rates: terms and conditions reflected in the tariffs attached to the Settlement Agreement as Exhibit A. (Attachment A to the Ordinance =ft ng the Agreement). Said tariffs should allow Atmos to recover annually an additional $55.7 million in revenue over the mount allowed under cturenfly approved rates by implementation of rates shown in the proof of revenues attached as Exhibit B_ (Attachment B to the Ordinance ratifying this 4gueemeut )_ The uniform. implementation of gas rates; terms and conditions established by the Settlement Agreement shall be effective for bills rendered on or after dune 1.2015. Consistent with the City's authority imder Section 103.001 of the Texas Utilities Code, the Settlement Agreement represents a comprehensive settlement of gas utility rate issues affecting the rates, operations and senices offered by Atmos within the municipal limits of the ACSC Cities arising from Atmos' 2014 RIEM filing and 2015 RRM filing. No refunds of charges billed to customers by Atmos under the RRM in past periods shall be awed or owing. In an effort to streamline the regulatory review process, . Atmos and the ACSC Cities have agreed to renew the Rate Review Mechanism (`Tdder RRM-) for a period commencing with the Company -s March 17 2015 filing under this mechanism for the calendar year 2015, effective June 1, 2015, and continuing thereafter until such time as either the ACSC Cities issue an ordinance stating a desire to discontinue the operation of the tariff or Atmos files a Statement of Iutent. Atmos and the ACSC Cities further agree that the RRM tariff shall rem_= in effect until such time as new, final rates are established for Atmos. Upon approval of this Settlement Agreement by the ACSC Cities. Atmos shall file an updated.RRMI Tariff with each city reflecting the provisions of this a reement Atmos and the ACSC Cities amee that rate base as of December 31, 2014 in the amount of $1795579487255 is just and reasonable and shall be recovered in rates. Atmos and the ACSC Cities agree that a pension and other postemplojment benefits balance as ofDecember 31, 2014 in the amount of $18,284,949 is just and reasonable and shall be used as the beginning balance for purposes of determining- pension and other postemplo}ment benefits to be recovered in the neat RRM, filing (Attachment D to the Ordinance ratifying the Agreement). With regard to the treatment of Atmos' Rule 8.209 regulatory asset under the RRNi Atmos and the ACSC Cities agree to the folloN%ing with respect to any }tending and future RRM fillings: the capital investment in the Rule 8.209 regulatory asset in the 2014 RKNI filing and 2415 RRM fining is reasonable and consistent with the requirements of Rule 8.209, Attachment A b. the classification of projects included in the Rule 2-209 regulatory asset in the 2014 RPM filing and 2015 RRM filing is reasonable and consistent with the requirements of Rule 8-209 and shall serve as a basis for classification of projects in future RRM filing, c. the treatment of blanket replacement projects, system upgrades, relocations, and transmission line replacements in the Pule 8.209 regulatory asset in the 2014 RRNS filing and 2015 RRM filing is reasonable and consistent -L -ith the requirements of Mule 8.209 and shall be included in future RRNi filing. I the incurred expenses included in the Rule 8-209 regulatory asset in the 2014 RRM and the 2015 RP-M are reasonable and consistent uith the requirements of Rule 8.209 and shall be included in future RRM filings,. e. interest on the Rule 8.209 regulatory asset account shall be calculated using the pre -tax cost of capital most recently approved by the Commission. The use of the pre -tax cost of capital is consistent with Pule 9-209. A return on Rule 8.209 capital investment is only earned once the investment is included in rate base_ No change in the Company's calculation of the interest component in its Rule 8-20 regulatory asset accounts is warrarrted through the period ended .May 31, 2015. Beginning ngg June 1, 2015, interest expense shall be calculated monthly using simple interest (i.e. 11.44-Na divided by 12, or approximately 496% per month) applied to the