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HomeMy WebLinkAbout14-3608 ord32 ORDINANCE NO. 14 -3608 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS, APPROVING A NEGOTIATED SETTLEMENT AGREEMENT BETWEEN THE STEERING COMMITTEE OF CITIES SERVED BY ATMOS WEST TEXAS ( "CITIES ") AND ATMOS ENERGY CORP., WEST TEXAS DIVISION REGARDING THE COMPANY'S 2013 STATEMENT OF INTENT TO INCREASE RATES IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE TARIFFS ATTACHED TO THE SETTLEMENT AGREEMENT TO BE JUST AND REASONABLE; APPROVING A NEW RATE REVIEW MECHANISM; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES; REPEALING CONFLICTING RESOLUTIONS OR ORDINANCES; DETERMINING THAT THIS ORDINANCE 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 ORDINANCE TO THE COMPANY AND THE CITIES' LEGAL COUNSEL. WHEREAS, the City of Plainview, Texas ( "City) is a gas utility customer of Atmos Energy Corp., West Texas Division ( "Atmos West Texas" or "Company "), and a regulatory authority with an interest in the rates and charges of Atmos West Texas; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Atmos West Texas ( "Cities "), a coalition of similarly situated cities served by Atmos West Texas that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos West Texas service area; and WHEREAS, on or about October 18, 2013, the Company filed with the City its Statement of Intent to change rates in all municipalities exercising original jurisdiction within its West Texas Division service area; and WHEREAS, Cities coordinated a review of Atmos West Texas' Statement of Intent filing through its designated attorneys and consultants, to resolve issues identified by Cities in the Company's filing; and WHEREAS, Cities have successfully relied upon an annual Rate Review Mechanism ( "RRM ") as a substitute for the statutory GRIP process prior to the filing of the Company's previous two Statement of Intent rate cases and desire to implement a new RRM process; and Ord. No. 14 -3608 Atmos 2013 Rate Case WHEREAS, Cities and Atmos West Texas have negotiated a new RRM process to govern ratesetting in 2015 and beyond; and WHEREAS, Cities' Executive Committee, legal counsel and consultants recommend that Cities approve the rate tariffs and RRM tariff ( "Exhibit A" to the attached Settlement Agreement), which will increase the Company's revenues by $8.3 million on a system -wide cost of service basis; and WHEREAS, the Exhibit A rate tariffs implementing the new rates are consistent with the negotiated resolution reached by Cities and are just, reasonable, and in the public interest, and will lead to rates throughout the Company's service territory that are economically equivalent to rates based on a system -wide cost of service; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS: SECTION I. That the findings set forth in this Ordinance are hereby in all things approved. SECTION II. That the City Council approves the attached Settlement Agreement as a fair resolution to the Company's 2013 Statement of Intent rate filing. SECTION III. WHEREAS, the effective date of new rates is April 1, 2014. That the City Council finds the existing rates for natural gas service provided by Atmos West Texas are unreasonable and new tariffs which are attached to the Settlement Agreement as Exhibit A and incorporated herein, are just and reasonable, the rates therein established are based on a system -wide cost of service, and are hereby adopted. The new RRM process reflected in the tariff included in Exhibit A is hereby approved. SECTION IV. That Atmos West Texas shall reimburse the reasonable ratemaking expenses of the Cities in processing the Company's Statement of Intent filing and negotiating a new RRM process. SECTION V. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Ord. No. 14 -3608 Atmos 2013 Rate Case 33 34 SECTION VI. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION VII. That 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 VIII. That 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 April 1, 2014. SECTION IX. That a copy of this Ordinance shall be sent to Atmos West Texas, care of Mr. Jeffrey Foley, Vice President, Rates and Regulatory Affairs, 5110 80 Street, P.O. Box 1121, Lubbock, Texas 79408 -1121, and to Geoffrey Gay, General Counsel to Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED on first reading this 20 day of March, 2014. PASSED AND APPROVED on second reading this 25 day of March, 2014. ndell Dun ap, Mayor ATTEST: Ord. No. 14 -3608 Belinda Hinojosa, City Secret 'r r Atmos 2013 Rate Case SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORPORATION, WEST TEXAS DIVISION AND THE WEST TEXAS CITIES STEERING COMMITTEE WHEREAS, this settlement agreement (the "Settlement Agreement ") is entered into by Atmos Energy Corporation's West Texas Division ( "Atmos Energy" or the "Company ") and the West Texas Cities Steering Committee ( "WTX Cities "), which consists of the cities on Exhibit E (collectively "Signatories "); WHEREAS, Atmos Energy currently has pending before the WTX Cities a Statement of Intent to change rates within the incorporated areas of its West Texas Division ( "2013 Rate Filing "); and WHEREAS, the WTX Cities have hired experts and lawyers to analyze the rates proposed by Atmos Energy in its Rate Filing; and WHEREAS, the Signatories agree that resolution of this matter by settlement agreement will significantly reduce the amount of reimbursable rate case expenses associated with this matter; and WHEREAS, the Settlement Agreement resolves all issues between the Signatories regarding the Company's 2013 Rate Filing, which is currently pending before the WTX 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 2013 Rate Filing can best be accomplished by each WTX City approving this Settlement Agreement and the rates, terms and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A; NOW, THEREFORE, in consideration of the mutual agreements and covenants established herein, the Signatories, through their undersigned representatives, agree to the following Settlement Terms as a means of fully resolving all issues between the Atmos Energy and the WTX Cities involving the 2013 Rate Filing: Settlement Terms 1. The Signatories agree to the rates, terms and conditions reflected in the tariffs attached to this Settlement