HomeMy WebLinkAbout01-28-08 TC Agenda PacketTOWN OF WESTLAKE, TEXAS
BOARD OF ALDERMEN PRE -BOARD MEETING
AGENDA
JANUARY 28, 2008
WESTLAKE CIVIC CAMPUS - DINING HALL
2600 J. T. OTTINGER ROAD
5:00 P.M.
5:00 P.M. 1. CALL TO ORDER.
2. DISCUSS OIL AND GAS WELL DRILLING ORDINANCE.
6:00 p.m. 3. HEAR AND DISCUSS REPORT FROM GIDEON TOAL REGARDING
PROPOSED ARTS AND SCIENCES CENTER BUILDING.
6:45 p.m. 4. REVIEW OF REGULAR AGENDA ITEMS.
6:50 p.m. 5. TOWN MANAGER'S REPORT.
6:55 p.m. 6. ADJOURNMENT.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle,
Westlake, Texas and the Westlake Civic Campus, 2600 J.T. Ottinger Road, Westlake, Texas, on Friday,
January 25, 2008 by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code.
t
'm utter, TRMC, Town Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please
advise the Town Secretary 48 hours in advance at 817 - 490 -5710 and reasonable accommodations
will be made to assist you.
TOWN OF WESTLAKE, TEXAS
BOARD OF ALDERMEN REGULAR MEETING
AGENDA
JANUARY 28, 2008
WESTLAKE CIVIC CAMPUS
2600 J. T. OTTINGER ROAD
7:00 p.m.
1. CALL TO ORDER.
2. CITIZENS' PRESENTATIONS: This is an opportunity for citizens to address the Board
on any matter whether or not it is posted on the agenda. The Board cannot by law take
action nor have any discussion or deliberations on any presentation made to the Board at this
time concerning an item not listed on the agenda. Any item presented may be noticed on a
future agenda for deliberation or action.
3. HEAR A REPORT FROM WESTLAKE ACADEMY FOUNDATION PRESIDENT
CHRIS NOONAN.
4. HEAR STATUS REPORT ON CONSTRUCTION OF ARTS AND SCIENCES
CENTER BUILDING.
5. CONSIDER A RESOLUTION APPOINTING A MEMBER TO THE WESTLAKE
HISTORICAL PRESERVATION SOCIETY BOARD OF DIRECTORS.
6. CONSIDER AN ORDINANCE APPROVING A SETTLEMENT AGREEMENT
BETWEEN THE TOWN AND ATMOS ENERGY CORP., MID -TEX DIVISION
CATMOS MID -TEX" OR "THE COMPANY ") REGARDING THE COMPANY'S
STATEMENT OF INTENT TO CHANGE GAS RATES IN ALL CITIES
EXERCISING ORIGINAL JURISDICTION.
7. CONSENT AGENDA: All items listed below are considered routine by the Board of
Aldermen and will be enacted with one motion. There will be no separate discussion of
items unless a Board member or citizen so requests, in which event the item will be removed
from the general order of business and considered in its normal sequence.
A. Review and approve minutes of the Board of Aldermen pre -board and regular meetings
held on January 14, 2008.
B. Review and approve any outstanding bills.
8. STAFF REPORTS.
A. Update from DPS Director Don Wilson regarding the Fire Department and Emergency
Management.
9. TOWN MANAGER'S REPORT.
10. MAYOR AND ALDERMEN REPORTS / COMMENTS.
11. ADJOURNMENT.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village
Circle, and Westlake Civic Campus, 2600 J.T. Ottinger Road, Westlake, Texas, on Friday, January
25, 2008, by 5 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code.
in utter, TIZMZC, Town Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please
advise the Town Secretary 48 hours in advance at 817 - 490 -5710 and reasonable accommodations
will be made to assist you.
Town of Westlake
Memo
To: Honorable Mayor and Members of the Board of Aldermen
From: Joe C. Hennig, Interim Town Manager
Kim Sutter, Town Secretary
Subject: Regular Meeting of January 28, 2008
Date: January 22, 2008
ITEM
Consider a resolution appointing a member to the Westlake Historical Preservation
Society Board of Directors.
BACKGROUND
The WHPS was created by the Board of Aldermen in February 2000 for the purpose of
preserving and recording the rich history of the Town.
The Board consists of 10 members and currently one vacancy exists on the Board.
Lisa Councilman has submitted an application for consideration of appointment to serve
on the Board.
APPROVED BY:
T�vn Secretary's Office
TOWN OF WESTLAKE
RESOLUTION NO. 08 -03
APPOINTING A MEMBER TO THE WESTLAKE HISTORICAL PRESERVATION
SOCIETY BOARD OF DIRECTORS.
WHEREAS, the Westlake Historical Preservation Society Board of Directors currently
has one vacancy with a term expiring June 2009.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1: That the Board of Aldermen of the Town of Westlake, Texas, does hereby
appoint the follwAring individual to serve as a member of the Westlake Historical Preservation
Society Board of Directors for the designated terms:
Lisa Councilman expiring term of June 2009
SECTION 2: That this Resolution shall become effective upon the date of its passage.
PASSED AND APPROVED ON THIS 28 DAY OF JANUARY 2008.
ATTEST:
Kim Sutter, TRMC, Town Secretary
APPROVED AS TO FORM:
L. Stanton Lowry, Town Attorney
Scott Bradley, Mayor
Joe C. Hennig, Interim Town Manager
Town of Westlake
Memo
To: Honorable Mayor and Members of the Board of Aldennen
From: Joe C. Hennig, Interim Town Manager
Subject: Regular Meeting of January 28, 2008
Date: January 10, 2008
ITEM
Consider an Ordinance approving a settlement agreement between the Town and
ATMOS Energy Corp., MID-TEX Division ( "Atmos MID-TEX" or "the company ")
regarding the company's Statement of Intent to change gas rates in all cities exercising
original jurisdiction.
BACKGROUND
The ACSC Settlement Committee (Jay Doegey — Arlington, Danny Reed — Fort Worth,
Mark Israelson — Plano, Don Wilson — Eastland, Doreen McGookey — Sherman, Tom
Akins — Denison, Cathy Cunningham — various ACSC cities), with the advice and input
of consultants and lawyers retained by ACSC, has worked since October to explore
options to resolve the Company's pending $52 million rate increase request without the
necessity of a protracted and costly contested case proceeding.
The attached Settlement Agreement is a result of their efforts. It reduces Atmos' rate
increase by more than 80 percent, resolves several outstanding issues on appeal, requires
reimbursement of more than $500,000 expended by ACSC to litigate GRIP cases, and
eliminates the piecemeal ratemaking GRIP process in favor of an expedited rate review
process controlled by cities. The ACSC Executive Committee recommends approval
of the settlement agreement because it provides rate certainty, represents an outcome
that is equal to or better than the outcome expected from a lengthy contested case
proceeding, and maintains cities' role as a regulator of natural gas rates.
The Town, along with 150 other cities served by Atmos Energy Mid -Tex Division
( "Atmos" or "Company "), is a member of the Atmos Cities Steering Committee
( "ACSC "). Since October, ACSC members have worked diligently with Atmos
representatives to explore options to address Atmos' latest request to increase rates by
$52 million and to resolve other outstanding issues. The ordinance and tariffs
(Attachment B to the Ordinance) reflect the agreement reached between ACSC and
Atmos Mid -Tex to reduce Atmos' requested increase by more than 80 percent and ensure
that the Company is able to provide safe and reliable natural gas service. The Settlement
Agreement (Attachment A to the Ordinance) also provides rate certainty for customers by
resolving outstanding appeals, creates a new process for expedited rate review by the
cities, eliminates piecemeal ratemaking, reimburses ACSC for rate case expenses
associated with the GRIP surcharge cases, and avoids the necessity of costly litigation.
