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HomeMy WebLinkAboutOrdinances (O-08-1694)-09/16/2008ORDINANCE 0-08-1694 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS, ("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE (ACSC) AND ATMOS ENERGY CORPORATION, MID-TEX DIVISION ("ATMOS MID-TEX" OR "THE COMPANY") REGARDING THE COMPANY'S RATE REVIEW MECHANISM FILING 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 ATTACHED TARIFFS TO BE JUST AND REASONABLE; APPROVING ATMOS' PROOF OF REVENUES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Colleyville, Texas ("City") is a gas utility customer of Atmos Energy Corporation, Mid-Tex Division ("Atmos Mid-Tex" or "the Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of more than 150 similarly situated cities served by Atmos Mid- Tex that have joined together to facilitate the review and response to natural gas issues affecting rates charged in the Atmos Mid-Tex service area (such participating cities are referred to herein as "ACSC Cities"); and WHEREAS, Atmos and ACSC Cities have been in continuing disagreement, dispute and litigation over the implementation of GRIP surcharges pursuant to Section 104.301 of the Texas Utilities Code; and WHEREAS, as part of the negotiations to resolve Atmos' 2007 rate case, ACSC Cities and the Company worked collaboratively to develop the Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process controlled by ACSC Cities as a substitute to the current GRIP process instituted by the Legislature; and WHEREAS, the City took action earlier this year to approve a Settlement Agreement with Atmos Mid-Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff; and WHEREAS, on or about April 14, 2008, Atmos Mid-Tex filed with the City its first application pursuant to the RRM tariff to increase natural gas rates by approximately $33.5 million, such increase to be effective in every Ordinance 0-08-1694 Page 2 of 4 municipality that has adopted the RRM tariff within its Mid-Tex Division; and WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a Negotiation Committee made up of ACSC representatives and assisted by ACSC attorneys and consultants to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed; and WHEREAS, independent analysis by ACSC's rate expert concluded that Atmos is able to justify a rate increase of $19.8 million; and WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and consultants, recommends ACSC members approve the attached rate tariffs ("Attachment A" to this Ordinance) that will increase the Company's revenue requirement by $20 million; and WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues ("Attachment B" to this Ordinance) are consistent with the negotiated resolution reached by ACSC Cities (including but not limited to a reduction of the residential customer monthly charge to $7.00 per month) and are just, reasonable and in the public interest; and WHEREAS, it is the intention of the parties that ACSC Cities receive the benefit of any Settlement Agreement that Atmos enters into with other entities arising out of its RRM or any associated appeals of a decision entered by the Railroad Commission regarding the Company's request to increase rates. The ACSC Cities' acknowledge that the exercise of this right is conditioned upon the ACSC Cities' acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto; and WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting rates are, as a whole, in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. Sec.2 THAT the findings set forth in this Ordinance are hereby in all things approved. THAT the City Council finds that the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable and new tariffs and Atmos' Ordinance 0-08-1694 Page 3 of 4 proof of revenues, which are attached hereto and incorporated herein as Attachments A and B, are just and reasonable and are hereby adopted. Sec. 3. THAT to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Sec. 4. 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. Sec. 5. 