Agreement as Exhibit A. These tariffs should allow Atmos Energy's West Texas Division an additional, system -wide $8.3 million in annual revenues as illustrated in the proof of revenues attached as part of Exhibit B to this Settlement Agreement. The Signatories agree that the $8.3 million revenue increase is a "black box" amount and is not tied to any specific expense in Atmos Energy's West Texas Division's underlying cost of service. Signatories further agree that the rates, terms and conditions reflected in Exhibit A to this Settlement Agreement comply with the rate - setting requirements of Chapter 104 of the Gas Utility Regulatory Act ( "GURA "). The gas rates, terms and conditions established by this Settlement Agreement shall, subject to municipal approval, be effective for bills rendered on and after April 1, 2014, and should a 1 35 Description Total Shared Services Unit - Pension Account Plan ( "PAP ") $546,158 Shared Services Unit - Post - Retirement Medical Plan ( "FAS 106 ") $388,281 West Texas Division — PAP $1,843,850 West Texas Division — FAS 106 $2,732,959 West Texas Supplemental Executive Retirement Plan ( "SERP ") $77,628 Customer Class Customer Charge Consumption Charge per Ccf Residential $15.50 $0.101624 Commercial $35.00 $0.10094 Industrial /Transportation $300.00 $0.07388 Public Authority $100.00 $0.09023 municipality not approve this Settlement Agreement in time for Atmos Energy to implement rates on April 1, 2014, the Signatories agree that on April 1, 2014, Atmos Energy's existing rates will be established as temporary rates for service on and after that date and such temporary rates will be subject to reconciliation back to April 1, 2014, through a surcharge to give effect to the rates agreed to in this Settlement Agreement; provided that the surcharge period be no longer than a period of sixty days. 2. The Signatories agree that rates within Atmos Energy's West Texas Division have, under this Settlement Agreement, been established consistent with implementing a system -wide cost of service methodology. 3. The Signatories agree that it is reasonable to include State Institution customers within the Public Authority customer class. The Signatories further agree to the following customer charges and consumption charges for customers residing in the WTX Cities. These rates are reflected in the rate schedules attached as Exhibit A. West Texas Cities Rate Jurisdiction (Incorporated Areas) 4. Signatories agree that the September 30, 2013 balance of $2,881,345.41 related to the Company's regulatory asset under 16 TEx. ADMIN. CODE § 8.209 is reasonable and prudently incurred and shall be included in the Company's rate base. 5. To give effect to Section 104.059 of GURA, Signatories agree that the base year level of pension - related and other post - employment benefits expenses, as shown on the attached Exhibit D and summarized below, shall be as follows: 6. Signatories agree that the Rider Tax, Rider FF, Rider WNA and Rider GCA, which are attached as Exhibit A, are reasonable and should be approved. 2 7. Signatories agree that the base load and heat sensitivity factors referenced in the WNA tariff shall be updated to correspond to those identified in Exhibit F to this Settlement Agreement. 8. Signatories agree that in an effort to streamline the regulatory review process a new Rate Review Mechanism ( "Rider RRM ") should be adopted. The Rider RRM provides for an annual rate adjustment to reflect changes in billing determinants, operating and maintenance expense, depreciation expense, other taxes expense, and revenues as well as changes in capital investment and associated changes in gross revenue related taxes. The revised RRM tariff is included in Exhibit A. Rider RRM will establish rates for the WTX Cities based on the system -wide cost of serving the West Texas Division, which includes the Amarillo, Lubbock and WTX Cities rate jurisdictions. 9. The Signatories agree that the Company's annual RRM filing will reflect an actual capital structure comprised of equity and long -term debt as of the test period end, adjusted for any known and measurable changes that have occurred prior to the file date. Signatories further agree that the equity portion of the capital structure utilized in an annual RRM filing shall not exceed 55% equity. Notwithstanding the preceding sentence, in the event that the Railroad Commission of Texas ( "Commission ") issues a final rate order adopting a capital structure for Atmos Energy that exceeds 55% equity, the Signatories agree that the annual RRM filing will reflect that Commission - approved capital structure. 10. The Signatories agree that for purposes of interim rate adjustments filed pursuant to Section 104.301 of GURA, Atmos Energy shall use the net plant amount of $402,630,670 as the beginning plant balance for the first interim rate adjustment ( "IRA ") filing made pursuant to Section § 104.301. The Signatories agree that any filing made pursuant to Section 104.301 of GURA shall be based on the cost of changes in the investment in the West Texas Division, which includes the Amarillo, Lubbock and WTX Cities rate jurisdictions. The Signatories further agree that Atmos Energy shall use the capital structure and cost of debt and equity established in the Commission's final order in GUD No. 10170 and the additional factors identified on the attached Exhibit C for future IRA filings. 11. The Signatories agree that Atmos Energy shall not create a regulatory asset associated with the over and - under collection of franchise fees unless specifically authorized to do so by either a municipal authority having original jurisdiction over the Company's gas utility rates or the Railroad Commission of Texas. 12. With regard to rate case expenses, Signatories agree that: (1) WTX Cities' rate case expenses shall be recovered from customers within the incorporated areas of the WTX Cities rate jurisdiction and; (2) Company expenses shall be recovered from customers within the entire incorporated areas of the West Texas Division, which includes the WTX Cities, Amarillo and Lubbock rate jurisdictions. Signatories further agree that the parties' reasonable rate case expenses should be recovered by surcharge over a twelve -month period as shown in the Rider SUR, attached as Exhibit A. 13. The Signatories agree to support and seek municipal approval of this Settlement Agreement. 