Page 1 of 4
The ACSC Executive Committee recommends that ACSC members approve the
Settlement Agreement.
Purpose of the Ordinance:
The purpose of the Ordinance is to endorse the Settlement Agreement between ACSC
and Atmos regarding the Company's Statement of Intent to increase rates and to approve
tariffs that implement the terms of the Settlement Agreement.
Approval of the Ordinance will result in a $10 million increase in Atmos' revenues. This
is an 80 percent reduction of the $52 million increase requested by Atmos in its
Statement of Intent. In addition, the tariffs approved by the Ordinance will replace the
current piecemeal ratemaking GRIP surcharge system with an expedited rate review
process that ensures that cities can review all components of future Company rate change
requests. The Settlement Agreement also resolves all outstanding issues between ACSC
and Atmos, including six appeals currently pending in Texas courts.
Procedural History and Background on Atmos Rate Increases Since 2004:
On September 20, 2007, Atmos filed with the Town the Company's Statement of Intent to
increase natural gas rates system -wide by approximately $52 million. The Town
suspended the October 25th Effective Date to work with other ACSC members to analyze
the schedules and evidence offered by Atmos to support its request to increase rates. In
order to facilitate approval of this Ordinance and the attached tariffs, Atmos Mid -Tex has
agreed to extend the deadline for final Town action until March 1, 2008.
Atmos' rate request represents the seventh increase in natural gas rates for customers in
the Atmos Mid -Tex service area since 2004. Four rate increases are the result of Gas
Reliability Infrastructure Program (GRIP) surcharges enacted pursuant to the Texas
Utilities Code § 104.301. A primary complaint of cities around the state regarding GRIP
filings is that it is piecemeal ratemaking and only looks at changes in the utility's invested
capital, rather than a more comprehensive review of all components affecting rates
charged. Cities thus far have been unsuccessful in defeating GRIP at the Legislature and
in court.
In addition to the four GRIP surcharges, base rates charged to customers served by
Atmos Mid -Tex have increased as the result of two system -wide cost of service rate
filings since 2004. The Company's current request to increase base rates would be the
third system -wide cost of service increase for customers in Atmos Mid -Tex's service area
since 2004.
In the most recent cost of service rate request, GUD No. 9670, the Railroad Commission
of Texas ( "RRC" or "Commission ") issued an order in March, 2007, approving new
system -wide rates for customers of Atmos Mid -Tex. Residential customers were
impacted disproportionally by the Commission's final order, with residential rates
increasing by $10 million annually, despite an overall system -wide rate increase of $5
million.
System -wide rates charged to residential customers in the Atmos Mid -Tex region were
also increased by several million dollars in 2004 in GUD No. 9400. In GUD Nos. 9400
and 9670, the hearings examiners that heard the testimony and evaluated the evidence
Page 2 of 4
recommended that rates be reduced for customers. However, in both cases, the Railroad
Commission reversed key decisions of its own hearings examiners, ultimately issuing
final orders that approved rate increases instead of the recommended rate reductions.
Reasons Justifying Settlement:
During the time that the Town has retained original jurisdiction in this case, consultants
working on behalf of ACSC members have investigated the support for the Company's
requested rate increase. While the evidence does not support the $52 million increase
requested by the Company, ACSC consultants agree that the Company can justify an
increase in revenues of at least $8 million and that there is a reasonably high probability
that the RRC would award an increase of at least $10 million.
A contested case proceeding before the RRC on the Company's current application will
take several months and cost ratepayers millions of dollars in rate case expenses and
would not likely produce a request more favorable than that to be produced by the
settlement. The ACSC Executive Committee recommends that ACSC members take
action to approve the Settlement Agreement. This Settlement Agreement achieves
several desirable outcomes, including:
• Reverses rate design decisions that unfairly impact residential ratepayers
• Does away with piecemeal ratemaking problems inherent to the GRIP surcharge
process
• Eliminates exposure to potential court reversal of the multi - million dollar Poly -1
Pipe disallowance ( Atmos' issue on appeal in Docket No. 9400)
• Avoids uncertainty and potential negative consequences of Railroad Commission
rate review (in the two most recent rate cases affecting Atmos Mid -Tex
customers, the Commission has reversed rate reductions recommended by its own
hearings examiners in favor of rate increases)
• Implements an expedited rate review process that includes the cities and allows
review of all aspects of Atmos' cost of service
• Requires Atmos to reimburse ACSC for more than $500,000 paid to litigate GRIP
surcharge cases
• Protects ACSC members and their citizens from the remote possibility that a
litigated outcome or settlement with other parties produces a result more
favorable than the ordinance passed by ACSC members by including a Most
Favored Nations provision in the Settlement Agreement.
Page 3 of 4
Explanation of "Be It Ordained" Paragraphs:
This paragraph approves all findings in the ordinance.
2. This section adopts the Settlement Agreement in all respects and finds it to
be just, reasonable and in the public interest.
3. This section adopts the attached Tariffs in all respects and finds the rates
set pursuant to the attached Tariffs to be just, reasonable and in the public interest. Note
that only new tariffs or existing tariffs that are being revised are attached to the
Ordinance. Existing tariffs that are not being changed in any way are not attached to the
Ordinance.
4. This section repeals any resolution or ordinance that is inconsistent with
this Ordinance.
5. This section finds that the meeting was conducted in compliance with the
Texas Open Meetings Act, Texas Government Code, Chapter 551.
6. This section is a savings clause, which provides that if any section(s) is
later found to be unconstitutional or invalid, that finding shall not affect, impair or
invalidate the remaining provisions of this Ordinance. This section further directs that
the remaining provisions of the Ordinance are to be interpreted as if the offending section
or clause never existed.
7. This section is a "Most Favored Nations" clause, which protects the Town
by mandating that if a Final Order or subsequent settlement agreement approved in any
proceeding addressing the issues raised in Atmos' Statement of Intent filing result in
rates, revenues, terms and conditions, or benefits that would be more beneficial to the
ACSC Cities than the terms of this Settlement Agreement, the Town may, at its option,
implement and benefit from such more favorable rates, revenues, terms and conditions, or
benefits shall additionally accrue to the ACSC Cities. However, the section makes it
clear that application of the Most Favored Nations provision does not affect the approval
of the Rider RRM, Rider CEE, Rider GCR and the Rider WNA, which shall continue
according to their terms.
This section provides for an effective date upon passage.
9. This paragraph directs that a copy of the signed resolution be sent to a
representative of the Company and legal counsel for ACSC.