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. Sec. 6. THAT if ACSC Cities determine any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in Atmos' RRM filing would be more beneficial to the ACSC Cities than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the ACSC Cities. Exercise of this right is conditioned upon ACSC Cities' acceptance of all rates, revenues, terms and conditions of any other Settlement Agreement or associated appeals arising out of the Company's RRM filing in toto. Sec. 7. THAT this Ordinance shall become effective from and after its passage with rates authorized by attached Tariffs to be effective for customer bills delivered on or after October 1, 2008. Sec. 8. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of David Park, Vice President Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. AND IT IS SO ORDERED. The first reading and public hearing being conducted on the _ c~'yOe" day of 1eJr~ 2008. The second reading and ~pu lic hearing being conducted on the /lo ~ day of ~~.~.,p ~/Y~-~Lre/t,../ 2008. Ordinance 0-08-1694 Page 4 of 4 ATTEST: ~~ Cynthia Singleton, TRMC, CMC City Secretary APPROVED AS TO FORM AND LEGALITY: CITY OF COLLEYVILLE ~c David Kelly Mayor ~ ~~ Matthew C. G. Boyle City Attorney ATTACHMENT A ATMt?S ENERGY GGRPCIRATION MtG~-TEX DIVISION F3RC TARIFF NO: 19843 REVISION Nis 0 RATE SCHEDULE: R -RESIDENTIAL SALES APPLICABLE 1'O: Entire Division (except Environs areas and the Gity of Dallas) EFFECTIVE DATE: 10101!2008 PAGE: 23 Applicai:ion Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through ane 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 Custorner and Mcf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 7.00 per month Commodity Charge -All Mcf $2.2410 per Mcf 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. Rate Revieva Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance vdith hider l'AX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreertient 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 ~I~arifl for Gas Service. Issued 13y: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 0£3/13/200£3 ATTACHMENT A ATMOS ENERGY CORPfJRA71~N MIQ-TEX bIVISIOf~f RRC TARIFF hfC}: 19844 REV{SICJtJ NOt 0 RATE. SCNGDULE: C - GOMfr<fERCIAL SALES APPLICABLE TO:: Entire Division. (except Environs. areas .and fhe City of Dal(asj EFFECI"fVE DATE:. ` 10/01/2008 PAGE: 24 _--- - 1~----- ---- Appficatian .Applicable 'to Commercial Customers for all. natural .gas provided atone Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf. Type og Serviee Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements betveen Company and Customer may be required prior to servicebeny furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 13.50 per month Commodity Charge -All Mcf $ 0.9809 per Mcf 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. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise Fee Adjustment: Ptus an amount for franchise fees calculated in accordance with Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. 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 Ayreement 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. Issued By: David J Park Vice 1='resident, hates and Regulatory Affairs Date Issued: 08!13/2008 ATTACHMENT A /~TMOS ENERGY CQRPURATtON MID-TEX DIVISION RRC TARIFF NU: 19842 REVISION NO: 0 RATE SCHEDULE: APPLICABLE TO: t - INDUSTRIAL SALES Entire Division (except Environs areas and the pity of Dallas) _~_~ EFFECTIVE. DATE: ---- 10101!2008 I PAGE: 25 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 ofi Delivery and measured through one meter. Service for lndustryal Customers with an MDU equal to or .greater than 3,500 MMBtu per day wiN be provided at Company's sole option and will require special .contract arrangements between Company and Customer. Type of Service Where service of tt~e 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. fthonth{y Rate Customer's monthly bill will be calculated, by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Meter ~ 423.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.2733 per MMBtu Next 3,500 MMBtu $ 0:1993 per MMBtu All MMBtu over5,000 MMBtu S 0.0427 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. Rate Review Mechanism: Commodity Charge includes an amount calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance vrith Rider FF. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. l'ax 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 OverpuH 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 Suivey." Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ~r ATTACHMENT A ATIVI(}S ENERGY CdRPQ1~ATIGhI MID-TEX Dt1/fS'IDN RRC TARIFF NQ: '19842 REVtsIaN NO: o (RATE. SCHEDULE: I ~ ~ t- INDUSTRIAL SALES ARPLtCABLE TO: Erttit•e Division (except Environs areas and the City of:Dallas) EFFECTIVE DATE: 1010'1l200ti ~ RAGE: 26 Replacement Index In the event the "midpoint" or "common:" price for tine Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees .utilizing a daily price index recognized as authoritative- by the natural gas industry and most closely approximating the applicable index. Agreement An Agreement fdr Gas Service may be required. .Notice Service hereunder and the rates for services pro~iided are sub}ect 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. Issued By: David J. Park Vice President, Rates and Regulatory /affairs Date Issued: 08!13!2.008 ,~ ATTACHMENT A ATMOS ENERGY GC}RPORATiON Mla-TEX D(VIS(ON t2RC TARIFF NQ: 19845 REVISION NO: Q RATE SCHEDULE T -- Tt2ANSPORTATfON APPLICABLE TO`. Entire division {except Environs areas and the Gity of Dal(as) EFFECTIVE GATE: ~ 10/01/2008 ~ f'AGE:'27 Application Applicable, in the event that Company f7as 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 alf natural .gas supplied by Customer or Customer's agent at one- Point of Delivery for use in Customer's. facility. Type of Service 1Nhere service of the type desired by Customer is not already available at the Point of Delivery, additionaC charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will tie calculated by adding the following Customer and MMt3tu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ G25.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.2733 per MMBtu Next 3,500 MA~tBtu 5 0.4993 per MMBtu All MMBtu over 5,000 MMBtu $ O.On27 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part (h) of Rider GCR. Rate Ileviev/ Mechanism: Commodity Charge includes an arrrount calculated in accordance with Rider RRM. 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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. 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 vdith multiple Transportation Agreer~~ents for the purposes of such fees. Issued t3y: David J. Park Vice President, Rates and Regulatory Affairs bate Issued: OF3/13/200f3 ATTACHMENT A ATMQS ENERGY CORF'C7RP.TIUN RF2G 'ARtFF NO: 1:9845 tUl[D-TAX DIVISION t2EV(SfQN ND: 0 RATE SCHEDULE: ~ T - TRANSf~QRTATIC~N APPLICABLE TO: ~ Entire Division. (except Environs areas and the City :of Dallas) I EFFECTIVE DATE: f 101Q1l2008 i PAGE: 28 Monthly Imhalance Fees Customer shall pay. Company the greater of (i) $0.10 per MMBtu, ar (ii) 150% of the difference. per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" during such month, fior the MlviBtu 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. Curtailment Overpull' Fee Upon notification b~,r Company of an even of cuitailment or interru;tion of Customers :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 Pl~rtts Gas Daily in the table entitled "Daily Price Survey" is no longer p~rblished, 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. Issued By: David J. Parl< Vice President, Rates and Regulatory Affairs Date Issued: 08!13/2008 ATTACHMENT A _. ATMCIS `ENERGY COI2PORATtQN MID-TEX DIVISION REVISIaN No: o 1 RIDER: GCR -- GA5 ct3ST RECOVERY APPLICABLE TO: 'Entire Division --. ._ --- EFFEGTIVE DATE: 10/01/2008 I PAGE: 4U r Applicable to Rate R, Rate C, and'Rate I for all gas sales made by Company, and applicable to Rate R, Rate C, F2ate I, and Rate T forrecovery of Pipeline System costs. The total gas cost recovery amount due is determined by adding the gas cost calculated in Section (a) belovr and the pipeline cost calculated in Section (bj below: The amount due forgas cost (Section (aj) is