3 37 38 17. The Signatories agree that this Settlement Agreement may be executed in multiple counterparts and may be filed with facsimile signatures. Agreed to this day of February, 2014. ATMOS ENERGY CORP, WEST TEXAS DIVISION By: 14. The Signatories agree that neither this Settlement Agreement nor any oral or written statements made during the course of settlement negotiations may be used for any purpose other than as necessary to support the entry by a City of an ordinance or resolution approving this Settlement Agreement. Signatories further expressly agree that this Settlement Agreement and any oral or written statements made during the course of settlement negotiations are privileged, inadmissible, and not relevant to prove any issues associated with Atmos Energy's 2013 Rate Filing. 15. The Signatories agree that the terms of the Settlement Agreement are interdependent and indivisible, and that if a 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 withdrawal. 16. The Signatories agree that this Settlement Agreement is binding on each Signatory only for the purpose of settling the issues set forth herein and for no other purposes, and except to the extent the Settlement Agreement governs a Signatory's rights and obligations for future periods, this Settlement Agreement shall not be binding or precedential upon a Signatory outside this proceeding. David J. Park STEERING COMMITTEE OF CITIES SERVED BY ATMOS WEST TEXAS By: Geoffrey M. Gay Charge Amount Customer Charge $ 15.50 Consumption Charge $ 0.10162 per Ccf RATE SCHEDULE: RESIDENTIAL GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 4/01/2014 PAGE: WEST TEXAS DIVISION ATMOS ENERGY CORPORATION Availability This schedule is applicable to general use by Residential customers for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an altemative supply of natural gas. Monthly Rate EXHIBIT A The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). 39 Charge Amount Customer Charge $ 35.00 Consumption Charge $ 0.10094 per Ccf RATE SCHEDULE: COMMERCIAL GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 4/01/2014 PAGE: 40 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Availability This schedule is applicable to Commercial customers, including hospitals and churches, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). Charge Amount Customer Charge $ 300.00 Consumption Charge $ 0.07388 per Ccf RATE SCHEDULE: INDUSTRIAL GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 4/01/2014 PAGE: WEST TEXAS DIVISION ATMOS ENERGY CORPORATION Availability This schedule is applicable to the sales to any industrial or commercial customer whose predominant use of natural gas is other than space heating, cooking, water heating or other similar type uses. Service under this schedule is available to eligible customers following execution of a contract specifying the maximum hourly load. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). EXHIBIT A 41 Charge Amount Customer Charge $ 100.00 Consumption Charge $ 0.09023 per Ccf RATE SCHEDULE: PUBLIC AUTHORITY GAS SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA - Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 4/01/2014 42 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Availability This schedule is applicable to general use by Public Authority type customers, including public schools, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). Charge Amount Customer Charge per Meter $ 300.00 per month Consumption Charge $ 0.07388 per Ccf RATE SCHEDULE: TRANSPORTATION SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on or after 4/01/2014 PAGE: WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., West Texas Division Distribution System 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 with an estimated annual usage greater than 100,000 Ccf per 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 bill will be calculated by adding the following Customer and Ccf charges to the amounts and quantities due under the riders listed below: Upstream Transportation Cost Recovery: The customer is responsible for all upstream transportation costs. Retention Adjustment: Plus a quantity of gas equal to the Company's most recently calculated financial L &U percentage for the twelve months ended September multiplied by the gas received into Atmos Energy Corporation's West Texas Division for transportation to the customer. 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). Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). The West Texas Division Rider RRM applies to this schedule. Conversions: Units may be converted from Ccf to Mcf or Mmbtu as necessary to comply with the underlying transportation agreement. 43 RATE SCHEDULE: TRANSPORTATION SERVICE APPLICABLE TO: WEST TEXAS CITIES SERVICE AREA — Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on or after 4/01/2014 PAGE: 44 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Imbalance Fees AD 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 a monthly imbalance fee at the end of each month as defined in the applicable Transportation Agreement, 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 "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha ". Replacement Index In the event the "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha" 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 transportation service under this tariff, customer must have the type of meter, instrumentation, and communication required by Company. Customer must pay Company all costs associated with the acquisition and installation of the required equipment. RATE SCHEDULE: WEST TEXAS DIVISION GAS COST ADJUSTMENT (GCA) RIDER APPLICABLE TO: ALL SERVICE AREAS IN THE WEST TEXAS DIVISION EFFECTIVE DATE: Bills Rendered on and after 10/01/2012 PAGE: WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Application Gas bills issued under rate schedules to which this Rider applies will include adjustments to reflect decreases or increases in purchased gas costs or taxes. Accumulated Deferred Gas Costs shall also be adjusted for gas cost amounts which are uncollectible. Any such adjustments shall be filed with the appropriate regulatory authority before the beginning of the month in which the adjustment will be applied to bills. The amount of each adjustment shall be computed as follows: Gas Cost Adiustment (GCA) The GCA to be applied to each Ccf billed shall be computed as follows and rounded to the nearest $0.01: GCA= (G /S + CF) Where: 1. "G ", in dollars, is the expected cost of gas for the expected sales billing units. 