FUNDING
N/A
APPROVED BY. Jul
Tetwn a ager's Off e To n Secretary's Office
Page 4 of 4
ACSC Cities
(151 Total)
Abilene
Fate
Palestine
Addison
Flower Mound
Pantego
Allen
Forest Hill
Paris
Alvarado
Fort Worth
Parker
Angus
Frisco
Pecan Hill
Anna
Frost
Plano
Argyle
Gainesville
Ponder
Arlington
Garland
Pottsboro
Bedford
Garrett
Prosper
Bellmead
Grand Prairie
Putnam
Benbrook
Grapevine
Quitman
Beverly Hills
Haltom City
Red Oak
Blue Ridge
Harker Heights
Reno (Parker County)
Bowie
Haskell
Richardson
Boyd
Haslet
Richland Hills
Bridgeport
Heath
Roanoke
Brownwood
Hewitt
Robinson
Buffalo
Highland Park
Rockwall
Burkburnett
Highland Village
Roscoe
Burleson
Honey Grove
Rowlett
Caddo Mills
Hurst
Sachse
Carrollton
Iowa Park
Saginaw
Cedar Hill
Irving
Seagoville
Celeste
Justin
Sherman
Celina
Kaufman
Snyder
Cisco
Keene
Southlake
Cleburne
Keller
Springtown
Clyde
Kemp
Stamford
College Station
Kennedale
Stephenville
Colleyville
Kerrville
Sulphur Springs
Colorado City
Killeen
Sweetwater
Comanche
Krum
Temple
Coolidge
Lakeside
Terrell
Coppell
Lake Worth
The Colony
Corinth
Lancaster
Throckmorton
Corral City
Lewisville
Tyler
Crandall
Lincoln Park
University Park
Crowley
Little Elm
Venus
Dalworthington Gardens
Malakoff
Vernon
Denison
Mansfield
Waco
Desoto
McKinney
Watauga
Duncanville
Melissa
Waxahachie
Eastland
Mesquite
Westlake
Edgecliff Village
Midlothian
Westworth Village
Emory
Murphy
Whitesboro
Ennis
Newark
White Settlement
Euless
Nocona
Wichita Falls
Everman
North Richland Hills
Woodway
Fairview
Northlake
Wylie
Farmers Branch
Oak Leaf
Farmersville
Ovil la
Comparison of Customer Impacts:
Atmos' Requested Rates as filed (Statement of Intent)
and the Settlement Agreement
In its Statement of Intent filed with the Cities on September 20, 2007, Atmos Mid -Tex asked for a $52 million increase from
total customers revenues of $1,512 million. If approved, the Company's revenues would have increased 3.4 percent.
The $10 million revenue increase authorized by the Settlement Agreement represents a 0.66 percent increase in Company
revenues.
Atmos Requested Rates
Settlement Agreement
Current
Atmos Req.
Settlement
Monthly
Monthly
Change ($)
Change ( %)
Agreement
Change ($)
Change ( %)
Bill
Bill
Monthly Bill
Residential
(using 4.4 Mcf
$54.99
$57.07
$2.08
3.77%
$55.19
$0.20
0.37%
per month)
Commercial
(using 30 Mcf
$296.15
$305.36
$9.21
3.11%
$299.60
$3.48
1.18%
per month)
Industrial
(using 300
$2,975.21
$3,143.10
$167.89
5.64%
$2978.79
$3.58
0.12%
MMBTU)
Transport
(using 300
$519.87
$687.76
$167.89
32.30%
$523.45
$3.58
0.69%
MMBTU)
In its Statement of Intent filed with the Cities on September 20, 2007, Atmos Mid -Tex asked for a $52 million increase from
total customers revenues of $1,512 million. If approved, the Company's revenues would have increased 3.4 percent.
The $10 million revenue increase authorized by the Settlement Agreement represents a 0.66 percent increase in Company
revenues.
Atmos Energy - Mid -Tex Division
2007 Rate Case Settlement
January 2008
➢ Atmos Energy filed a request to increase rates with the 439 cities of the Mid -Tex
Division on Thursday, September 20, 2007.
• Your city acted to suspend the effective date of the rates to January 23,
2008.
• The company has voluntarily extended this deadline to February 15, 2008
to allow the city time to consider a settlement agreement.
• Your city must take action prior to February 15, 2008 or the rates will be
approved as filed by operation of law.
• The Company requested a. revenue increase of $1.57 per month for an
average residential customer or $51.9 million annually.
➢ Atmos Energy has reached a settlement agreement with the ACSC coalition of
cities
o This group represents over 130 cities and approximately 54% of the Mid -
Tex customers
o We are requesting that the city approve the settlement agreement
➢ Summary of the Settlement Agreement
• Revenue increase of $10 million effective for billing starting March 1, 2008
• Establishes an annual rate adjustment mechanism to replace GRIP filings
(Rider RRM)
• Recovery of uncollectible gas cost through the Rider GCR beginning
October 1, 2008
• Establishment of an Energy Conservation Program for elderly and low
income customers.
• Reduction of the monthly customer charge for residential customers to $7
per month effective October 1
• 9.6% Return on Equity and actual capital structure not to exceed 48.1%
equity
➢ Customer Impact
o Average Residential increase of $0.20 /month, 0.4% overall
o Average Commercial increase of $3.92 /month, 1.2% overall
0 300 Mcf Industrial Sales increase of $3.58, 0.1% overall
➢ Benefits of Settlement
• Company and the city continue to partner in providing safe and reliable
service to our customers
• Settlement avoids the cost of litigation that is born by customers
• Settlement represents a small increase in rates to customers
• Residential customers will see a reduction in the fixed monthly charge
beginning October 1.
TOWN OF WESTLAKE
ORDINANCE NO. 585
AN ORDINANCE OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE,
TEXAS, ( "TOWN ") APPROVING A SETTLEMENT AGREEMENT BETWEEN THE
TOWN AND ATMOS ENERGY CORP., MID -TEX DIVISION ( "ATMOS MID -TEX"
OR "THE COMPANY ") REGARDING THE COMPANY'S STATEMENT OF INTENT
TO CHANGE GAS RATES IN ALL CITIES EXERCISING ORIGINAL
JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE;
ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH
THE SETTLEMENT AGREEMENT AND FINDING THE RATES TO BE SET BY THE
TARIFFS TO BE JUST AND REASONABLE; 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 Town of Westlake, Texas ( "Town ") is a gas utility customer of Atmos
Energy Corp., 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, on or about September 20, 2007, Atmos Mid -Tex, pursuant to Gas Utility
Regulatory Act § 104.102 filed with the Town a Statement of Intent to increase system -wide gas
rates by approximately $52 million, such increase to be effective in all municipalities exercising
original jurisdiction within its Mid -Tex Division service area effective on October 25, 2007; and
WHEREAS, the Town took action to suspend the October 25, 2007 Effective Date and
to coordinate a response to Atmos' filing with more than 130 other similarly situated
municipalities through the Atmos Cities Steering Committee ( "ACSC ") (such participating cities
are referred to herein as "ACSC Cities "); and
WHEREAS, Atmos has agreed to extend the October 25, 2007, Effective Date such that
the Town's jurisdiction over this matter ends February 6, 2008; and
WHEREAS, the Railroad Commission issued an Order on Rehearing approving new
system -wide rates for customers of Atmos Energy's Mid -Tex Division on June 13, 2007, in GUD
No. 9670, which increased residential base rates by approximately $10 million annually; and
WHEREAS, ACSC and Atmos have each appealed the Railroad Commission's decision
in Atmos' most recent system -wide rate increase as well as the decision rendered in GUD No.