determined by multiplying the Gas Cost Recovery Factor (GCRF) by the Customer's monthly volume. For Customers .receiving service under Rate R and Rate G, monthly volume. will be calculated on a Mcf basis. For Customers receiving service under Rate f, munthly'volume will be calculated an an MM8tu basis and the quantities will be adjusted as necessary to recover actual gas. costs. The amount due for pipeline cost (Section {b)) is deterrnined by multiplying the Pipeline Cost Factor (PCFj by the Customer's monthly volume. For Customers receiving service under.Rate R and Rate C, monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate 1 and Rate '(, monthly volume will be calculated on an MM13tu basis and the quantities will be adjusted as necessary to recover actual gas costs. (aj Gas Gost Method of Ca culation The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF), as determined with the following formula: GCRF =Estimated Gas Cost Factor (EGCF} + Reconciliation Factor (RF} + Taxes (TXS) EGCF = Estirttated cost of gas, includinglost and unaccounted for gas attributed to residential, commercial, and industrial sales, and any reconciliation balance of unrecovered gas costs, divided by the estimated total residential, commercial, and industrial sales. lost and unaccounted for gas is limited to 5%. RF =Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of interest over the. preceding tvrelve-month period ended June 30 and the Actual Gas Cost E3illed over that same twelve-montft period by the estimated total residential, commercial, and industrial sales for the succeeding October through June billing rttonths. The interest rate to be used is the annual interest rate published by the PUC every December. The interest rate of 2008 is 4.G9%. Actual Gas Cost Incurred =The sum of the costs booked in Atmos Energy Corp., Mid-Tex Division account numbers 800 through 813 and 858 of the FERC Uniform System of Accounts, including the net impact of injecting and withdrawing gas front storage. Also includes a credit or debit for any out-of-period adjustments or unusual or nonrecurring costs typically considered gas costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees. Actual Gas Cost Billed =EGCF= multiplied by the rttonthly volumes billed to Residential, Commercial and Industrial Sales customers, less the total amount of gas cost determined to have been uncollectible and written off which remain unpaid for each month of the reconciliation period. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATTACHMENT A ATN1OS ENERGY CORPQRAT(ON MID-TEX DIVISION REV(SIQN N~: 0 i R(DER: ~ GGR -GAS COST RECOVERY APP!_ICABLE TO: ~ Entire t7ivis(orz ------ I 'EFFECTIVE DATE: 10!0112008 PAGE.: 41 Any amount remaining in the reconciliation balance afterthe conclusion of the period of amort(zation will be maintained in the reconciliation balance and included in the collection ofthe next RF" Atmos Energy shall file annual reports vrith the Commission, providing by month the following amounts: Gas Cost Written t7ff. Margin Written Off, Tax and Other Written Off; Total Written Off, Gas Cosf Collected and Margin Collected. TXS =Any-statutorily imposed assessments or taxes applicable to-the ~ixchase of gas divided by the estimated total residential, commercial, and industrial sales. ADJ =Any surcharge or refund ordered bya regulatory authority, inclusive. of interest, divided by the estimated total residential, commercial, and industrial sales is to be included as a separate line item surcharge. (b) Pipeline Cost Method of Calculation Each month, a Pipeline Cost Factor (PCF) is calculated separately for each. Pipeline Cost Rate Class listed below- 1"he formula for the PCF is: PCF = PP / S, tivhere: PP = (P - A) x D, where: P =Estimated monthly cost of pipeline service calculated pursuant to Rate CGS D =Pipeline service allocation factor for the rate class as approved in the Company's most. recent rate case, as follows: Pipeline Cost Rate Class _ _ `____j_ Allocation "Factor__iD~__1 Rate R -Residential Service '? .6346`3£3 Rate C -Commercial Service (.302821 Rate I -Industrial Service and tZate "(" -Transportation Service ~ _Of~2478 ____ __ A=Adjustment applied in the current. month to correct for the difference between the actual and estimated pipeline cost revenue of the second preceding month, calculated by the formula: A = R - (C - A2), where: R =Actual revenue received from the application of the PP component in the second preceding month. C =Actual pipeline costs for the second preceding month. A2 =The adjustment (A) applied to the PP component in the second preceding month. Issued t3y: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/13/2008 ATTACHMENT A ATMQS ENERGY COEZPC~RATI~~! MtD-1`EX QtUIS1Ght REVISION NQ:O Rtf)Ef2: GCR -GAS COST F2CCOVERY APRLICABCE TO:: ;Entire I]ivision EFFECTIVE Qt~TE: ~ '(0(01/2008 PAGE'::42 _ -_: --- S =Estimated Mcf or MM'Btu for the rate class for the current billing month. The PCF is calculated to'the near~sf 0.0001 cent. The Pipeline Cost to be billed is determined. uy multiplying the Mcf or MMBtu used by the appropriate PCF. The Pipeline Cost is determined to the nearest wholecent. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date issued: 08!13/2008 ATTACHMENT A ATMOS ENERGY C~RPCIRATION n~ro-TEX atvtsl©N REVISrQN No: o RIdER: GEE -- CUNSERVATI©N 8~ ENEf"ZGY EFt=1GtENCY APPLICABLE TO: I Entire Division ' i EFFECTIVE BATE: 'i0/t31t2d0H PAGES 5$ 'Purpose Atmos Energy Mid-Tex is proposing to institute a complete Conservation & Energy Efficiency program which. will offer assistance to qualified customer segments. in reducing energy consumption and lowering energy utility bills. The proposal is one where Atmos Energy shareholders wilt -fund a percentage of the allowable ex. penses incurred arinraally, with a customer rate component providing the remainder of the funding. Following: is ahigh-level, concept summary of the proposal. Atmos Energy Mid-Tex Division proposes. to work with the communities it serves to develop the details of a new tariff and programs addressing conservation and energy efficiency. Synopsis: Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos Mid-Tex. Qualified. Customers will receive up to two hundred dollars ($2.00.00) worth of caulking, weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving devices such as clock-thermostats, set-back devices ("covered items") from approved suppliers /retailers. Company will undertake efforts. to enlist support from community groups, including its own Employee Action Program, to assist customers with installation. If it is determined #hat professional installation capabilities are necessary, the parties will agree on labor assistance amounts. Eli. ibili Low Income -Low-income rate-payers that qualify for heating bill assistance through LIHEAP agencies and ap agencies that distribute Atmos "Share the Warmth" funds. Agencies that allocate assistance funds denote customer as Low Income, a status that lasts for one year. Senior Citizen -Primary account holder can request eligibility through ATM call center or web-site. Customer provides primary SSN which is verified through Social Security Administration. And account fiolder that is orturns 65 years old in that year becomes eligible. (=undinq Initial program funding wip be at two million dollars (S2,000,000). Atmos Energy shareholders will contribute one. million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one million dollars 01,000,000.00) per year. It is proposed that the program operate on an October 1 through September 30 year, with benefits being capped at the two million dollar level for the initial program period. Administration A third-party administrator will coordinate qualification of customers, voucher distribution, subsequent verification and reimbursement of eligible expenditures and general progrart~ administration. Program administration expenses will be funded from the annual approved budget. Audits will be provided all interested parties within 120 days of the end of each program year to deterrT~ine effectiveness. Issued By: David J. Park Vice President, Rates and f~egulatory Affairs Date Issued: 08/13!2008 ATTACHMENT A ATM(75 ENERGY GC3RPQRATIpN MID TEX DIVISION REl~E51QP1 NU: t) RIDER: GEE - C©l~SERiJATION & ENERGY EFFIGIENGY APPLICABLE TD: Entire Division EFFECTIVE DATE: 1Q/0'[!20()£3 PAGE: 59 RepOft Atmos shall file an annual report. detailing cost to administer fhe program with details. ofthe amounts paid out of program for energy conversation assistance. The report shall also.