total value of the Rule 8 269 asset investment (exclusive of interest) until such time the Rule $ 209 regulatory asset is approved for inclusion in the Company's rate base. f. WnIe Atmos and the ACSC Cities agree to apply the treatments and methodologies set forth in this paragraph, subsections (a) — (e) in all firture RRM filings, the regulatory authority retains its right to disallow any capital hwestment that is not shoum to be prudently incurred, and any expense not shoum to be reasonable andnecessary, in future RRVS filings - g. Atmos and the ACSC Cities ad;nowledge that their agreement regarding the treatment and methodologies applicable to Rule 8.209 capital im- estments under the MI tariff shall not prejudice the rig-h# of either party to argue for different treatments or methodologies in a frrt€rre statement of intent proceeding, 6- Revenues approved pursuant to Paragraph 1 of the Settlement Agreement include reimbursement of rate case expenses owed to the ACSC Cities in connection with the 2014 RR?d filing - 7. The Siatories agree that each ACSC city shall approz *e this 5ettlementeement and adopt an ordinance or resolution to implement for the ACSC Cities the rates, terms, and conditions reflected in the tariffs attached to the Settlement Agreement as Extubit A. Atmos and ACS C further agree that at such time as all of the ACSC Cities have passed an ordinance or resolution. consistent rrith the Settlement and Atmos has received such ordinance or resolution. Ahnos shall -R ithdraw its appeal of the currently pending RPM filing before the Railroad Commission of Texas in connection -nith the 2014 PM1 filing. Attachment A S. Atmos and the ACSC Cities father agree that the express terms of the Rider ml are supplemental to the filing, notice, regmiatory reviL-w. or appellate procedural process of the ratemal-mg pro «ions of Chapter 104 of the Texas [utilities Code. If the statute requires a mandatory action on behalf of the municipal regulatory authority or Atmos, the parties will follow the proti-i ,ions of such statute. If the statute allows discretion on behalf of the mnmicipal regulator} authority, the ACSC Cities agree that they shall exercise such discretion in such a way as to implement the provisions of the RRM tariff If Atmos appeals an action or inaction of an ACSC City regarding an RRtv1 filing to the Railroad Commission. the ACSC Cities agree that they wM not oppose the implementation of interim rates or advocate the imposition of a bond by Atmos consistent with the RR YI tariff Atmas agrees that it will make no faunas on behalf of its Ntid -Tex Division under the provisions of Section 103.301 of the Texas Utilities code while the Rider RRM is in place. In the event that a re—•ulatorp authority fails to act or enters an adverse decision regarding the proposed annual RRb£ adjustment. the F,aiiroad Commission of Texas shall have exclusive appellate jurisdiction, puruant to the provisions of the Texas Utilities Code, to review the action or inaction of the regulatory authority exercising er- clusive original jurisdiction over the RF-kf request. In addition, the Signatories agree that this Settlement Agreement shall not be construed as a waiver of the ACSC Cities right to initiate a show cause proceeding or the Company's right to file a Statement of Intent under the provisions of the Texas Utilities Code, 9. The Sigmatories a�eree that the terms of the Settlement Agreement are interdependent and indiv-m -ble. and that if any ACSC city enters an order that is inconsistent with this Settlement Agreement. then any Signatory may withdraw without being deemed to have waived any procedural right or to have taken any substantive position on any fact or issue by virtue of that Signatory' s entry into the Settlement Agreement or its subsequent %ithdrawal. If any ACSC city rejects this Settlement Agreement then this Settlement Agreement shall be void ab initro and counsel for the ACSC Cities shall thereafter only tale such actions as are in accordance with the Texas Ilisdpinary Rules of Professional Conduct. 