9400 to the Travis County District Court; and
WHEREAS, Atmos and ACSC have been in continuing disagreement, dispute, and
litigation over the application of SECTION 104.301 of the Texas Utilities Code and the resulting
rate increases ( "GRIP surcharges ") established by the Railroad Commission of Texas ( "RRC" or
the "Commission "); and
WHEREAS, Atmos filed its application for its fourth GRIP surcharge in four years on
May 31, 2007, seeking to increase the rates of all customers by approximately $12 million
annually; and
WHEREAS, the ACSC Cities desire to avoid the litigation expense that would result
from another lengthy contested rate case proceeding before the Railroad Commission as well as
the prosecution of the appeals in Texas District Courts and Court of Appeals of the GRIP
surcharges and previous system -wide rate decisions; and
WHEREAS, ACSC desires to recoup certain costs it previously incurred in connection
with GRIP- related proceedings (costs which Atmos contends are not reimbursable rate case
expenses under the Texas Utilities Code), as well as costs incurred in connection with this
proceeding; and
WHEREAS, on October 18, 2007, more than 60 ACSC members met in Arlington with
officers and executives of Atmos to discuss various issues, including rate making, resulting in a
mutual pledge to work toward settlement; and
WHEREAS, ACSC members designated a Settlement Committee made up of ACSC
representatives to work with ACSC attorneys and consultants to formulate and review reasonable
settlement positions to resolve outstanding matters with Atmos, including the pending rate
increase request; and
WHEREAS, the Settlement Committee and lawyers representing ACSC met several
times with the Company to negotiate a Settlement Agreement resolving the issues raised in the
Company's Statement of Intent filing as well as all outstanding appeals of the two prior rate
cases and various GRIP filings; and
WHEREAS, the Settlement Committee, as well as ACSC lawyers and consultants
believe existing rates are unreasonable and should be changed; and
WHEREAS, the ACSC Executive Committee recommends ACSC members approve the
negotiated Settlement Agreement and attached tariffs; and
WHEREAS, the attached tariffs provide for an expedited rate review process as a
substitute to the current GRIP process instituted by the Legislature; and
WHEREAS, the expedited rate review process as provided by the Rate Review
Mechanism Tariff eliminates piecemeal ratemaking, the ACSC's major objection to the current
GRIP process; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
Settlement Agreement and are just, reasonable, and in the public interest; and
WHEREAS, the Settlement Agreement as a whole is in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1. That the findings set forth in this Ordinance are hereby in all things
approved.
SECTION 2. That the Westlake Board of Aldermen finds that the Settlement Agreement,
which is attached hereto and incorporated herein as Exhibit A, is in the public interest and is
hereby endorsed in all respects.
SECTION 3. That existing rates for natural gas service provided by Atmos Mid -Tex are
unreasonable and new tariffs which is attached and incorporated herein as Exhibit B, are just
and reasonable and are hereby adopted.
SECTION 4. That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this Ordinance, it is hereby repealed.
SECTION 5. 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 6. 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 7. That if ACSC Cities determine any rates, rate design, or required action
resulting from a Final Order or subsequent settlement agreement approved in any proceeding
addressing the issues raised in Atmos' Statement of Intent to be more beneficial than the terms of
the attached Settlement Agreement, the more favorable rates, rate design, or required action shall
additionally accrue to the Town.
SECTION 8. 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 March
1, 2008.
SECTION 9. That a copy of this Ordinance shall be sent to Atmos Mid -Tex, care of Joe
T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink
Blevins Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767 -1725.
PASSED AND APPROVED THIS 28TH DAY OF JANUARY 2008.
Scott Bradley, Mayor
ATTEST:
Kim Sutter, TRMC, Town Secretary Joe C. Hennig, Interim Town Manager
APPROVED AS TO FORM:
L. Stanton Lowry, Town Attorney
ATTACHMENT A
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP., MID -TEX DIVISION
ON SEPTEMBER 20, 2007
SETTLEMENT AGREEMENT
This Settlement Agreement is entered into by and between Atmos Energy Corp.( "Atmos"
or "the Company ") and the Atmos Cities Steering Committee ( "ACSC "), whose members
include the Cities of Abilene, Addison, Allen, Alvarado, Angus, Anna, Argyle, Arlington,
Bedford, Bellmead, Benbrook, Beverly Hills, Blue Ridge, Bowie, Boyd, Bridgeport,
Brownwood, Buffalo, Burkburnett, Burleson, Caddo Mills, Carrollton, Cedar Hill, Celeste,
Celina, Cisco, Cleburne, Clyde, College Station, Colleyville, Colorado City, Comanche,
Coolidge, Coppell, Corinth, Corral City, Crandall, Crowley, Dalworthington Gardens, Denison,
DeSoto, Duncanville, Eastland, Edgecliff Village, Emory, Ennis, Euless, Everman, Fairview,
Farmers Branch, Farmersville, Fate, Flower Mound, Forest Hill, Fort Worth, Frisco, Frost,
Gainesville, Garland, Garrett, Grand Prairie, Grapevine, Haltom City, Harker Heights, Haskell,
Haslet, Heath, Hewitt, Highland Park, Highland Village, Honey Grove, Hurst, Iowa Park, Irving,
Justin, Kaufman, Keene, Keller, Kemp, Kennedale, Kerrville, Killeen, Krum, Lakeside, Lake
Worth, Lancaster, Lewisville, Lincoln Park, Little Elm, Malakoff, Mansfield, McKinney,
Melissa, Mesquite, Midlothian, Murphy, Newark, Nocona, North Richland Hills, Northlake, Oak
Leaf, Ovilla, Palestine, Pantego, Paris, Parker, Pecan Hill, Plano, Ponder, Pottsboro, Prosper,
Putnam, Quitman, Red Oak, Reno (Parker County), Richardson, Richland Hills, Roanoke,
Robinson, Rockwall, Roscoe, Rowlett, Sachse, Saginaw, Seagoville, Sherman, Snyder,
Southlake, Springtown, Stamford, Stephenville, Sulphur Springs, Sweetwater, Temple, Terrell,
The Colony, Throckmorton, Tyler, University Park, Venus, Vernon, Waco, Watauga,
Waxahachie, Westlake, Westworth Village, Whitesboro, White Settlement, Wichita Falls,
Woodway, and Wylie (collectively "ACSC Cities ").
WHEREAS, the Settlement Agreement resolves all issues relating to the Atmos Energy
Corp., Mid -Tex Division Statement of Intent filed with the ACSC Cities on September 20, 2007,
in a manner that Atmos and ACSC ( "the Signatories ") believe is consistent with the public
interest, and the Signatories represent diverse interests;
WHEREAS, the Signatories believe that a fully contested hearing in the case would be
time - consuming and entail substantial additional expense for all parties and that the public
interest will be served by adoption of an ordinance consistent with the Settlement Agreement;
NOW, THEREFORE, in consideration of the mutual agreements and covenants
established herein, the Signatories, through their undersigned representatives, agree to and
recommend for approval by the ACSC Cities the following Settlement Terms as a means of fully
resolving all issues raised in the September 20, 2007 Statement of Intent filed by Atmos on
behalf of its Mid -Tex division:
Settlement Terms
Atmos and the ACSC Cities agree to the rates, terms and conditions reflected in the
tariffs attached to this Settlement Agreement as Exhibit A. Said tariffs should allow
Atmos an additional $10 million in annual revenue by implementation of rates shown in
WP J -4
Page 2 of 3
ATMOS ENERGY CORP., MID -TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
Line Description Total Reference
(a) (b) (c)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Rate C
Rate Characteristics:
Customer Charge
$20.28
CCS
Consumption Charge ($ /Mcf)
$0.7104
CCS
Rider GCR Part A
$7.5520
Schedule H
Rider GCR Part B
$0.5001
Schedule I
Billing Units (1):
Bills
1,471,279
WP_J -1.2
Total MCF
49,665,131
WP—J-1.2
Present Revenue:
Customer Charge
Consumption Charge
Base Revenue
Rider GCR Part A
Rider GCR Part B
Subtotal
Revenue Related Taxes
Total Proposed Revenue- Rate C
$ 29,837,538
35,282,109
$ 65,119,647
375, 072, 987
24,837, 930
$ 465,030,564
27, 016, 551
$ 492,047,115
Note 1: See Billing Determinants Study for details.