-detail number of applicants, number rejected and accepted and reason rejected. The report shalt be filed with the Gas Service Director. Issued By: David J. Parl< Vice President, Rates and Regulatory /affairs Date Issued: OE3/13/200E3 ATTACHMENT A Al'MUS ENERGY GQRF'ORATIC)N .MID-TEX DIViS10N REVISI(QN NO: 0 RIDER: FF -- FRANCHISE FEE ADJUSTMEPlT ------ APPLICABLE 70: Entire Division ,. ~ EFFECTIVE DATE: I 10!01!2008 ' PAGE': 43 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 #o.Customer. Franchise fees to be assessed solely to customers within the municipal. limits. This does not apply to Environs customers. Monthly Adjustmt:nt Company wilt 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 wiN 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. Issued By: David J. Park Vice President, Rates and Regulatory Affairs Date Issued: 08/1312008 ATTACHMENT A TAF21t=F FOR GAS SERVtGE A~`tVtOS ENERGY CORP., M!D-TEX D(VtSIdN R{t7ER: Rider WNA -1Neather Normalization Adjustment APRL[GABi~E TO: Entire System{except Environs areas and the City of Dallas) REVlSItJN: DATE: EFFEGTlVE DATE: 1110112x08 RAGE: 1 OF 2 'RIDER WNA -- U!/eather NorrnaEization Adiustrnen~ Provisions for Adjustment The base- rate per Mcf {1,000,:000 Btu) for gas service set forth in any Rate Schedules utilized by he cities of the- :Mid-Tex Division. service area for determining normalized- wn~ter period revenues shalt be adjusted by an amount hereinafter described, which amount is refen-ed to as the "Weather Normalization Adjustment." Tl~e Weather Normalization Adjustment shall apply to all temperature sensitive residential,. and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin. Dallas, Waco, and Wichita Falls:. Com utation of Weather Normalization Ad~ustment The Weather Normalization Adjustment Factor shall be computed to the nearesfone-f~undredth cent per Mcf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri (QLi + (HSFi x ADD) ) Where - any particular Rate Schedule or billing classification vrithin any such particular Rate Schedr~le that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Mcf Ri -- base rate of temperature sensitive sales for the ith schedule or classification approved by the entity exercising original jurisdiction. HSFi = heat: sensitive factor for the ith schedule or classification calculated as the slope of the linear regression of average sales per bill (Mcf) and actual 17eating degree days by r~~onth for the test year by schedule or classification and weather station as part of the RRM filing. 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. 61i = base load sales for the itf~ schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as' WNA; = WNAF; x q;, 1'ARlfE FQF2 GAS SERVICE ATTACHMENT A ATMt?S ENERGY Ct'3RF'., Nil[)-TEX DtVlS{t'?tU RATESCHEDl1LE: Rate WNA - UUeather IVorrna{ization Adjustment APPL{CABLE TC7: Entire. System (except: Environs areas and t{ae City of Daflas) REV{SION DATE: EFFECTIVE DATE: 11/01/2008 PAGE: 2 QF 2 Where q;, is the relevant sales quantity for the jth customer in ith rate schedule. Filings with Entities Exercising Original Jurisdiction As part of its annual RRM filing the Companywill file (a) a copy of each computation of the Weather ,Normalization Adjustment Factor, (b) a schedule showing-,the effective date of each such Weather Normalization Adjustment, (c) a schedule showing. the facfors of values-:used in calculating such 'Weather Normalization Adjustment and (d) a random sample. and audit of thirty (30) actual customer bills, with customer information deleted, for each rate schedule or classification. to vrhich the WNA was applied in tt~e preceding 12 month .period. To the extent. that source data is needed to audit the WNA application, such data will be provided by the Company as part of the annual RRM