10. The Signatories agree that all negotiations, discussions and conferences related to the Settlement Agreement are privileged, irradrmissrble, and not relevant to prove any issues associated with Atmos' 2014 RRM Min- and 2015 RRM firm. 11. The Signatories agree that neither this Settlement Agreement nor any oral or zz,Titten statements made during the cotuae of settlement negotiations may, be used for any purpose other than as necessary to support the entry by the ACSC Cities of an ordinance or resolution implementing this Settlement Agreement. 12. The Signatories aEpree that this Settlement Agreement is binding . on each Signatory onl y for the purpose of settling the issues set forth herein and for no other pumposes, and, except to the extent the Settlement Agreement governs a 5imatory's rights and obligations for future periods, this Settlement Agreement shall V not be binding or precedential upon a Signatory outside this proceeding. Attachment A 13. The Simatorim mee that this Settlement Agreement may be executed in multiple counterparts and maybe filed kith facsimile Signatures. Attachment A -- gvvul to this t day. of Niay, 2101 -5. Al-'VI OK ENERGY { ORP... F}lV-14TON • Bv• L47.":., J'Offa A- 1"Ids Tlv!Wml, Mid- I CKL)!Vj-;Ioj) I? Attachment A ATTORNEY FOR AIMS ttrmnms MCLUDE ME CH' :1-,S Of A RMPKF. ADDISON. Al,,.r,.N, AIXARADO. ANGUS, ANNA� .-kRCYLE. ARLINOTON, AUBREY, BEDFORD. BILELLFQEAD� -BENBROU.,L BEVERIN Fl--LS. BLOSSOM. 11LU R:D(;E, BOWJE. BOYD, 141ULIUH'0�0, 131",AVNWG30f), nVIRAM IMIRKURM•7 BULLMM. CADDO MILLS, CANTON. CARROLLTON. (']'DAR IMIMUMM&MMAXENIMILLE, CLYI)L, COLILLUL' CQT.QRAD0 CITY. CM,1ANCH", CO•,14NIERCE. COPOL-.DGE, COPPIMAS CORM111, CORR;10, CLY, (AMDALL CROMYT DVT5RTf1N(i'10N (1ARD1--.NSj 1,'ENBONI DUNCANTLLa FASTIAV)- N)(•VIAM VIMAG10 EMORY. MKS. EULESS. EVERMAN', 1'&:RVII:: 1 A1ZM-',7RS i3l',ANCH. FATE Ff,o`,37r-P tirlf,l- Ty, FOREST 'TILL, FORTWORTI-L FRISM FROST- GAJNF-9V1T-L-L% G;kRf.AN1), ORA-NU PRPME UMPEVENE. GUNTER, FIALTOM (71TY. HARKH MGM HASKEU� HAMR Hb%l I;. HIM41 A\10 PA.-RK. ITIG111 AND MNLY KE.N-1.0. KU,:XEDAUPE, KERENS, KERRIVIT.1,11F, KILLEEN. KRU.%-1- LAKE ANUMV LAKESIDE. ;,ANCAST7P. LEWISVILLE, :-1'4C()LN L11711-1� ELM, LOREM MAMSONVAM MA:-AIK( I. IMANISHUi), MCKINNLY. .1%,1ELISSA. 'AFSOMIT, %"DIAMHAM MURP"I NEWARK. NOCONA, NORTH RtCHLAND 1111.L5_ NMJ'h -;&L. OAKLE.Al, -PvMLA, PAIIST7NT, PA\11-7-,(-,%)t P l tlS, PARKA] , PETROLIA, P1 ANO, PONZIM"31, POTTNIMRO, PIMSPHM. Q j1TmAr\. RL,[) 0,1-LtiL -UNO (1_ -NRKT-R Ck7,,.\,rTY), RICHAR-DSON. R1(--.,I1,AN[3, RICHLAM.) 111LI-s. R.OA. 0KE, IORDKSON. iz()(770%,A:L. .10SCOhr 'AiDYSE CHY- SACASE, SAG,-' W, SANti0'd PARM MAUUMM SN5T)ER- SOIMFLAKE. ,V zt17 Z(7 W. S TA IRD, SIEPHENVILLE SPRfKG';, �',YFT. -"WA1'1-- ? I T7,iA,,PLHL TERRELL, THE COLONY, TROPHY C1.1173, TYT.71?, UNIVEMS11Y ]'AML VEINLIS. VL;,RNON, W�k(0, WATA-k-GA- %PESTLAKE, lFHITE -Fj'j I HN-fFNT. FALLS. iVC)f-)D L"AY.,?iND !YLI.E• i' S-ibjec- lc ❑pprovit by ACiC City Cz>tu-:;Hq Attachment A Exhibit A MIDTEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: C— COMMERCIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID --TEX DIVISION EXCEPT THE CITY OF Rider CEE Surcharge DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Sills Rendered on or after 0 61 0 9120 1 5 PAGE: Application Applicable to CommeroW Customers for ail natural gas provided at one Poirr: of Delivery and measured through one meter and to Industrial Customers With an average annual usage of €ess than 3O.= Ccf_ Type of Service Where service ofthe type desired by Customer is not already available at the Point a€ 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 addiW the Blowing Customer and CcF charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 40.00 per month Rider CEE Surcharge S 0.00 per month' Total Customer Charge S43-00 per month Commodity Charge —Ali Ccf S D_0802D per Cof Gas Cost Recovery: Plus an amount for gas costs and upstream: transportation costs calculated in acoordance with Part (a) and Par (b), respectively, of Rider GCR_ Weather Normalization Adjustment Plus or Knus an amount for weather norma €L -35on calculated in accordance with Rider W NA. Franchise Fee Adjustment Pius an amount for franchise fees calculated in accordance with Rider FF_ Rider FF is only apglecab3e to customers inside the corporate: limits of any incorporated municipality. Tax Adjustments Plus an arnourt for tax calculated in accordance with Rider TAX. Surcharges. Plus an amount for surcharges calculated in accordance Y&h the applicable dders). 