2. "S ", in Ccf as measured at local atmospheric pressure, is the expected sales billing units to be billed to customers in the respective section of the Company's West Texas Division. 3. "CF ", in $ /Ccf as measured at local atmospheric pressure, is a correction factor charge per Ccf to adjust for the cumulative monthly differences between the cost of gas purchased by the Company and the amount of gas cost billed the customer plus any gas cost which is uncollectible. More specifically, CF shall be calculated as follows: CF = (alb) + (c /b) a = over (under) collection dollar amount for the 12 month period ending September. b = expected estimated sales volumes for the future 12 month period ending November. c = net uncollectible gas cost, that is: (uncollectible gas cost for the previous 12 months ended September) — (subsequently collected gas cost for the previous 12 months ended September) Once a year, on a 12 months ended September basis, the Company shall review the percentage of lost and unaccounted for gas. If this percentage exceeds 5% of the amount metered in, the correcting account balance will be reduced so that the customer will effectively be charged a maximum of 5% for lost and unaccounted for gas and the Company will absorb the excess. 45 RATE SCHEDULE: WEST TEXAS DIVISION WEATHER NORMALIZATION ADJUSTMENT (WNA) RIDER WNAF i R i (HSF i (NDD -ADD) ) = (BL i + (HSF i x ADD ) Where PAGE: i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAF i = Weather Normalization Adjustment Factor for the rate schedule or classification expressed in cents per Ccf R i = base rate of temperature sensitive sales for the i` schedule or classification utilized HSF i = heat sensitive factor for the i schedule or classification divided by the average bill count in that class NDD i = billing cycle normal heating degree days ADD i = billing cycle actual heating degree days BL i = base load sales for the i schedule or Classification divided by the average bill count in that class RATE SCHEDULE: WEST TEXAS DIVISION WEATHER NORMALIZATION ADJUSTMENT (WNA) RIDER APPLICABLE TO: ALL AREAS IN THE WEST TEXAS DIVISION EFFECTIVE DATE: Bills Rendered on and after 10/01/2012 PAGE: 46 , ATMOS ENERGY CORPORATION WEST TEXAS DISTRIBUTION SYSTEM EXHIBIT A Provisions for Adiustment The base rate per Ccf (100,000 Btu) for gas service set forth in any Rate Schedules utilized in all cities in the West Texas Division or their environs 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, commercial, public authority, and state institution bills based on meters read during the revenue months of October through May. Computation of Weather Normalization Adiustment The Weather Normalization Adjustment Factor shall be computed to the nearest one - hundredth cent per Ccf by the following formula: The Weather Normalization Adjustment for the ?customer in i rate schedule is computed as: WNA WNAF i x qii Where qii is the relevant sales quantity for the j' Customer in i' rate schedule RIDER: FF — FRANCHISE FEE ADJUSTMENT APPLICABLE TO: ALL AREAS IN THE WEST TEXAS DIVISION EFFECTIVE DATE: Bills Rendered on and after 10/01!2012 PAGE: WEST TEXAS DIVISION ATMOS ENERGY CORPORATION EXHIBIT A Application Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a municipal franchise fee upon Company for the Gas Service provided to Customer. Franchise Fees to be assessed solely to customers within the municipal limits. This does not apply to Environs customers. Monthly Adjustment Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees payable for the Gas Service provided to Customer by Company. Municipal franchise fees are determined by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the percentage and applicability of franchise fees. From time to time, Company will make further adjustments to Customer's bill to account for any over- or under - recovery of municipal franchise fees by Company. 47 RIDER: TAX — TAX ADJUSTMENT APPLICABLE TO: ALL AREAS IN THE WEST TEXAS DIVISION EFFECTIVE DATE: Bills Rendered on and after 10/01/2012 PAGE: 48 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION Application EXHIBIT A Applicable to Customers taking service under Residential, Commercial, Industrial, Public Authority, and State Institution customers to the extent of state gross receipts taxes only. Each monthly bill shall be adjusted for state gross receipts taxes imposed by Sections 182 -021 - 182 -025 of the Texas Tax Code. Each monthly bill shall also be adjusted by an amount equivalent to the amount of all applicable taxes and any other governmental impositions, rentals, fees, or charges (except state, county, city, and special district ad valorem taxes and taxes on net income) levied, assessed, or imposed upon or allocated to Company with respect to the Gas Service provided to Customer by Company, and any associated facilities involved in the performance of such Gas Service. Each monthly bill shall also be adjusted by an amount equivalent to the proportionate part of any increase or decrease of any tax and any other governmental imposition, rental, fee, or charge (except state, county, city, and special district ad valorem taxes and taxes on net income) levied, assessed, or imposed subsequent to the effective date of this tariff, upon or allocated to Company's operations, by any new or amended law, ordinance, or contract. Charge Amount Turn On New Service With Meter Set $ 45.00 Turn On Service (shut -In test required) $ 37.00 Turn On Service (meter read only required) $ 21.00 Miscellaneous Service Charge Calls $ 10.00 Reconnect Delinquent Service or Service Temporarily Off at Customer's Request $ 47.00 Retum Check Fee $ 25.00 Tampering Fee $ 150.00 Charge Amount Turn On New Service With Meter Set $ 67.50 Turn On Service (shut -In test required) $ 55.50 Turn On Service (meter read only required) $ 31.50 Miscellaneous Service Charge Calls $ 15.00 Reconnect Delinquent Service or Service Temporarily Off at Customer's Request $ 70.50 Tampering Fee $ 150.00 RATE SCHEDULE: OTHER SERVICE CHARGES APPLICABLE TO: ALL AREAS IN THE WEST TEXAS DIVISION EFFECTIVE DATE: Bills Rendered on and after 10101/2012 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION EXHIBIT A The service charges on this tariff will be applied in accordance with Atmos Energy's Quality of Service rules and Commission rule 7.45. DURING BUSINESS HOURS: These charges apply to services initiated between 8am and 5pm, Monday through Friday. AFTER BUSINESS HOURS: These charges apply to services initiated between 5pm and 8am. Monday through Friday. and all day Saturday and Sunday. 