HomeMy WebLinkAboutOrdinance No. 16-010 Atmos SettlementORDINANCE NO. 16/010
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS, APPROVING A NEGOTIATED
SETTLEMENT BETWEEN THE A TMOS CITIES STEERING
COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2016 RATE REVIEW
MECHANISM FILINGS; DECLARING EXISTING RATES TO BE
UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE
ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED
SETTLEMENT; FINDING THE RATES TO BE SET BY THE
SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND
IN THE PUBLIC INTEREST; REQUIRING THE COMPANY TO
REIMBURSE ACSC'S REASONABLE RA TEMAKING EXPENSES;
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
ACSC'S LEGAL COUNSEL.
WHEREAS, the City of University Park, Texas ("City") is a gas utility customer of Atmos
Energy Corp., Mid-Tex Di vision ("Atmos Mid-Tex" or "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 similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities") that have joined
together to facilitate the review of, and response to, natural gas issues affecting rates charged in
the Atmos Mi d-Tex service area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate
Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC
Cities as a substitute to the Gas Reliabil ity Infrastructure Program ("GRIP") process instituted by
the Legislature, and that will establ ish rates for the ACSC Cities based on the system-wide cost of
serving the Atmos Mi d-Tex Division; and
WHEREAS, on March 1, 2016, Atmos Mid-Tex filed its 2016 RRM rate request with
ACSC Cities; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 20 16 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues
identified in the Company's RRM filing; and
WHEREAS, the Executive Committee, as we ll as ACSC's counsel and consultants,
recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $29.9
million on a system-wide basis; and
WHEREAS , the attached tariffs implementing new rates are consistent with the
recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just,
reasonable, and in the public interest; and
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses
associated with RRM applications;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS:
Section 1. That the findings set forth in this Ordinance are hereby in all things approved.
Section 2. That the City Council finds that the settled amount of an increase in revenues
of $29.9 million on a system-wide basis represents a comprehensive settlement of gas utility rate
issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal
limits arising from Atmos Mid-Tex's 2016 RRM filing is in the public interest, and is consistent
with the City's authority under Section 103.001 of the Texas Utilities Code.
Section 3. That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment A, are just
2
and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $29.9
million in revenue over the amount allowed under currently approved rates, as shown in the Proof
of Revenues attached hereto and incorporated herein as Attachment B; such tariffs are hereby
adopted.
Section 4. That the ratemaking treatment for pensions and other post-employment benefits
in Atmos Mid-Tex's next RRM filing shall be as set forth on Attachment C, attached hereto and
incorporated herein.
Section 5. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of
the ACSC in processing the Company's 2016 RRM filing .
Section 6. That to the extent any resolution or ordinance previously adopted by the Council
is inconsistent with this Ordinance, it is hereby repealed.
Section 7. 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 8. 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 9. That consistent with the City Ordinance that established the RRM process, this
Ordinance shall become effective from and after its passage with rates authorized by attached
tariffs to be effective for bills rendered on or after June 1, 2016.
Section 10. That a copy ofthis Ordinance shall be sent to Atmos Mid-Tex, care of Chris
Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy
3
Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General
Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
PASS ED AND APPROVED this 3rd day of M~ c -~.
Mayor
ATTEST: ~~~
City Secretary City Attorney
4
MID-TEX DIVISION
Attachment A
RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R-RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 I PAGE: 12
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished .
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $19.10 per month
Rider CEE Surcharge $ 0.02 per month'
Total Customer Charge $ 19.12 per month
Commodity Charge -All Ccf $0.11378 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
1Reference Rider CEE-Conservation and Energy Efficiency as approved in GUO 10170. Surcharge billing effective July 1, 2015.
MID-TEX DIVISION
Attachment A
RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C -COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 I PAGE: 13
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an averc~ge annual usage of less than 30 ,000 Ccf.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, add itional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished .
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $41.75 per month
Rider CEE Surcharge $ 0.02 per month 1
Total Customer Charge $41 .77 per month
Commodity Charge -All Ccf $ 0.08494 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for ta x calculated in accordance with Rider TAX .
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
1 Reference Rider CEE -Conservation and Energy Efficiency as approved in GUO 10170. Surcharge billing effective July 1, 2015.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I-INDUSTRIAL SALES
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS --------.-----------------~
j PAGE: 14 EFFECTIVE DATE: Bills Rendered on or after 06/01/2016
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day
for all natural gas provided at one Point of Delivery and measured through one meter. Service for
Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at
Company's sole option and will require special contract arrangements between Company and Customer.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the fo llowing Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 738 .00 per month
r-----------------------------~r---~-----
First 0 MMBtu to 1,500 MMBtu $ 0.3096 per MMBtu
r-----------------------------~r----~-----
Next 3,500 MMBtu $ 0.2267 per MMBtu
~----------------------------~r----------
Ail MMBtu over 5,000 MMBtu $ 0.0486 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively. of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF . Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculate.d in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will , for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed n Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
MID-TEX DIVISION
Attachment A
RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
EFFECTIVE DATE:
Agreement
I -INDUSTRIAL SALES
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS --------~--------------~
I PAGE: 15 Bills Rendered on or after 06/01/2016
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate I, Customer must have the type of meter required by Company.