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_ tRgffenCe Rg?rCr -E- CoMe'Vatot And Enemy EtAderay as approved In GUD 111170, Surdt3tt dit,'u e1rx� .any t, eta. AttachmentA Exi €'trr"tA MID TEX DIVISION €iRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: I —INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF First a M11vatu to 1.500 MMBtu DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 0£!0112015 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 Paint of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3.500 MMBiu per day vAll be provided at Company's s ®3e option and will require special contract arrangements between Company and Customer. Type of Service Where service a' the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract armn2ements betvmen Company and Customer may be required prior to service being furnished. Monthly Rate Customers monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed belay Charge Amount Customer Charge per Meter S 700.00 per month First a M11vatu to 1.500 MMBtu S 02937 per MMBtu Next 3,5D0 IAMBtu S 02451 per MMBar All MMBtu over 5,000 MMBw S 0.0401 per MhlBtu Gas Cost Recovery_ Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Par (b), respectively, e 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 €units of any incorporated municipality Tax Adjustment Plus an amen; for tax calculated in accordance with Rider TAX- Surcharges: Plus an amount for surcharges calculated in accordance with the applicabte rider(s). Curtailment Overpull tree Upon nofifia-3tion by Company of an event of curtailment or interruption of Custamers delhreries, Customer oil #, far each MMBtu delivered in excess or the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Plaits Gas Daily published for the applicable Gas Day m the table entitled 'Daily Price Survey." Replacement Index In the event the 'midpoint' or 'common' price for the Katy point listed in Platte Gas Daily in the table erstitled'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. Attachment A Exhbt A MID TEX DIVISION RRC Tariff No_ ATMOS ENERGY CORPORATION RATE SCHEDULE_ I — INDUSTRIAL SALES APPLICABLE TO_ ALL CUSTOMERS IN THE MID TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or alter 0610MO15 PAGE_ Agreement An Agreement for Gas Service may be required_ Notice Service hereunder and the rates for services pra�dded are subject to the orders of regulatory bodies having jurisdiction and tD the Company's Tariff for Gas Service_ Special Conditions In order to receive service under Rate 1, Customer must have the type of meter required by Company. Customer must pay Company aff costs associated with the acquisidion and installation of the meter. Attachment A Exhibit A MID -TEX DIIViS1ON RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: R- RESIDENTIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF Rider CE--- DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 090112015 PAGE Appf cation Applicable to Residential Customers for all natural gas provided a: one Pain: 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 ccxrtract arrangements between Company and Customer may be required prior to service being furnished_ Monthly Rate Customers monthly bill Will be calculated by adding the folfowing Customer and Caf charges to the amounts due underthe riders listed below- Charge Amount Customer Charge per Bill $ 18.80 per month Rider CE--- S 0.02 permonth' Total Customer Charge $ 18.92 per month Commodity Charge -AAQj W -02931 perCcl Gas Cast Recovery- Plus an amount Ibr gas costs and upstream transportation casts calculated in accordance with Part (a) and Par (b ), respectively, of Rider GCR_ 1Neather Normalization Adjustment Plus or Minus- an amount for weather normalization catcu elated in accordance with Rider WNA. Franchise Fee Adjustment Plus an amount for franchise fees calculated in accordance with bider FF. Rider FF is only appfiaable to customers inside the corporate fimits of any incorporated municipality. Tax Adjustment Plus an amount far tax calculated in accordance with Rider TAY- Surcharges: Plus an amount for surcharges calculated in accordance wiith the applicable rider(s), Agreement An Agreement fur Gas Service may be required_ Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdicticn and to she Company's Tariff for Czar Service. 