49 RATE SCHEDULE: RRM - Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 1 OF 6 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION Exhibit A I. Applicability Applicable to Residential, Commercial, Industrial, Public Authority, and Transportation tariff incorporated areas customers in the West Texas Division of Atmos Energy Corporation ( "Company ") with the exception of those customers within the Cities of Amarillo, Lubbock, Dalhart, and Channing. This Rate Review Mechanism ( "RRM ") provides for an annual adjustment to the Company's Residential, Commercial, Industrial, Public Authority, and Transportation Rate Schedules ( "Applicable Rate Schedules "). Rate calculations and adjustments required by this tariff shall be determined on a System -Wide cost basis. II. Definitions "Test Period" is defined as the twelve months ending September 30th of each preceding calendar year. The "Effective Date" is the date that adjustments required by this tariff are applied to customer bills. The annual Effective Date is March 15. Unless otherwise noted in this tariff, the term "Final Order" refers the final order issued by the Railroad Commission of Texas in GUD 10170. The term "System- Wide" means all incorporated and unincorporated areas served by the Company within the West Texas Division. "Review Period" is defined as the period from the Filing Date until the Effective .Date. The "Filing Date" is as early as practicable, but no later than December 1 of each year. III. Calculation The RRM shall calculate an annual, System -Wide cost of service ( "COS ") that will be used to adjust applicable rate schedules prospectively as of the Effective Date. The annual cost of service will be calculated according to the following formula: Where: COS= OM +DEP +RI +TAX +CD -ADJ OM = all reasonable and necessary operation and maintenance expenses from the Test Period adjusted for known and measurable items and prepared RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 2 OF 6 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION consistent with the rate making treatments approved in the Final Order. Known and measurable adjustments shall be limited to those changes that have occurred prior to the Filing Date. OM may be adjusted for atypical and non - recurring items. Shared Services allocation factors shall be recalculated each year based on the latest component factors used during the Test Period, but the methodology used will be that approved in the Final Order. DEP = depreciation expense calculated at depreciation rates approved by the Final Order from GUD 10041 for the West Texas Division direct depreciation rates and the Final Order from GUD 10170 for Shared Services depreciation rates RI = return on investment calculated as the Company's pretax return multiplied by rate base at Test Period end. Rate base is prepared consistent with the rate making treatments approved in the Final Order, except that no post Test Period adjustments will be permitted. Pretax return is the Company's weighted average cost of capital before income taxes. The Company's weighted average cost of capital is calculated using the methodology from the Final Order including the Company's actual capital structure and long term cost of debt as of the Test Period end (adjusted for any known and measurable changes that have occurred prior to the filing date) and the return on equity from the Final Order. However, in no event will the percentage of equity exceed 55 %. Notwithstanding the preceding sentence, in the event that the Commission issues a final rate order adopting a capital structure for Atmos Energy that exceeds 55% equity, the Signatories agree that the annual RRM filing will reflect the Commission- approved capital structure. Regulatory adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash working capital will be calculated using the lead /lag days approved in the Final Order. With respect to pension and other postemployment benefits, the Company will record a regulatory asset or liability for these costs until the amounts are included in the next annual rate adjustment implemented under this tariff. Each year, the Company's filing under this Rider RRM will clearly state the level of pension and other postemployment benefits recovered in rates. TAX = income tax and taxes other than income tax from the Test Period adjusted for known and measurable changes occurring after the Test Period and before the Filing Date, and prepared consistent with the rate making treatments approved in the Final Order. CD = interest on customer deposits. Exhibit A 51 RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 3 OF 6 52 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION Exhibit A ADJ = Downward adjustment to the overall, System -Wide test year cost of service in the amount of $300,000.00, adjusted by a percentage equal to the total percentage increase in base -rate revenue sought pursuant to this tariff. IV. Annual Rate Adjustment The Company shall provide schedules and work papers supporting the Filing's revenue deficiency /sufficiency calculations using the methodology accepted in the Final Order. The result shall be reflected in the proposed new rates to be established for the effective period. The Revenue Requirement will be apportioned to customer classes consistent with class revenue distribution resulting from the settlement of the statement of intent filed October 18, 2013. For the Residential Class, 50% of the increase may be recovered in the customer charge. The increase to the Residential customer charge shall not exceed $0.50 per month in any given year. The remainder of the Residential Class increase not collected in the customer charge will be recovered in the usage charge. The