O-3382-5-16ORDINANCE NO. 3382-5-16
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE
ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY
CORPORATION, MID-TEX DIVISION REGARDING THE COMPANY'S 2016
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 SETTLEMENT TARIFFS TO BE JUST AND REASONABLE
AND IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE
REASONABLE RATEMAKING EXPENSES; PROVIDING A SAVINGS CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Allen, 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 Armes 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, on March 1, 2016, Atmos Mid -Tex filed its 2016 RRM rate request with ACSC Cities; and
WHEREAS, ACSC coordinated its review of the 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, 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 $29.9 million on a system -wide basis; and,
WHEREAS, the attached tariffs 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 RRM Tariff contemplates reimbursement of ACSC's reasonable expenses associated with
RRM applications.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
' SECTION 1. The findings set forth in this Ordinance are hereby in all things approved.
SECTION 2. The City Council finds that the settled amount of an increase in revenues of $29.9 million on a
system -wide basis 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 2016 RRM filing, 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 A, are just and reasonable, and are
designed to allow Atmos Mid -Tex to recover an additional $29.9 million in revenue over the amount allowed
under currently approved 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 Armes' next
RRM filing shall be as set forth on Attachment C, attached hereto and incorporated herein.
SECTION 5. Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in
processing the Company's 2016 RRM filing.
SECTION 6. To the extent any resolution or ordinance previously adopted by the Council is inconsistent
with this Ordinance, it is hereby repealed.
SECTION 7. If any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or
invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance and
the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never
existed.
SECTION 8. Consistent with the City Ordinance that established the RRM process, this Ordinance shall
become effective from and after its passage with rates authorized by attached tariffs to be effective for bills
rendered on or after June 1, 2016.
SECTION 9. A copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Chris Felon, Vice President
of Rates and Regulatory Affairs Mid -Tex Division, Atmos Energy Corporation, 5420 LJB Freeway, Suite
1862, Dallas, Texas 75240, and to Geoffrey Gay, 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 ALLEN, COLLIN
COUNTY TEXAS, ON THIS 24TH DAY OF MAY 2016.
APP VED:
Stephen Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
Peter G. Smith, CITY A41TORNEY Shelley B. Georg , QC, CITY SECRETARY
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Ordinance No. 3382-5-16. Page 2
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MID-TEX DIVISION
ATMOS ENERGY CORPORATION
Attachment A
RRC Tariff No:
RATE SCHEDULE:
R— RESIDENTIAL SALES
Customer Charge per Bill
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2018
PAGE: 12
Application
Applicable to Residential Customers for all natural gas provided at one Point 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 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
$ 19.10 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$19.12 per month
Commodity Charge— All Ccf
$0.11378 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.
'Relererm Rider CEE- Conservation and Energy Efficiency as approved in GUD 10170 Surcharge billing elFective July 1. 2015,
I
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
Attachment A
RRC Tariff No:
RATE SCHEDULE:
C— COMMERCIAL SALES
Customer Charge per Bill
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 13
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
$ 41.75 per month
Rider CEE Surcharge
$ 0.02 per month'
Total Customer Charge
$ 41.77 per month
Commodity Charge — All Cef
$ 0.08494 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.
1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
C
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
I — INDUSTRIAL SALES
Customer Charge per Meter
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 0610112016
PAGE: 14
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
Customers 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
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0486 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 Plaits 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
Attachment A
RRC Tariff No:
RATE SCHEDULE:
I — INDUSTRIAL SALES
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
APPLICABLE TO:
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 0 610 712 0 7 6
PAGE: 15
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.
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AttachmentA
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
First 0 MMBtu to 1,500 MMBtu
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 06/01/2016
PAGE: 16
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 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 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
Customer Charge per Meter
$ 738.00 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.3096 per MMBtu
Next 3,500 MMBtu
$ 0.2267 per MMBtu
Al MMBtu over 5,000 MMBtu
$ 0.0486 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
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
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 Plaffs 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.