'ReErEnte FJdegr � -COMM V'Vr" AM Energy �=emy as aPF474el hr (31J13 10:70, .i1a rge ttltrrg elte=VeA ly 1, 2016. Attac hment A ExhiNt A MID TEX DIVISION RRC Twill No_ ATMOS ENERGY CORPORATION RATE SCHEDULE: T — TRANSPORTATION Customer Charge per Meter ALL CUSTOMERS IN THE MID TEX DMSION EXCEPT THE CITY OF APPLICABLE TO- DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE_ Bills Rendered an or after 06/01/2015 PAGE: Application Applicable, m 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 far use in Customer's fawality. Type of Service Where sexvica of the type desired by Customer is not already available at the Point of Delivery, add-Mona[ charges and special contract arrangements bebween Company and Customer may be required prior to service being furnished_ Monthly Rafe Customer's bill will be calculated by adding the fallowing Customer and MMBtu charges to the amounts and quantiki� due underthe riders listed below.. Charge Amount Customer Charge per Meter S 700.011 per month Firs 0 MKStu to 1,500 fMMBw S 02937 per MMBtu Next 3.500 MMBtu 5 0215t per MMBtu All MMBtu over 5.4100 Maf.Btu 1 S 0.4401 per MMBtu Upstream Transportation Cast Recovery: Plus an amount for upstream transportation costs in accardarrVe wish Part tb) of Rider GCR. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RI, Franchise Fee Adjust nam Plus an amount far franchise fees calculated in accordance with Rider FF. Rider FF is only appGcaNe to customers inside the corporate limits of any incorporated rncmk:ipality. Tax Adjustment Ptus 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 Race Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customerwith multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of (i) 50.10 per WSW, or(it) 15035 of the difference per MMBtu between the highest and lowtrest'midpotnt' price for the Katy point listed in Platter Gas Daily in the table entitled 'Daily Price Survey' during such month. for the MMStu 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, Attachment A ExhlUt A MID -TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE: T — TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after OW1129115 PAGE: Curtailment Overpul[ Fee Upon notifr„ation by Company cf an event of curtailment or intecrupdon of Customers deliveries, Customer vuill, for each MMStu delivered in excess of the stated bevel a curtailment or interruption, pay Company 200% of the midpoint price for the Katy paint fisted in Rafts Gas Canty 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 Ffasts Gas Daily in the table enttled "Daily Price Survey" is no longer putt fished, Campanywifl calculate the applicable imbalance fees utiftzing a daily pace index recognized as iuthofrative 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 jurisdiGdon and to the Company's Tariff for Gas ServEe_ Special Conditions In order to receive service under Rate T. customer must have she type at meter required by Company. Customer must pay Company al casts associated with the acquisixaon and installation of the meter. Attachment A Exhibit A MID TEX DIVISION RRC Tariff No. ATMOS ENERGY CORPORATION RATE SCHEDULE: T— TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE. Bills Rendered on or after 06l M075 PAGE: Curtailment Overpull Fee Upon notfr..ation by Company of an even: of curtailment or interruption of Customees deliveries. Customer PAIL Far each ]MLIStu delivered in excess of the stated level of curtailment, or interruption, pay Company 2(10% of the midpeint price for the Katy point listed in Pia,* Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey.. Replacement Index In the event the 'midpomt" or -common" price for the Katy paint listed in Pk is Gaz Daily in the table entitied'Daily