filing. if the RRM is discontinued, as provided in the Rider RRM tarift, the in#ormation required herein. to be filed vrith the entities exercising original jurisdiction. shalf qe filed on March 1 of eaci~ year. Base Use/Heat Sensitivity (HSF) Factors Residential Commercial Base use HSF Base use HSF _ ______ Weather Station Mcf Mcf/HDD __ _ _Mcf_ _ Mcf(HDD Abilene 1.27 ~ .0130 ~ __ __ 10.93 .0638 Austin 1.29 ~ .0133 j 18.47 ~ .0641 Dallas ~ 1.79 ~ .0186 ~ 20.83 1 .0878 Waro i .30 ~ .014.1 11.41 j .0617 Wichita 1.35 .0143 I 11.62 { .0540 Falls I I, Sample WNAFr Calculation: (.0'131 x (30-17) ) .1533 per Mcf = 1.2267 x (1.14 i- (.01.31 x 17) Where i = Residential Single Block Rate Schedule Ri = 1.2267 per MCF .(Rate R -Final Order GUD No. 9670) HSFi = .0131 (Residential -Abilene Area) NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area - 9/15/06 - 10/14106) ADD - 17 I-iDD (Actual HDD for Abilene Area - 9!15!06 - - 10114/06) Bl.i ~ 1.14 Mcf (Residential -Abilene Area) r~ ATTACHMENT B AT(1AOS ENERGY C(ORP., N(tD-TEX DIVis(ON SUMMARY PROF QF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 Description Total Reference (a) (b) (c) Rate R 1 Rate Characteristics: RRM' Settlement .Agreement, 2 Customer Charge $7.00 Pg 2, item 5 3 4 Consumption Charge. ($/Mcf) X2.1600 Settlement Allocation 5 2007 RRM True-up ($/Mcf) $0.0810 Settlement Allocation 6 Rider GCR Part A $8._1244 Schedule H 7 Rider GCR Part B $0:6243 Sr..hedule I 8 9 Billing lJnits (1 ): 10 Bills 17,OG9,G l9 WP J-1.1 11 Total MCF 78,708,921 wP_J-1.1 12 13 Proposed Revenue: 14 Customer Charge ~ 119,487,753 15 Consumption Charge 176,385,175 16 Base Revenue $ 2~J5,872,928 17 Rider GCR. Part A 639,460,135 18 Rider GCR Past B 49,140,231 19 Subtotal $ 984,473,295 20 Revenue Related Taxes 59,244,614 j 1 l 2 Total Proposed Revenue- F2ate R ~ 1,043,7'17,909 3 4 Note 1: See Billing Determinants Study for details. ATTACHMENT B ATMOS ENERGY CORP., MID-TEX DIVISL4N SUMMARY PROOF OF REVENUE AT PROPOSED RATES TEST YEAR ENDING DECEMBER 31, 2007 L'me Description Tofia! Reference Rate C 1 Rate Characteristics: RRM Settlement Agreement, 2 Customer Charge $13.50 Pg 2, Item 5 3 4 Consumption Charge ($/Mcf) $0.9442 Settlement Allocation 5 2007 RRM True-up ($/Mcf) $0:0367 Settlement Allocation 6 Rider GCR Part A $8.1244 Schedule H 7 Rider GCR Part B $0:5228 Schedule I 8 9 Billing Units (1): 10 Bills 1,434,516 WP_J-12 11 Tata! MCF 50,233,642 WP_J-1.2 12 13 Proposed Revenue: 14 Customer Charge $ 19,365,966 15 Consumption Charge 49,273,373 16 Base Revenue $ 68,639,339 17 Rider GCR Part A 408,116,524 18 Rider GCR Part B 26,261,046 19 Subtotal $ 503,016,909 20 Revenue Related Taxes 30,271,052 21 22 l"otal Proposed Revenue- Rate C ~ 533,287,962 23 24 Note 1: See Billing Determinants Study for details ATTACHMENT B ATtVIOS ENERGY CORP.,. i~tt7 TEX ©IV151ON 5UMM~iRY PROOF OF REVENUE. AT PftOPOSEQ RATES TEST YEAR. EN©ING [?ECEtV181rR 31, 2007 ~inE (a) Rate t &T 1 2 3 4 5 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2G 27 28 29 30 31 32 33 34 35 3G 37 38 39 40 41 Rate Characteristics: Total Reference Customer Charge $ 425.00 Settlement Allocation Block 1 ($/MMBTU) $0.235:2 Settlemenk Allocation Block 2 ($/MMBTU) $0.1715 Settlern~ntAllocation Block 3 ($/MMBTU} $0:0367 Settlement Allocation 2007 RRM True-up {$/MMBTU}: Settlement Allocation Block 1 {$/MMBTU) $.0.0381: Block 2 ($/MMBTU) $0.0278 Block 3 ($/MMBTU) $0.0060 Rider GCR Part A $8.1244 Schedule H Rider GCR Part B $0.2938 Sd}edule I Consumption Characteristics: Black 1 (First 1,500 MMBTU) 0.23502 (1) Block 2 (Next 3,500 MMBTU) Q26655 (1) Block 3 (Over 5,000 MMBTU) 0.49843 (1) Billing Units (1 ): Bills 10,052 wP_J-1 Block 1 9,522,217 WP_J-1 Bloch 2 10,799,921 WP_J-1 Block 3 20,1cJ5,218 WP_J-1 'total MMBTU 40,517,356 Sales Volumes 2,331,063 WP_J-1 Proposed Revenue: Customer Charge Block 1 Block 2 Blocl< 3 Base Revenue Rider GCR Pact A Rider GCR Part B Subtotal Revenue Related Taxes $ 4,272,100 2,602,422 2,152,424 862,336 $ 9,889,282 18,494,542 11,902,411 ~ ~ --- 40,286,235 . 2,424,385 Total Proposed Revenue- Rate ITT $ 42,710,620 Note 1: See Billing Determinants Study for details.