Customer must pay Company all costs associated with the acquisition and installation of the meter.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T-TRANSPORTATION
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 I PAGE: 16
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 738.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.3096 per MMBtu
Next 3,500 MMBtu $ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0486 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF . Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month .
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T-TRANSPORTATION
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 PAGE: 17
Curtailment Overpull Fee
Upon notification by Company of an event of curtailm€nt or interruption of Customer's deliveries,
Customer will , for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey''
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" is no longer published , Company will calculate the applicable imbalance fees
utilizing a daily price index recognized as authoritative by the natural gas industry and most closely
approximating the applicable index.
Agreement
A transportation agreement is required.
Notice
Service hereunder and the rates for services provided aie subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Serv1ce.
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.
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA-WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2016 PAGE: 41
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin , Dallas, Waco, and Wichita Falls .
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
WNAFi
Where
WNAFi
R I
HSFi
NOD
ADD
Bli
= R I
(HSFi
(Bli
X (NOD-ADD))
+ (HSFi x ADD) )
= any particular Rate Schedule or billing classification within any such
=
=
=
=
=
=
particular Rate Schedule that contains more than one billing classification
Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
billing cycle actual heating degree days.
base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNAi = WNAFi x qi
Where qii is the relevant sales quantity for the jth customer in ith rate schedule.
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER:
APPLICABLE TO:
EFFECTIVE DATE:
Weather Station
Abilene
Austin
Dallas
Waco
Wichita
Falls
WNA-WEATHER NORMALIZATION ADJUSTMENT
ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
Bills Rendered on or after 11/01/2016 PAGE: 42
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Ccf Ccf/HDD Ccf Ccf/HDD
10.09 0.1392 98.01 0.6440
11 .21 0.1551 203.36 0.8564
13.72 0.2048 189.83 0.9984
9.89 0.1411 129.75 0.6695
11.49 0.1506 122.35 0.5967
Weather Normalization Adjustment (WNA) Report
On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in
Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated
its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the
company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of
Texas' Gas Services Division, addressed to the Director of that Division.
File Date: March 1, 2016 ATMOS ENERGY CORP., MID-TEX DIVISION PROPOSED TARIFF STRUCTURE (BEFORE RATE CASE EXPENSE RECOVERY) TEST YEAR ENDING DECEMBER 31, 2015 (a) (b) 1 Proposed Change In Rates: 2 Proposed Change In Rates without Revenue Related Taxes: 3 4 5 6 Residential 8 Commercial 9 Industrial and Transportation 10 Net Revenue Requirements GUO No. 10170 11 12 13 14 Revenue Requirements $ 338,431,486 84,223,622 11,490,316 $ 434,145,424 (c) $ 29,603,205 $27,447,850 Allocations 77.95% 19.40% 2.65% (d) (e) (f) Schedule A Ln 1 divided by factor on WP _F-5.1 Per GUO 10170 Final Order Per GUO 10170 Final Order Per GUO 10170 Final Order Proof of Revenues (g) (h) (i) Ul (k) 15 16r.JW~it~h~P~r-o_p_o~rt~io_n_a~l~ln_cr_e_a_s_e_a~l~l-c~la~s~s~es~b-~~R~e~s~id~e~n7ti-a~la~n~d~a~4~0~%7o~re~s~i~d~e~nt~ia~l~b~a-s~e-ch~a~r~ge~in-c~r~e~a~se~:-----------,l With Customer Charges Rounded Off and residential base charge increase for 2015 limited to $0.50 per RRM tariff: 17 18 Current Prospective Revenues 19 20 Residential Base Charge $ 18.56 $ 0.48 $ 8,558,622 21 Residential Consumption Charge $ 0.09931 $ 0.01540 12,837,933 22 Commercial Base Charge $ 39.87 $ 1.81 2,662,423 23 Commercial Consumption Charge $ 0.08020 $ 0.00480 2,662,423 24 I& T Base Charge $ 697.35 $ 3803 363,224 25 I&T Consumption Charge Tier 1 MMBTU $ 0.2937 $ 0.0166 172,1o7 26 I&T Consumption Charge Tier 2 MMBTU $ 0.2151 $ 0.0121 139,070 27 I&T Consumption Charge Tier 3 MMBTU $ 0.0461 $ 0.0026 51,988 28 $ 27,447,850 29 Proposed Change Residential Base Charge $ 0.52 Residential Consumption Charge $ 0.01447 Commercial Base Charge $ 1.83 Commercial Consumption Charge $ 0.00474 I& T Base Charge $ 39.65 I& T Consumption Cha1ge Tier 1 MMBTU $ 0.0159 I&T Consumption Charge Tier 2 MMBTU $ 0.0116 I&T Consumption Charge Tier 3 MMBTU $ 0.0025 $ $ Proposed Change In Revenues 9,335,278 12,061,297 2,697,162 2,626,475 378,728 165,150 132,888 49,955 27,446,933 $ $ $ $ $ $ $ $ Proposed Rates Proposed Revenues 19.08 0.11378 41.70 0.08494 737.00 0.3096 0.2267 0.0486 $ 339,813,673 94,839,970 61,390,268 47,065,984 7.039,815 3,215,7471 ~.,. 