Price Survey" is no longer published. Company will calculate the applicable imbalance fees u,07jng a daily price index recognized as authoritative by the natural gas industry and mart 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 Tarilf for Gas Service. Special Conditions In order to receive service under Rate T. c storner must have the type of meter required by Company. Customer Must pay Company al casts associated with the acquisition and installation ofthe meter. Attachment A Exhibt A MID TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA–WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO- ALL CUSTOMERS IN THE MID TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE_ Bills Rendered on or after 1 VOM2— PAGE: Provisions for A-divsiment The Commodity Charge per CcF (IGO cubic feet) for gas service set forth in any Rate Schedules utilized by the cries of the Mid -Tex Division service area for determining normalized minter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustmerrt." The Weather Normal"sration Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April_ The fire regional weather stations are Ab?ene, Austin,. Dallas. Waco. and Wichita Falls. C mputaiien of Weather Normalization Adjustment The Weather Normafrsation Adjustment Factor shall be computed to the nearest one- hundred3h cent per CcFby the falloMng formula: (HSFi x (NDD -ADD) ) WNAFi Ri (Ely f (HSFi x ADD) ) Where i arty particular Rate Schedule or billing classification within any such particular Rat, Schedule that contains more than one billing classification WNAFi – Weather Normalization Adivat Trent Factor forthe P rate schedsrie or classification expressed in cents per Ccf Ri – Commodity Charge rate of temperature sensitive sales for the ith schedule or classification_ HSFi = heat sensitive 'actor For the ith schedule or dass6catxrn divided by the average bill count in that class NDD = bPEring 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 bin count in that Gass The Weather Normalization Adjustment far the jth customer in ith rate schedule is computed as: WNA; = WNAF x 91 Where qr; is the relevant sales quart , for the ith customer in kh rate schedule_ attachment A Exht"bl"t A MID TEX DMSION ATMOS ENERGY CORPORATION RIDER: WHA— WEATHER NORMALIZATION ADJUSTMENT ALL CUSTOMERS IN THE MID -TEX OMSION EXCEPT THE CITY OF APPt iCABLE TO_ DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after i 1101120i5 PAGE= Provisions for A,diustment The Commodity Charge per Cif (10 cubic feet) for gas service set forth in any Rate Schedules utilized by the cries of the Mid -Tex Division service area for determining normafszed venter period revenues shalt be adjus;eJ by an amount hereinafter descdtsed, which amount is referred to as the "Heather Normalization Adjustmenk_` The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of Itovember through April, The fnre regional weather stations are Abiilene.,Austin. Dallas, Waco. and Wi --Iaa Falls_ Carnruta5on of Weather Normalization Adiustment The Weather Normalization Adjustment Factor shalt be computed to the nearestone4lundredth cent per Ccf by the fol1mving formula: (HSFi x (NDD -ADD) ) WNAFi = Ri {SL.i + {HSFi x ADD) ) Where i = any particular mate Schedule orbiliing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor €or the P rate schedule or dassifkaticn expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classE 1CatiDn. HSFi = heat sensitive factorfryr the it schedule or dassificafxun divided by the average bill count in that lass NDD = bit3ing cycle normal heating degree days calculated as the simple ten year average of actual heating degree days. ADD = baring cycle actual heating degree days. Bli = base load safes for the E h schedule orclassification divided by the average bill count in that class The Weather Narmalbtation AdjustmW, for the jth customer €n ith rate schedule is computed as: WNA;= WNAF, x q; Where qr is the relevant safes quantity for the ?A customer in ith rate schedule_ Attad mentA MID TEX DIVISION ATMOS ENERGY CORPORATION Exhlx"t A RIDER_ WNA-- WEATHER MORRRALIZATiONADJUSTMENT ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF APPLiCRBLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after t 1104rz015 FAGS On or before June 1 of each year, the company pass on is website at atmosenergy.comimtx -wna, in Excel forma:, a Weaffier NormalizaPpn Adjustment JWNA) Report to show how the company calculated its WhtAs factor during the preceding winter season_ Additionally, an or before June 1 of each year, the company !Ales ono hard copy and a Excel version of the INAfA Report with the Railroad Commission of Texas' Gas SeRnaes Division, addressed to the Director of that DMsion_ Base Userhieat Use Factors Residential Commercial Base use Heatuse Base use Heat use Weather Station Car Ccf1HDD Cd Cc5'HDD Abilene 10.22 0.1404 98.8a 0.8372 Austin 11.51) 0.1443 213.62 0.7922 Dallas 14.12 a_200a 208.11 0.9095 Waco 9.74 0.1387 130.27 0.6351 Wichiu 11.79 0.1475 122.35 0.5772 Falls W-w h- Noml l-+ atlnn Arlitmtm-rit(WHAI R Mi!f On or before June 1 of each year, the company pass on is website at atmosenergy.comimtx -wna, in Excel forma:, a Weaffier NormalizaPpn Adjustment JWNA) Report to show how the company calculated its WhtAs factor during the preceding winter season_ Additionally, an or before June 1 of each year, the company !Ales ono hard copy and a Excel version of the INAfA Report with the Railroad Commission of Texas' Gas SeRnaes Division, addressed to the Director of that DMsion_ Attachment A Exhil3it A MID TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA— VVEATHER NORMA JZATION ADJUSTMENT Base UselHeat Use Factors ALL CUSTOMERS IN THE MID -TEX DIVISION EXCEPT THE CITY OF APPLICABLE TO: DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered on or after 11101/2015 PAGE- Waa'her FSt�rmg�rratinn Ada�Kimar�' (+IJNhI Rncuttr} Can or before June 1 of each year, the company posts on its websrte at atmosenergy.obmlmix -wna, in Excel formal, a Weat#ser Normalization Aductment (WMA) Report to shown how the company ca�culated its WHAs factm durin the preceding winter season- Additionally, on or before June 1. of each year. the company files once hard copy and a Excel version of the i' M Report with the Railroad Commission of Texas' Gas Services Division. addressed to the Director of that Division. Base UselHeat Use Factors Residential commercial Base use Heat use Base use Heat use Weather Station Ccf Cc €1HDD CrF CcJHDD AbKene 1622 0.1,404 98.E0 0.8372 Austin 11.59 0.5443 213.62 0.7922 Dallas 14.12 0.2000 208.11 4.9085 Waco 9.74 0.1387 130.27 0.8351 VC101Iita 115 79 0.1475 12235 0.5772 Falls Waa'her FSt�rmg�rratinn Ada�Kimar�' (+IJNhI Rncuttr} Can or before June 1 of each year, the company posts on its websrte at atmosenergy.obmlmix -wna, in Excel formal, a Weat#ser Normalization Aductment (WMA) Report to shown how the company ca�culated its WHAs factm durin the preceding winter season- Additionally, on or before June 1. of each year. the company files once hard copy and a Excel version of the i' M Report with the Railroad Commission of Texas' Gas Services Division. addressed to the Director of that Division. AMchmwt A Exhibit A Mro TEX ONISIOH ATMOS ENERGY CORPORATION RIDER: WNA— WEATHER NORMALIZATION AOJUSTMENT APPLICABLETO: ALL CUSTOMERS IN THE MIDTEX DIVISION EXCEPT THECRY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE: Bills Rendered ono, after 1110112015 PAGE: Can —W m . Basr UsefH.e t Use Fazicrs Heal use Resid -s .l 98.30 ease use Heat use Weather BtAicn Cet CcE44D7 Ab:7ene 1022 0,14D4 Austin 1758 0.£443 Da9as 14-$2 0.2000 W.m 2.74 0,£387 Wkw1a 1170 0.1478 Faits Can —W m . Base use Heal use C� C�+HDO 98.30 0.0372 213.52 0.70Yt 208.11 0.00:5 tX27 0.0351 122.35 0.5172 weatw Nam+arcalk" ATImmomt U= Rant On cr before June 1 of each year, Or c parry pasts m i:z websise at aanasan y.eamlms wna, in Excel forma,', a iVeshw Nom izaf*n Aduaimeid (LWA) Report to show hm- the s pmy calmlited Its WfFAs friar dur'er0 the preceding %ifter season Add6onaliy, an tr befae Jame t of eaeh year, the tympany fles acre hard copy and a Ecod —sim of ttw WNA Repotf with the Ra7foad Commission of Texas' Gas Sern*s Qimiort addressed to the Direchxaf that Division. k )!• ![|72)$d §#7§§mK =! (§ §g)$3 §§k - §(_ , , « !_: {§ . )�ne� m -,- ) -- - - - - -- ! - 2. l...