1
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
Attachment A
RRC Tariff No:
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 06/01/2016
PAGE: 17
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 Plaits 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 Plaits 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.
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Attachment 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
WNAFi
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE:
Bills Rendered on or after 11/0112016
PAGE: 41
Provisions for Adiustment
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.
Computation of Weather Normalization Adjustment
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
'
Where
(BLi + (HSFi x ADD) )
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 ;th 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:
WNA=
WNAF, x qq
Where q;i is the relevant sales quantity for the jth customer in ith rate schedule.
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Attachment 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 11/0112018
PAGE: 42
Base Use/Heat Use Factors
' Weather Normalization Adiustment(WNA)Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-Ma, 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
Cd
Ccf/HDD
Cd
Ccf1HDD
Abilene
10.09
0.1392
98.01
0.6440
Austin
11.21
0.1551
203.36
0.8564
Dallas
13.72
0.2048
189.83
0.9984
Waco
9.89
0.1411
129.75
0.6695
Wichita
11.49
0.1506
122.35
0.5967
Falls
' Weather Normalization Adiustment(WNA)Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-Ma, 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.
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Attachment C
File Dale March 1,2016
ATMOS ENERGY CORP.,MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT
TEST YEAR ENDING DECEMBER 31,M15
Shared SeMcas Mid-Tex Direct
Post- Poat-
Pension Retlrement Pension Supplemental Retirement
Lina Account Plan Medical Plan Account Plan Executive Benefit Medical Plan Adjustment
No. Description (-PAP-) (•FAS106-) I ("PAP-) Plan 1'SERP-) I-FA3106.9 Tota
W (b) (p) (d) le) (1) (g)
1 Fiscal Year 2016 Towers Watson Report as adjusted(1).(3) $ 5,101,680 $ 2.896,450 $ 7,840,683 $ 150.433 $ 4,466,430
2 OBM Expense Factor(2) 9641% 9641% 37.42% 20.T7% 37.42%
3 Fiscal Year 2016 Actuarially Determined OBM Bene6is(Ln 1 x Ln 2) $ 4,918,640 $ 2,]92,4]3 $ 2,933,599 $ 31,249 $ 1,671,119
4 Allocation to Md-Tex(2) 4056% 40.56% 71.52% 10000% 71.52%
5 Mid-Tex Benefits Expense Included in Rates-Proposed(Ln 3 x Ln 4) 11995,016 1.132.659 $ 2,098,28 1. 41) 1,195, fi.152,393
6
Mid-Tres Benefits Expanse par DUD 103%and RRM Test Year Ending
T December 31,2014 Benchmark(4) $ 2,831,859 $ 2.013,260 $ 2,925,600 $ 34,809 IS 2,695,721 $ 10,501,250
8
9 Test Year Adjustment(Lim S thous Line]) $ (836,844) $ (880.601) $ (82],3]9) $ (3.561) $ (1,500,472) $ (4,045,856)
10
11 AdjuslmeMSummerY
12 Account 922 $ (836,849) $ (880,601) $ - $ - $ - $ (1]1],44.5)
13 Account 926 (82]3]91 135611 (15004]2) (23314121
14 Total(Ln 12 plus Ln 13) $ (836,8441 $ (880.601) $ (82],3791 $ 13,5617 $ (1,00.4]21 $ (4,048,856)
15
16
1] Notes
18 1 Studies not aWlirable t0 Mid-Tex or Shared Services are omitted
19 2.The factors on Lines 2 and 4 are based on the factors in 2016 RRM(Test Year Ending December 31,2015).
20 3 SSU amounts include cost centers which do not allocate to M6Tex for rale making purposes.
21 4.CUD No.10359 is Me benchmark forJanuaMMay which is Me same benchmark as used in the RRM TYE December 31,2014 for June-December.
WP F-23
Page 1 of 2
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