32
WP J -4
Page 3 of 3
ATMOS ENERGY CORP., MID -TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
Line Description Total Reference
(a) (b) (c)
Rate I &T
1 Rate Characteristics:
2
Customer Charge
$344.75
CCS
3
4
Block 1 ($ /MMBTU)
$0.2200
CCS
5
Block 2 ($ /MMBTU)
$0.1600
CCS
6
Block 3 ($ /MMB -1 -U)
$0.0493
CCs
7
8
Rider GCR Part A
$7.5520
Schedule H
9
Rider GCR Part B
$0.2804
Schedule
10
11
Consumption Characteristics:
12
Block 1 (First 1,500 MMBTU)
0.21691
13
Block 2 (Next 3,500 MMBTU)
0.24651
14
Block 3 (Over 5,000 MMBTU)
0.53657
(�}
15
16
Billing Units (1):
17
Bills
11,542
WP J -1.3
18
Block 1
9,694,939
WP J -1.3
19
Block 2
11,018,084
WP J -1.3
20
Block 3
23,982,442
WP—J-1.3
21
Total MMBTU
44,695,465
22
23
Sales Volumes
2,858,579
WP J -1.3
24
25
Present Revenue:
26
Customer Charge
$
3,979,105
27
Block 1
2,132,887
28
Block 2
1,762,893
29
Block 3
1,182,334
30
Base Revenue
$
9,057,219
31
Rider GCR Part A
21,082,128
32
Rider GCR Part B
12,534,050
33
Subtotal
$
42,673,397
34
Revenue Related Taxes
2,479,166
35
36
Total Proposed Revenue- Rate I &T
$
45,152,563
37
38 Note 1: See Billing Determinants Study for details
33
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
the proof of revenues attached as Exhibit B. Atmos and the ACSC Cities 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 Texas Utilities Code.
The gas rates, terms and conditions established by this Settlement Agreement shall be
effective for bills rendered on or after March 1, 2008.
2. The net plant amounts shown in the attached Exhibit B are reasonable for the plant that is
used and useful in providing gas utility service.
Included as part of Exhibit A is a Rate Review Mechanism ( "Rider RRM ") that 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.
Atmos agrees that effective with the implementation of the first RRM rate adjustment,
Atmos shall file with the ACSC Cities a revised Rate R- Residential Sales Tariff to reduce
the customer charge per bill from $10.69 per month to $7.00 per month and to increase
the volumetric portion of the rate (shown as $1.271 in Exhibit A) to the appropriate level
to reflect reduction in customer charge from $10.69 to $7.00, as well as to reflect any
change resulting from the RRM implementation. The first RRM rate adjustment is
expected to occur October 1, 2008. Atmos and the ACSC Cities agree that following the
initial RRM adjustment any subsequent implementation of RRM adjustments shall be
supported as described in the Rider RRM, and shall limit changes to residential and
commercial customer charge to no more than 20 %. Further, the parties agree that any
approved adjustment in excess of the 20% limitation on the residential and commercial
customer charge shall be recovered through the volumetric portion of the rate.
4. With respect to the RRM, Atmos and the ACSC Cities agree that the rate increase
limitations set forth in Rider RRM under Calculation of Rate Adjustment, subpart (c)
shall not preclude Atmos from recovering any excluded costs during a subsequent
Evaluation Period in which the 5% limitation for O &M expenses or net plant investment,
respectively, is not reached or in a subsequent Statement of Intent case. To the extent
that Atmos seeks to recover any excluded costs during a subsequent Evaluation Period in
which the 5% limitation for O &M expenses or net plant investment, respectively, is not
reached or in a subsequent Statement of Intent case, Atmos shall identify these costs as a
specific line item in the schedule accompanying the RRM rate adjustment filing.
5. With respect to the RRM, Atmos further agrees to pay all reasonable and necessary
expenses of each entity having original jurisdiction that are incurred to review the
Company's annual RRM filings. Atmos further agrees that in calculating the proposed
rate for any Rate Effective Period, the Company shall not include: (1) any external legal,
expert, or consultant costs to prepare and/or provide supportive information related to its
filing; or (2) reimbursements to original jurisdiction entities.
6. Notwithstanding paragraph 5 of this Settlement Agreement, Atmos and ACSC agree that
in the event of an appeal of an original jurisdiction entity's decision regarding a proposed
RRM adjustment, recovery of rate case expenses shall be determined according to
Chapters 103 and 104, TEX. UTIL. CODE ANN. Further, in the event of such appeal(s),
2
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
Atmos shall recover any reimbursement made to the original jurisdiction entity through a
surcharge to customer rates whether such reimbursements are made during the initial
review period or appeal period.
7. Atmos agrees that it will make no filings on behalf of its Mid -Tex division under the
provisions of TEX. UTIL. CODE ANN. § 104.301 while the Rider RRM is in place, and any
such filings pending at the time the RRM is approved will be trued -up for revenue and
rate base components prior to implementation of the annual RRM. In the event that a
regulatory authority fails to act or enters an adverse decision regarding the proposed
annual RRM adjustment, the Railroad Connnission of Texas shall, pursuant to the
provisions of the Texas Utilities Code, have exclusive appellate jurisdiction to review the
action or inaction of the regulatory authority exercising exclusive original jurisdiction
over the RRM request. In addition, the Signatories agree that this Settlement Agreement
shall not be construed as a waiver of the ACSC Cities' right to initiate a show cause
proceeding or the Company's right to file a Statement of Intent under the provisions of
the Texas Utilities Code.
Atmos and the ACSC Cities commit that during the Initial Implementation Period, as
defined in the RRM tariff, Atmos and the ACSC Cities will not devote resources or
efforts to advocate statutory changes involving rate stabilization mechanisms or the Gas
Reliability Infrastructure Plan that is currently codified under TEX. UTIL. CODE §104.301.
9. Atmos and the ACSC Cities agree that the gas cost portion of uncollectible expense shall
be recovered through the Company's Rider GCR rather than through base rates. The
change in accounting for the gas cost portion of uncollectible expense (including both the
accrual of expense and write -off of accounts) shall become effective with the
implementation of the first RRM rate adjustment. The first RRM rate adjustment is
expected to occur October 1, 2008. In calculating the rate for the first Rate Effective
Period, the Company shall utilize the same methodology as used in the Company's
September 20, 2007 Statement of Intent with the only modification being to exclude the
effects of the gas cost portion of uncollectible expense from the base rate calculation.