Company will forgo any change in the Residential customer charge with the first proposed rate adjustment pursuant to this tariff. For all other classes, the change in rates will be apportioned between the customer charge and the usage charge, consistent with the Final Order. Test Period billing determinants shall be adjusted and normalized according to the methodology utilized in the Final Order. V. Filing The Company shall file schedules annually with the regulatory authority having original jurisdiction over the Company's rates on or before the Filing Date that support the proposed rate adjustments. The schedules shall be in the same general format as the cost of service model and relied -upon files upon which the Final Order was based. A proof of rates and a copy of current and proposed tariffs shall also be included with the filing. The filing shall be made in electronic form where practical. The Company's filing shall conform to Minimum Filing Requirements (to be agreed upon by the parties), which will contain a minimum amount of information that will assist the regulatory authority in its review and analysis of the filing. The Company and regulatory authority will endeavor to hold a technical conference regarding the filing within ten (10) calendar days after the Filing Date. The 2014 Filing Date will be December 1, 2014. A sworn statement shall be filed by an Officer of the Company affirming that the filed schedules are in compliance with the provisions of this Rate Review Mechanism and are true and correct to the best of his /her knowledge, information, and belief. No RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 4 OF 6 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION VI. Evaluation Procedures Exhibit A testimony shall be filed, but a brief narrative explanation shall be provided of any changes to corporate structure, accounting methodologies, allocation of common costs, or atypical or non- recurring items included in the filing. The regulatory authority having original jurisdiction over the Company's rates shall review and render a decision on the Company's proposed rate adjustment prior to the Effective Date. The Company shall provide all supplemental information requested to ensure an opportunity for adequate review by the relevant regulatory authority. The Company shall not unilaterally impose any limits upon the provision of supplemental information and such information shall be provided within seven (7) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the proposed rate adjustment into compliance with the provisions of this tariff. The regulatory authority may disallow any net plant investment that is not shown to be prudently incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions of this tariff shall constitute a finding that such net plant investment was prudently incurred. Such finding of prudence shall not be subject to further review in a subsequent RRM or Statement of Intent filing. During the Review Period, the Company and the regulatory authority will work collaboratively and seek agreement on the level of rate adjustments. If, at the end of the Review Period, the Company and the regulatory authority have not reached agreement, the regulatory authority shall take action to modify or deny the proposed rate adjustments. The Company shall have the right to appeal the regulatory authority's action to the Railroad Commission of Texas. Upon the filing of an appeal of the regulatory authority's order relating to an annual RRM filing with the Railroad Commission of Texas, the regulatory authority having original jurisdiction over the Company's rates shall not oppose the implementation of the Company's proposed rates subject to refund, nor will the regulatory authority advocate for the imposition of a third party surety bond by the Company. Any refund shall be limited to and determined based on the resolution of the disputed adjustment(s) in a final, non - appealable order issued in the appeal filed by the Company at the Railroad Commission of Texas. In the event that the regulatory authority and Company agree to a rate adjustment(s) that is different from the adjustment(s) requested in the Company's filing, the Company shall file compliance tariffs consistent with the agreement. No action on the part of the regulatory authority shall be required to allow the rate adjustment(s) to become effective on March 15. To the extent that the regulatory authority does not take action on the Company's RRM filing by March 14, the rates proposed in the Company's filing shall be 53 RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 5 OF 6 54 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION Exhibit A deemed approved effective March 15. (2014 filing RRM rate will be effective March 15, 2015 if no action is taken). Notwithstanding the preceding sentence, a regulatory authority may choose to take affirmative action to approve a rate adjustment under this tariff. In those instances where such approval cannot reasonably occur by March 14, the rates finally approved by the regulatory authority shall be deemed effective as of March 15. To defray the cost, if any, of regulatory authorities conducting a review of the Company's annual RRM filing, the Company shall reimburse the regulatory authorities on a monthly basis for their reasonable expenses incurred upon submission of invoices for such review. Any reimbursement contemplated hereunder shall be deemed a reasonable and necessary operating expense of the Company in the year in which the reimbursement is made. A regulatory authority seeking reimbursement under this provision shall submit its request for reimbursement to the Company no later than May 15 of the year in which the RRM filing is made and the Company shall reimburse regulatory authorities in accordance with this provision on or before June 15 of the year the RRM filing is made. To the extent possible, the provisions of the Final Order shall be applied by the regulatory authority in determining whether to approve or disapprove of Company's proposed rate adjustment. This Rider RRM does not limit the legal rights and duties of a regulatory authority. Nothing herein shall abrogate the jurisdiction of the regulatory authority to initiate a rate proceeding at any time to review whether rates charged