2,597,042 971,117 $ 556,933,616 WP_J-5 Page 2 of 4
File Date: March 1. 2016 Line No. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ATMOS ENERGY CORP., MID-TEX DIVISION PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT TEST YEAR ENDING DECEMBER 31,2015 Shared Services Post-Pension Retirement Pension Mid-Tex Direct Supplemental Account Plan Medical Plan Account Plan Executive Benefit Description ("PAP") ("FAS 106") ("PAP") Plan ("SERP") (a) (b) (c) (d) (e) Fiscal Year 2016 Towers Watson Report as adjusted (1), (3) $ 5,101,680 $ 2,896,450 $ 7,840,683 $ 150,433 $ O&M Expense Factor (2) 96.41% 96.41% 37.42% 20.77% Fiscal Year 2016 Actuarially Determined O&M Benefits (Ln 1 x Ln 2) $ 4,918,540 $ 2.792,473 $ 2,933,599 $ 31,249 $ Allocation to Mid-Tex (2) 40.56% 40.56% 71.52% 100.00% Mid-Tex Benefits Expense Included in Rates-Proposed (Ln 3 x Ln 4) $ 1,995,016 $ 1,132,659 $ 2,098,222 $ 31,249 $ Mid-Tex Benefits Expense per GUO 10359 and RRM Test Year Ending December 31, 2014 Benchmark (4) $ 2,831,859 $ 2,013,260 $ 2,925,600 $ 34,809 $ Test Year Adjustment (Line 5 minus Line 7) $ (836,844) $ (880,601) $ (827,379) $ (3,561) $ Adjustment Summary: Account922 $ (836,844) $ (880,601) $ $ $ Account926 (827,379) (3,561) Total (Ln 12 plus Ln 13) $ (836,844). $. {88(),6Q1J $ . (827,379) $ (3,561) $ Notes: 1. Studies not applicable to Mid-Tex or Shared Services are omitted. 2. The factors on Lines 2 and 4 are based on the factors in 2016 RRM (Test Year Ending December 31 ,2015). 3. SSU amounts exclude cost centers which do not allocate to Mid-Tex for rate making purposes. 4. GUD No. 10359 is the benchmark for January-May which is the same benchmark as used in the RRM TYE December 31, 2014 for June· December. Post-Retirement Medical Plan ("FAS 106") (f) 4,466,430 37.42% 1,671,119 71.52% 1,195,248 $ 2,695,721 $ (1 ,500,472) $ $ (1 ,500,472) (1 ,500,472) $ Attachment C Adjustment Total (g) -6~452,393 10,501,250 (4,048,856) (1,717,445) (2,331,412) (4,048,856) WP_F-2.3 Page 1 of 2
Line No. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ATMOS ENERGY CORP., MID-TEX DIVISION PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL TEST YEAR ENDING DECEMBER 31, 2015 Shared Services Pension Post-Retirement Pension Mid-Tex Direct Supplemental Account Plan Medical Plan Account Plan Executive Benefit Description --(''f_"P") ("FAS 106") ("PAP") Plan ("SERP") (a) (b) (c) (d) (e) Fiscal Year 2016 Towers Watson Report (excluding Removed Cost Centers) $ 5,101,680 $ 2,896,450 $ 7,840,683 $ 150,433 Allocation to Mid-Tex 40.56% 40.56% 71.52% 100.00% FY16 Towers Watson Benefit Costs (excluding Removed Cost Centers) Allocated to MTX (Ln 1 x Ln 2) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433 O&M and Capital Allocation Factor 100.00% 100.00% 100.00% 100 00% FY16 Towers Watson Benefit Costs To Approve (excluding Removed Cost Centers) (Ln 3 x Ln 4) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433 Summary of Costs to Approve: Total Pension Account Plan ("PAP") $ 2,069,299 $ 5,607,955 Total Post-Retirement Medical Plan ("FAS 106") $ 1,174,833 Total Supplemental Executive Retirement Plan ("SERP") $ 150,433 Total (ln 10 + l.n 11 + Ln j 2) $ . 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433 O&M Expense Factor 96.41% 96.41% 37.42% 20.77% Expense Portion (Ln 13 x Ln 16) $ 1,995,016 $ 1 '132,659 $ 2,098,222 $ 31,249 Capital Factor 3.59% 3.59% 62.58% 79.23% Capital Portion (Ln 13 x Ln 20) $ 74,283 $ 42,174 $ 3,509,733 $ 119,184 Total (Ln 18 + Ln 22) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433 Attachment C Post-Retirement Medical Plan Adjustment ("FAS 106") Total (f) (g) $ 4,466,430 71.52% $ 3,194,561 100.00% $ 3,194,561 $ 12,197,081 $ 7,677,254 $ 3,194,561 4,369,394 150,433 $ 3,194,561 $ 12,1-97,081 .-.. tof. 37.42% $ 1 '195,248 $ 6,452,393 62.58% $ 1,999,313 $ 5,744,687 $ 3,194,561 $ 12,197,081