10. Atmos and the ACSC Cities further agree that expense associated with lost and
unaccountable gas shall, based on an annual period, be recoverable through the
Company's Rider GCR up to a maximum of five (5) percent of the quantity of metered
gas, as provided under Commission Rule 7.5525, Lost and Unaccounted for Gas. Such
change shall be effective with the complete 12 month reporting period ending June 30,
2008.
11. Included as part of Exhibit A to this Settlement Agreement is a new gas conservation
program tariff (Rider CEE) that will be effective October 1, 2008. Atmos and the ACSC
Cities agree that Atmos will fund $1 million of the allowable expenses incurred annually,
with a customer rate component providing the remainder $1 million of funding. All
customer - supplied funds will, prior to the commencement of the program, be used toward
program implementation efforts and, upon implementation, be applied directly to the gas
conservation materials and supplies.
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
12. Atmos and the ACSC Cities agree that the Company's requested revision of its weather
normalization adjustment ( "WNA ") mechanism is appropriate, as modified by ACSC,
and should be approved as set forth in Exhibit A to this Settlement Agreement.
Specifically, the revision excludes non - weather sensitive commercial customers and
modifies the WNA mechanism to calculate the WNA adjustment based on weather
stations at a regional level rather than under the current practice of associating all
customers with a single weather location for purposes of determining the WNA
adjustment.
13. Atmos and the ACSC Cities agree that the three -year gas cost review process that is
currently in effect for the Mid -Tex division should be eliminated. Atmos and the ACSC
Cities further agree to collaborate to establish an alternate process wherein the prudence
of gas costs recovered through the Rider GCR can be addressed. Until an agreed upon
replacement mechanism has been established, the current gas cost review process shall
remain in effect, unless changed by order of the Commission.
14. It is the intention of the Signatories that the ACSC Cities receive the benefit of any
settlement agreement that Atmos enters into with other entities arising out of GUD No.
9672 (consolidated cases) or any associated appeals of GUD No. 9672. Therefore, Atmos
agrees that if the rates, revenues, terms and conditions, or benefits accruing to the settling
entity would be more beneficial to the ACSC Cities than the terms of this Settlement
Agreement, as determined by the ACSC Cities, such more favorable rates, revenues, terms
and conditions, or benefits shall additionally accrue to the ACSC Cities. Similarly, if the
Final Order in GUD No. 9672 or orders resulting from any associated appeals are
determined by the ACSC Cities to result in rates, revenues, terms and conditions, or
benefits that are more beneficial than the terms or this Settlement Agreement, such more
favorable terms, revenues, terms and conditions shall additionally accrue to the ACSC
Cities. However, the Signatories agree that the approval of the Rider RRM, the Rider
WNA, the Rider CEE, and the Rider GCR, as shown in Exhibit A hereto, shall not be
affected by the application of the "most favored nations" provisions contained in this
paragraph, it being the understanding and the intent of the Signatories hereto that such
tariffs shall continue in effectiveness according to their terms. The Signatories further
agree that the agreement reflected in paragraph 10 of this Settlement Agreement shall not
be affected by the application of the "most favored nations" provisions contained in this
paragraph.
15. Atmos agrees to reimburse the ACSC Cities previously incurred rate case expenses
within 30 days of the date the last ACSC City ordinance approving this Settlement
Agreement is entered, and any additional rate case expenses incurred through the date of
the entry of the last ACSC City ordinance, within 30 days of receipt of invoices.
16. Atmos agrees to reimburse the ACSC Cities for expenses associated with all 2003, 2004,
2005, and 2006 GRIP filings and related court appeals up to $567,213 within 30 days of
the date the last ACSC City ordinance approving this Settlement Agreement is entered.
17. Atmos and the ACSC Cities further agree that all expenses reimbursed pursuant to
paragraphs 15 and 16 of this Settlement Agreement, as well as all reasonable rate case
M
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
expenses directly incurred by Atmos in connection with the September 20, 2007
Statement of Intent filed on behalf of its Mid -Tex Division through February 29, 2008,
shall be recoverable through a surcharge to customer rates within the ACSC Cities. With
respect to the rate case expenses directly incurred by Atmos, the amount to be recovered
through the surcharge to customers within the ACSC Cities shall be determined on a pro
rata basis, consistent with the ACSC Cities' percentage of total Mid -Tex residential load
(52 %). The surcharge shall be recovered over a twelve month period beginning in April
of 2008.
18. Within 30 days of the date the last ACSC City ordinance approving this Settlement
Agreement is entered, Atmos and the ACSC Cities agree to file a Notice of Non -Suit or
Motion to Dismiss, whichever is applicable, in the following proceedings:
Cause No. D- 1- GN -06- 000337 (Consolidated), Atmos.Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas. This
case includes the following cases:
a. Cause No. D- 1- GN -06- 000333; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
b. Cause No. D- 1- GN -06- 000334; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
C. Cause No. D- 1- GN -06- 000335; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
d. Cause No. D- 1- GN -06- 000336; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
e. Cause No. D- 1- GN -06- 000332; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
f. Cause No. D- 1- GN -05- 002182; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
g. Cause No. D- 1- GN- 06- 004206; Atmos Cities Steering Committee v. The
Railroad Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause No. D- 1- GN -06- 001612; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause No. D- 1- GN -06- 001852; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause No. D- 1- GV -06- 000603; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause No. D- 1- GV -06- 000605; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court, Travis County, Texas.
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
Cause No. D- 1- GN -06- 004518; Atmos Cities Steering Committee v. The Railroad
Commission of Texas, In the 345th District Court, Travis County, Texas.
Cause Number: 03- 06- 00580 -CV; Atmos Energy Corporation, as successor by merger to
TXU Gas Company, Allied Coalition of Cities, and City of Dallas v. Railroad
Commission of Texas; In the Third. District Court of Appeals at Austin, Texas.
Cause No. D- 1- GN -07- 002871, Atmos Cities Steering Committee v. Railroad
Commission of Texas, In the 53rd District Court, Travis County, Texas.
Cause No. D- 1- GN -07- 002796, Atmos Energy Corporation v. Railroad Commission of
Texas, In the 250th District Court, Travis County, Texas.
Cause No. GV5- 00875; Allied Coalition of Cities v. The Railroad Commission of Texas,
In the 345th District Court, Travis County, Texas.
19. Atmos and the ACSC Cities agree that Atmos may make all future filings, including, but
not limited to, the annual RRM adjustment and any Statement of Intent filing with the
ACSC Cities on an electronic basis, rather than by paper copy. Electronic Filings shall
fulfill the requirements of TEx. UTIL. CODE §104.103. The appropriate ACSC Cities
representative shall provide a list of the ACSC Cities to Atmos by March 1, 2008, and
agrees to notify Atmos of any change in the ACSC Cities Coalition within 30 days of the
effective date of any such change in order for Atmos to maintain adequate service
records. Atmos further agrees to make paper copies of filings available to any ACSC
City that requests a copy.
20. Atmos and the ACSC Cities agree that the ACSC Cities should pass ordinances
approving the Settlement Agreement and establish rates and services for the ACSC Cities
consistent with those set forth in Exhibit A to this Settlement Agreement.
21. The Signatories agree that the terms of the Settlement Agreement are interdependent and
indivisible, and that if any ACSC City enters an order that is inconsistent with this
Settlement Agreement, then any Signatory may withdraw without being deemed to have
waived any procedural right or to have taken any substantive position on any fact or issue
by virtue of that Signatory's entry into the Settlement Agreement or its subsequent
withdrawal.