are just and reasonable. Similarly, the Company retains its right to utilize the provisions of Texas Utilities Code, Chapter 104, Subchapter C to request a change in rates. The provisions of this Rider RRM are implemented in harmony with the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101 -105). The annual rate adjustment process set forth in this tariff shall remain in effect during the pendency of any Statement of Intent rate filing. VII. Reconsideration, Appeal and Unresolved Items Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under Sections 102.001(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007). RATE SCHEDULE: RRM — Rate Review Mechanism APPLICABLE TO: ALL INCORPORATED CUSTOMERS IN THE WEST TEXAS DIVISION EXCEPT CUSTOMERS IN THE CITIES OF AMARILLO, LUBBOCK, DALHART AND CHANNING. EFFECTIVE DATE: Bills Rendered on and after March 15, 2015 PAGE 6 OF 6 ATMOS ENERGY CORPORATION WEST TEXAS DIVISION VIII. Notice Exhibit A Notice of each annual RRM filing shall be provided by including the notice, in conspicuous form, in the bill of each directly affected customer no later than forty -five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following information: a) a description of the proposed revision of rates and schedules; b) the effect the proposed revision of rates is expected to have on the rates applicable to each customer class and on an average bill for each affected customer; c) the service area or areas in which the proposed rates would apply; d) the date the annual RRM filing was made with the regulatory authority; and e) the Company's address, telephone number and website where information concerning the proposed rate adjustment be obtained. 55 RIDER: SURCHARGE 2013 WTX SOI APPLICABLE TO: ALL INCORPORATED AREAS IN THE WEST TEXAS CITIES SERVICE AREA EFFECTIVE DATE: Bills Rendered on and after 4/01/2014 PAGE: 56 WEST TEXAS DIVISION ATMOS ENERGY CORPORATION Applicability The Rate Case Expense Surcharge (RCE) rate as set forth below is pursuant to Settlement Agreement to the Statement of Intent filed with the municipalities in Atmos Energy's West Texas Division on October 18, 2013. This monthly rate shall apply to the residential, commercial, industrial, and public authority / state institution rate schedules of Atmos Energy Corporation's West Texas Division in the rate areas and amounts noted below. The rate will be in effect for approximately 12 months until all approved and expended rate case expenses are recovered from the applicable customer classes. This rider is subject to all applicable laws and orders, and the Company's rules and regulations on file with the regulatory authority. Rate Schedule: Residential Rate Area WTX Cities Incorporated Monthly Surcharge $ 0.00228 per Ccf Rate Schedule: Commercial Rate Area WTX Cities Incorporated Monthly Surcharge $ 0.00154 per Ccf Rate Schedule: Industrial Rate Area WTX Cities Incorporated Monthly Surcharge $ 0.00175 per Ccf Rate Schedule: Public Authority / State Institution Rate Area WTX Cities Incorporated Monthly Surcharge $ 0.00081 per Ccf OTHER ADJUSTMENTS The above rate schedules shall be adjusted for all applicable taxes (including franchise fees for incorporated customers) related to the above. EXHIBIT A a a a A A A A W W W W W 0 W W W W Na N N N N N N N N N W 01 A W N— 0 CO W V W N W N" 0 CO CO V 0) (n A W N— 0 CO CO V W N A W N 0 N a co N 0) N V N rn U N N O N N 0 N W (0 8 N A V i 0' 0 S � Oo V 0 co 0 V N A Oo 0 N 41 V W 0 N m 0 N f) n z c 03 i m' 3 o 0 @ 3 5 v g 13 _ o . co 0 n N N N W IU V co co v 0 0 OS i+ V CO U A 8 °D N co) N A 9 N W co - N N co W ( 0 0 44 44 N V o N A 03 —t N 0 CO 0 W 0 O N N IN N W co lo e W O V 0 CA CO 0 N 0 01 N 1 44 U 0 o 3 A 7 N 4i c g v c3 g 1 g 7 CORI a m d n 3 A a N N N W O CD W N N W N a is CO 0 0 N CO co (J O1 (71 N N 0 N 0 N A CO 5. W N N 0 1. m W i CO N N (0 W N W CO tD -1 N A co co co 0 N 3 5�m tt et at m j °S a ,§. 8 z m 61 W c W wo 0Q O W A CO V N N 07 CA N O 0) 0 CO 0 A N V W 1. W N -+ N W m 1 O (O W co Fp 0 A — O co W 0 CD Wo CD co 0 W V 0 1O N N O 0 ( N 8 N 0 3 N N 8 O 0 N N N N N N 41 01 0 N A w T N V W N N A W A N co A O O W N m 0 N � W 0 N N A 0 CO A N W 0 A N co ( ((4 N W 5. V -+ N OV 0 N W O 0 A. W N o - 0 CA N t W o (0 O .3 N Na CO 0 W O W V 0) N A W N gg V W E OO V W W OW j 0 pA W CO N O le co (o co os W W N IJ W CO N 0 W 0) N W N W N3 W m D1 V N 0 W W N fJ 80) 07 t0 W 70 0 a c 2. N C) 0 > 0 c m 3 c 0 c c? a a w g 3 3 m 0 ;'o t H c)) N N N O 0 0' N 40 0' C 3W{ � N N g 5 5 ; a ° u = D� w 0 ID bl D 3 r n r 57 58 • o n oD m 0 c o °° m _D w 0 0 i .. w g w- D i' m w 3 5 _. n 51 3 co C n N c v W C 70 Q. 2 c v m < 7 o �S C < . = N T i W (D O t ft �N EL (�Mj 'O 1 g a . ,t) = °g W m , co F. Q 1 3 3 W _ t W A 3 i 0 it 7 N ' c aM w' m g m. O 2 O 3 m a M M 44 H 169 N 2 CO Z N 0) g a g an a V w 01 N M Co 001 CO 00 CO CO V V V V V V V V V V W W W CO CO CA W CO CO CO U U U U U 05 U U 0) U. . A U W N O N CO V CO Cr A W N O CO CO V CO Cr la W N+ O CO CO V Of D A CO N O co CO V O m N W CO CO 10 CD C N O U W — 0) 0))a CO— 01 A — CO V 0 U U N 0) +O .N 3 > rT C O 7 N 08 O O OO V co AA p U N W W 8 I� 4o 44 169 O V CO U ( A 0 P. O V M r O 69 69 N 49 49 A O p co j W 0 Q CO W W V CO C V N W - J 0 0 CO m A 0) CO U 0 N H 44 H H A co -W+ C co A W N V 0)) cn o U Oppp 01 CO N A W cn 0 O) M 69 69 M 0 N W A 4 4) W 0 69 0 a N< v C N CO W P H "4m )O CO 0O w 0) 0 69 CO W W co 69 69 0 A O U A W 0 W A U N at 0 N V CO m U 01 CO CO 44 U O CO 8 N a w 44 ro o W N N A co 69 N 0 44 V O 69 8 40 0 O H U a U O H N 8 0 0. N . O U H tD O U H A O 69 0) A 0) 69 41 m O N co D OD V r N 3 a5 -I 'ft r m 5 V 1 F r n 08 N A W N A O fWD N V W N A W N 0 0 m V O N A N N O f0 m V m 0 A W N -+ O O m V m N A W N s m 0 A V CO N V -4 CA O N W_ c 0 0 (T C N O V N N W N 0 0 n O W O O C N 25g O C i ll 0 C w ° a 7 D a s f a D N a N 3 A c ° n c 3 0 o�c > _ > v rn a 1� > > ; m 7 !" c °� 3 m V A d v n m •O n NC v 0 e,n ET Pm2 it agN2 5g y n 0 0 ca J m ` 3 co a ( X 2 0 8 7 &. a G c 10 co ET A 3 3 m a a m m X1 N pA V V O V 0 V N O O O m 64 to A CO CO co p m (A N A co O N J 0 CO 0 CJ w S m co fA ✓ N CA - CA NJ - 14 A 0 co 0 S w N ? 0 m CO W WO M O 63 CO W ) 0 m 0 0 d4 co w V 0) W O 8 44 NA OW O W 0- CA V O N W W A O N NP m CO NJ N m (A A 0) A w m co N A A) C A O N O CO CO 4, A V Ol m W 44 V (O 0 .