22. The Signatories agree that all negotiations, discussions and conferences related to the
Settlement Agreement are privileged, inadmissible, and not relevant to prove any issues
associated with the September 20, 2007 Statement of Intent filed by Atmos on behalf of
its Mid -Tex Division pursuant to Texas law.
23. 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 the ACSC Cities of an order
implementing this Settlement Agreement.
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
24. 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.
25. The Signatories agree that this Settlement Agreement may be executed in multiple
counterparts and may be filed with facsimile signatures.
7
SETTLEMENT AGREEMENT
STATE -MEINT OF INTENT PILED BY ATMOS ENERGY, CORP.,
114ID -TEX DIVISION ON SEPTEMBER 20, 2007 WITH "1'hlE, ACSC COALITION Or CI7'II S
Agreed to this 9 °i day of January, 2008.
ATMOS ENERGY CORP., MID -TEiX DIVISIOi
f
Jot A. Paris
President, Mid-Tex Division
SETTLEMENT AGREEMENT
STATEMENT OF INTENT FILED BY ATMOS ENERGY, CORP.,
MID -TEX DIVISION ON SEPTEMBER 20, 2007
Agreed to this 91h day of January, 2008.
ATTORNEY FOR ATMOS CITIES STEERING COMMITTEE,
WHOSE MEMBERS INCLUDE THE CITIES OF ABILENE,
ADDISON, ALLEN, ALVARADO, ANGUS, ANNA, ARGYLE,
ARLINGTON, BEDFORD, BELLMEAD, BENBROOK,
BEVERLY HILLS, BLUE RIDGE, BOWIE, BOYD,
BRIDGEPORT, BROWNWOOD, BUFFALO, BURKBURNETT,
BURLESON, CADDO MILLS, CARROLLTON, CEDAR HILL,
CELESTE, CELINA, CISCO, CLEBURNE, CLYDE, COLLEGE
STATION, COLLEYVILLE, COLORADO CITY, COMANCHE,
COOLIDGE, COPPELL, CORINTH, CORRAL CITY,
CRANDALL, CROWLEY, DALWORTHINGTON GARDENS,
DENISON, DESOTO, DUNCANVILLE, EASTLAND,
EDGECLIFF VILLAGE, EMORY, ENNIS, EULESS,
EVERMAN, FAIRVIEW, FARMERS BRANCH,
FARMERSVILLE, FATE, FLOWER MOUND, FOREST HILL,
FORT WORTH, FRISCO, FROST, GAINESVILLE, GARLAND,
GARRETT, GRAND PRAIRIE, GRAPEVINE, HALTOM CITY,
HARKER HEIGHTS, HASKELL, HASLET, HEATH, HEWITT,
HIGHLAND PARK, HIGHLAND VILLAGE, HONEY GROVE,
HURST, IOWA PARK, IRVING, JUSTIN, KAUFMAN, KEENS,
KELLER, KEMP, KENNEDALE, KERRVILLE, KILLEEN,
KRUM, LAKESIDE, LAKE WORTH, - LANCASTER,
LEWISVILLE, LINCOLN PARK, LITTLE ELM, MALAKOFF,
MANSFIELD, MCKINNEY, MELISSA, MESQUITE,
MIDLOTHIAN, MURPHY, NEWARK, NOCONA, NORTH
RICHLAND HILLS, NORTHLAKE, OAK LEAF, OVILLA,
PALESTINE, PANTEGO, PARIS, PARKER, PECAN HILL,
PLANO, PONDER, POTTSBORO, PROSPER, PUTNAM,
QUITMAN, RED OAK, RENO (PARKER COUNTY),
RICHARDSON, RICHLAND HILLS, ROANOKE, ROBINSON,
ROCKWALL, ROSCOE, ROWLETT, SACHSE, SAGINAW,
SEAGOVILLE, SHERMAN, SNYDER, SOUTHLAKE,
SPRINGTOWN, STAMFORD, STEPHENVILLE, SULPHUR
SPRINGS, SWEETWATER, TEMPLE, TERRELL, THE
COLONY, THROCKMORTON, TYLER, UNIVERSITY PARK,
VENUS, VERNON, WACO, WATAUGA, WAXAHACHIE,
WESTLAKE, WESTWORTH VILLAGE, WHITESBORO,
WHITE SETTLEMENT, WICHITA FALLS, WOODWAY, AND
WYLIE.
By:
Geoffrey ay
0
EXHIBIT A
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
TABLE OF CONTENTS
APPLICABLE TO:
Entire System
REVISION DATE:
February 1, 2008
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
UTILITY OPERATIONS
II. CITIES AND COUNTIES SERVED
III. DEFINITIONS
IV. GAS SERVICE RATES & RIDERS
Rate R - Residential Sales
Rate C - Commercial Sales
Rate I - Industrial Sales
Rate T - Transportation
Rider CT — Competitive Transport
Rider GCR - Gas Cost Recovery
Rider FF - Franchise Fee Adjustment
Rider SUR — Surcharges
Rate LEP — Line Extension Policy
Rate M - Miscellaneous Charges
Rider RA - Retention Adjustment
Rider TAX - Tax Adjustment
Rider WNA —Weather Normalization Adjustment
Rider RRM — Rate Review Mechanism
Rider CEE — Conservation and Energy Efficiency
V. SERVICE RULES AND REGULATIONS
10
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate R - Residential Sales
APPLICABLE TO:
Entire System
REVISION:
$1.2710 per Mcf
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RATE R - RESIDENTIAL SALES
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 Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 10.69 per month
Commodity Charge — All Mcf
$1.2710 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
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.
11
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
min_ rFx MVIRMN
RATE SCHEDULE:
Rate C - Commercial Sales
APPLICABLE TO:
Entire System
REVISION:
$ 0.7104 per Mcf
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RATE C - COMMERCIAL SALES
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf.
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 Mcf charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Bill
$ 20.28 per month
Commodity Charge - All Mcf
$ 0.7104 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
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.
12
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate I - Industrial Sales
APPLICABLE TO:
Entire System
REVISION:
$ 0.2200 per MMBtu
Next 3,500 MMBtu
DATE:
EFFECTIVE DATE:
$ 0.0493 per MMBtu
PAGE: 1 OF 2
February 1, 2008
RATE I - INDUSTRIAL SALES
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 following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 344.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2200 per MMBtu
Next 3,500 MMBtu
$ 0.1600 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0493 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
13
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate I - Industrial Sales
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 2
February 1, 2008
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
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.
14
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate T — Transportation
APPLICABLE TO:
Entire System
REVISION:
$ 0.2200 per MMBtu
Next 3,500 MMBtu
DATE:
EFFECTIVE DATE:
$ 0.0493 per MMBtu
PAGE: 1 OF 2
February 1, 2008
RATE T - TRANSPORTATION
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
$ 344.75 per month
First 0 MMBtu to 1,500 NIMBtu
$ 0.2200 per MMBtu
Next 3,500 MMBtu
$ 0.1600 per MMBtu
All NIMBtu over 5,000 MMBtu
$ 0.0493 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Rate Review Mechanism: Plus or Minus an amount for rates as 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.
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
15
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate T - Transportation
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 2
February 1, 2008
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 by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in 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 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.
16
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 3
October 1, 2008
Rider GCR - Gas Cost Recovery
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate 1, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated
in Section (b) below.