+ V m CO m N S 0) w 5 2 - 55 V C s s N O L 8 8 a l iV m 1. ( N N I- 0) a O m W 1); N " ▪ CO w W -"' W O N CO U O S ( 0 m CA O O co co S - W A S 0 O V O V N N S W m O A N )D O �, 100 co m A O N N O V W 0 R A CO 01 V N W b O mm 69 CO u1 69 N O) N m m N m 4A 0 m CA ta m CO f0 m va VN J4 =+ V OW ▪ J. U w - N gS 0 w A - m O NA c A co N O N A - A O V CO W 8 0 w WV 0 OW O N CA A m co W O 4 O1 V — N O A O - x 3 A `J O ( T C a l 3 4. -4 0 0) ) N O r m y -(-111. 3 m 03 -+gi 0j c ocf� mT m V r x >100Z < rn al ifi W M )0 2AMO 01 zzoo 10 V V O CA Cn 0 0 r N w V A l co ww N O CT 0 V b.f.) CO 0 mm CA N mm o F 0 0' r Q 0 ✓ 59 60 fA 3 0 N 0( O N N O tl 64 0) a N CA N (0 W IN N pA� CO 1 N CA �A W 44 O Np I O V fA N 0) O V CA a 1 a m a 8 a N A W N 0 O CO CO V W N A CA N 0 CO W V 0 in 64 N rn V w EA ( EA 8 V cn (0 44 rn 4, N N V in A CA N 03 N W N 03 O 0 A m EA a A O -co m V 03 4A 4A 00 V W CO v m (c; E W w iA g O� CO a N A H N U W N 0 W + N ( O CO V V CO CA o m w V ao 0 0) (.3 V 03 N CA W 0 O m n C N 0) 0 co 51' W 0 W CD O V + A N O V W N O N co on 8 A O OOi W -• 0 0 V N o V 0 w a ° v u i N N N (n V 0 0) 0 c a m W M 4A 4' A 0 44 K - cu co in sn V 30 in 0 0) CO g g Co) K � N g 0 0) 0 0 N CO CT `-" 0) w 0 0 - ( co o J 00) 0 + 0 V1 W V t0 CO o C/3 5 a r; �, a 4 455 R m r x W N m V q Ca d w r zC O g 1 R r EXHIBIT C Factors Required by Section 104.301 of the Gas Utility Regulatory Act • The net invested capital amount of $402,630,670 shall be used as the baseline investment for use in calculating the first interim rate adjustment ( "IRA ") adjustment following the issuance of an Ordinance approving new rates pursuant to the Settlement Agreement referencing this Exhibit C. • The overall depreciation rate shall be calculated based on the West Texas Division direct depreciation rates approved in GUD 10041 and the SSU Depreciation rates approved in GUD 10170. • A federal income tax factor of 35 %; • Ad Valorem Tax of $4,133,461 divided by the net invested capital of $402,630,670 for an Ad Valorem tax rate of 1.03 %. • The average use per month per customer class in order to determine the current and proposed bill information in future IRA filings is as follows: Residential at 52.69 Ccf, Commercial at 239.72 Ccf, Industrial at 3,950.03 Ccf, and Public Authority at 809.72 Ccf; and • The base rate revenue allocation factors to be used to calculate the cost of changes in investment to be recovered from the appropriate customer classes are as follows: Residential at 75.13 %, Commercial at 18.39 %, Industrial at 2.16 %, and Public Authority at 4.32 %. • The overall return shall be the same as approved by the Railroad Commission of Texas in the Final Order for GUD 10170. 61 62 0 ■ w k ■ ZO CU Z §Z §b2k Z 44 m Ow - m uI- -I -5 01- w0- _mo © ■ 1 w § §§( W§w CO ■§ a. a § 2 S 0 & • 0 \ƒ A @@ K oq C 8A $ $ + CO CO RV 4 coa k§ - - co _ / co m CO _ 8 0 \ \ ( k 3 C4 _ \ § / - 0 k / R 03 � _ 8 0 § U § csi 4 (.; k $ � _ _ co _ § (0 - o k - / \ ( _ k k - K n 2 - a) •0 a) 0 E o J / o 7 / > ) w E E o © $ e - § , . ce r \ - 0. 2 ) \ { $f Lu 0.5 0 Ec ae <E E § e§§ , § L 8e =. § E 000c a. c N 2� �23 § R d)) m § » » a o � (n _141 o1,00o4-NnVIOcN000 -4Q4tmm O r- :.. O v.. N ' Q O r Cj Op if W m cV _ N C Del C N rn °a f0 L - 1 Q �� C 3 C O ON O 0) O 7 r�M to N v_e - rI M ' CC a to ~ p F- .. O ri tfi (o cc o CO. M Ui NI N CO ->. N • �J d fil OO tO� OO r N e - CAIN U) e- N C F" Q e - O r... to Tr M N r N It G. N `- `° e- e 1 E E it 5 IU ( "- m C -v c E o Z N� v ft F- W d d - m m �>p, O Cy 1 • N 3 Z W U N LL N r W O C O H• 0 7 E c _ 5 y a c P: 0: W N :0 T tp O .. �Z W�M Q at u)E.a.c O W W OW E1- co O r m � a. 2 to W Z c r- r- r- r- r- 0.- r∎ r.- r� r.- C 0,3 o m 4 + a Cl W O I-_? M M M M M M M M M M O a+ N O 00 CO 00 00 qp a0 CO 00 00 00 0. N t9 C N O t0 x ) 0. 1 rnm a� C 0. 4) O 0 C o C CO y U) a p 0 CO to 41 y c 0 Y • I �M - CO d 1� MtntD ca o 411 X 4)Z y0 N OD CO V' N a C) r` to M 0 O (C E O = 1 e - e- w 06 N • D . C.) O 4) ,O O 1 > co x en al t o •.O d E W 41 O w 1 O z N LLI tp a U- O •t3 N U O t0 m y cQ- .c • U O y W O C E L co O Z ER E a ) >.OW cos a NC O O O C O V 41 CL C MTr tOCOI�00 c 4 • • ) V O= V) 41 • 0 0 0 0 0 0 0 0 0 0 0 l0 y NNNNNNNNNC4CV 4) to 4) C>< 4) a 4J , 0 0) I-- o o I O- F- H > 0. Z .- N M co e - N 01 Tr U) co n co to O e- N M It U) (O r■ 00 CA O e N M Tr U) (O t` CO N N N N N N N N N 63 64 - 1. Abernathy 2. Amherst 3. Anton 4. Big Spring 5. Bovina 6. Brownfield 7. Buffalo Springs Lake 8. Canyon 9. Coahoma 10. Crosbyton 11. Dimmitt 12. Earth 13. Edmonson 14. Floydada 15. Forsan 16. Friona 17. Fritch 18. Hale Center 19. Happy 20. Hart 21. Hereford 22. Idalou 23. Kress 24. Lake Tanglewood 25. Lamesa 26. Levelland 27. Littlefield 28. Lockney 29. Lorenzo 30. Los Ybanez 31. Meadow Incorporated Cities Served by the WTX- Cities Rate Division Exhibit E 32. Midland 33. Muleshoe 34. Nazareth 35. New Deal 36. New Home 37. Odessa 38. O'Donnell 39. Olton 40. Opdyke 41. Palisades 42. Pampa 43. Panhandle 44. Petersburg 45. Plainview 46. Post 47. Quitaque 48. Rails 49. Ransom Canyon 50. Ropesville 51. Sanford 52. Seagraves 53. Seminole 54. Shallowater 55. Silverton 56. Slaton 57. Smyer 58. Springlake 59. Stanton 60. Sudan 61. Tahoka 62. Timbercreek Canyon 63. Tulia 64. Turkey 65. Vega 66. Wellman 67. Wilson 68. Wolfforth Incorporated Cities Served by the WTX- Cities Rate Division Exhibit E 65 66 Atmos Energy Corp., West -Tex System Test Year Ending June 30, 2013 Baseload and Heat Sensitivity Factors for WNA billing Weather Zone Baseload Residential Amarillo 20,155,155 Lubbock 19,701,788 Midland 12,821,859 Commercial Amarillo 9,917,438 Lubbock 10,633,279 Midland 10,597,749 Public Authority / State Aoencv Amarillo 1,876,066 Lubbock 1,140,453 Midland 2,926,097 Annual Baseload per Customer 216.64 188.75 173.76 1,211.03 1,142.43 1,583.76 3,561 1,530 4,878 • City references are to weather zones not rate divisions. Monthly Baseload per Customer for WNA Normalized Normalized Volumes per Average Volumes Ccf Customer Customers Normal HDD 18.05 72,120,563 775.19 93,036 3,897 15.73 62,103,916 594.98 104,379 3,132 14.48 40,062,040 542.90 73,793 2,503 100.92 28,022,844 3,421.91 8,189 3,897 95.20 23,318,552 2,505.33 9,308 3,132 131.98 20,815,603 3,110.75 6,692 2,503 297 6,755,200 12,822.27 527 3,897 128 4,645,834 6,233.93 745 3,132 406 7,505,295 12,510.56 600 2,503 Exhibit F HSF 0.1433 0.1297 0.1475 0.5673 0.4352 0.6101 2.3765 1.5018 3.0496 2/25/20143:55 PM 1 of 1