The amount due for gas cost (Section (a)) 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 C,
monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I,
monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to
recover actual costs.
The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor
(PCF) 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 I and
Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as
necessary to recover actual costs.
(a) Gas Cost
Method of Calculation
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) + Adjustments
(ADJ)
EGCF = Estimated cost of gas, including lost 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.
RF = Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of
interest, over the preceding twelve -month period ended June 30 and the Actual Gas Cost Billed
over that same twelve -month period by the estimated total residential, commercial, and industrial
sales for the succeeding October through June billing months.
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 NARUC Uniform System of Accounts,
including the net impact of injecting and withdrawing gas from 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 monthly 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.
17
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID�TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
.302805
Rate I - Industrial Service and Rate T - Transportation Service
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 3
October 1, 2008
Any amount remaining in the reconciliation balance after the conclusion of the period of
amortization will be maintained in the reconciliation balance and included in the collection of the
next RF.
Atmos Energy shall file annual reports with the Commission, providing by month the following
amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written
Off, Gas Cost Collected and Margin Collected.
TXS = Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by
the estimated total residential, commercial, and industrial sales.
ADJ = Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the
estimated total residential, commercial, and industrial sales.
(b) Pipeline Cost
Method of Calculation
Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class
listed below. The formula for the PCF is:
PCF = PP / S, where:
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
Allocation Factor D
Rate R - Residential Service
.634783
Rate C - Commercial Service
.302805
Rate I - Industrial Service and Rate T - Transportation Service
.062412
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.
S = Estimated Mcf or MMBtu for the rate class for the current billing month.
The PCF is calculated to the nearest 0.0001 cent.
18
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 3 OF 3
October 1, 2008
The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the
appropriate PCF. The Pipeline Cost is determined to the nearest whole cent.
19
EXHIBIT A
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 3
November 1, 2005
RIDER WNA — Weather Normalization Adiustment
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) 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.
Computation of Weather Normalization Adiustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one - hundredth cent
per Mcf by the following formula:
WNAFi = Ri
Where
(HSFi x (NDD -ADD) )
(BLi + (HSFi x ADD) )
— any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per 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
heating degree days by month 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.
Bli = base load sales for the ith 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
20
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA —Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
Austin
1.31
DATE:
EFFECTIVE DATE:
.0669
PAGE: 2 OF 3
November 1, 2008
.0185
18.08
and weather station as part of the RRM filing.
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNAi = WNAFi x q;,
Where q;j 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 Company will 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 factors 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 which the
WNA was applied in the 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 tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base Use /Heat Sensitivity (HSF) Factors
Residential Commercial
Base use HSF Base use HSF
Weather Station Mcf Mcf/HDD Mcf Mcf/HDD
Abilene
1.14
.0131
8.11
.0631
Austin
1.31
.0136
18.05
.0669
Dallas
1.57
.0185
18.08
.0925
Waco
1.20
.0138
10.97
.0606
Wichita
Falls
1.27
.0147
11.58
.0581
21
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 3 OF 3
November 1, 2008
Sample WNAFl Calculation:
(.0131 x (30-17) )
1533 per Mcf = 1.2267 x
(1.14 + (.0131 x 17) )
Where
i =
Ri =
HSFi =
NDD =
ADD =
Bli =
Residential Single Block Rate Schedule
1.2267 per MCF (Rate R - Final Order GUD No. 9670)
.0131 (Residential -Abilene Area)
30 HDD (Simple ten -year average of Actual HDD for Abilene Area — 9/15/06
—10/14/06)
17 HDD (Actual HDD for Abilene Area — 9/15/06 — 10/14/06)
1.14 Mcf (Residential - Abilene Area)
22
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanists
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 1 of 5
February 1, 2008
RIDER RRM — RATE REVIEW MECHANISM
Purpose:
This mechanism is designed to provide annual earnings transparency. If, through the implementation of the
provisions of this mechanism, it is determined that rates should be decreased or increased, then rates will be
adjusted accordingly in the manner set forth herein. The rate adjustments implemented under this
mechanism will reflect annual changes in the Company's cost of service and rate base. This adjustment
will be authorized for an Initial Implementation Period. With the conclusion of the final rate adjustment, if
any, for the Initial Implementation Period, each entity having original jurisdiction may revoke, amend, or
approve Subsequent Implementation Period(s) for, the mechanism.
Definitions
a) The Annual Evaluation Date shall be the date the Company will make its annual filing under this
mechanism. The Annual Evaluation Date shall be no later than March 1, of each year. This filing shall be
effective in electronic form where practicable. The initial filing shall be made March 31, 2008.
b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid -
Tex operating area and shared services operations. Audited Financial Data shall not require the schedules
and information provided under this tariff to undergo a separate financial audit by an outside auditing firm
similar to the Company's annual financial audit.
c) The Evaluation Period is defined as the twelve month period ending December 31, of each calendar
year. The initial Evaluation Period shall be calendar year 2007.
d) The Rate Effective Period is defined as the earlier of the twelve month period for which rates
determined under this mechanism will be in effect or subsequent rates are implemented.
e) Per Connection Basis is defined as the average number of connections during the Evaluation Period.
f) Initial Implementation Period is defined as the three (3) year period commencing with the Company's
filing under this mechanism for the calendar year 2007, effective October 1, 2008, and shall conclude with
the implementation of rate adjustments, if any, for the third Rate Effective Period.
g) Subsequent Implementation Period is defined as any three (3) year period after the conclusion of the
Initial Implementation Period.
h) Final Order is defined as the most recent order establishing the Company's latest effective rates for the
area in which the mechanism is implemented, and shall include municipal rate ordinances and resolutions.
Rate Review Mechanism
The Company shall file with each regulatory authority having original jurisdiction over the Company's
rates the schedules specified below for the Evaluation Period, with the filing to be made by the Annual
23
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 2 of 5
February 1, 2008
Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the
Company's Audited Financial Data, as adjusted, and provided in the same format as Atmos' rate filing with
municipalities on September 20, 2007, will include the following:
a) Company's actual gross plant in service, accumulated depreciation, accumulated deferred income
taxes, inventory, working capital, and other rate base components. The ratemaking treatments,
principles, findings and adjustments included in the Final Order will apply. Regulatory
adjustments due to prior regulatory rate base adjustment disallowances will be maintained where
applicable. Cash working capital will be calculated using the lead/lag days approved in the Final
Order.
b) The Company's depreciation expense, operating and maintenance expense, income taxes, and
taxes other than income taxes. Depreciation rates will be those approved in the Final Order, or the
rate most recently approved. All calculation methodologies will be those approved in the Final
Order, or in the most recent order addressing the methodology. In addition, the Company shall
exclude from operating and maintenance expense the type of expenses related to employee
expense accounts disallowed in the GUD No. 9670 Final Order.
c) Return on Equity (ROE) shall be maintained at 9.6 %.
d) Cost of debt will reflect actual cost. Capital structure will be the actual Evaluation Period ending
ratio of long -term debt and equity, with percentage equity not to exceed the percentage established
in the Final Order in G.U.D. No. 9670 (48.1% equity).
e) All applicable accounting and pro forma adjustments along with all supporting workpapers.
f) Pro -forma adjustments to update and annualize costs and revenue billing determinants for the Rate
Effective Period.
g) Pro -forma or other adjustments required to properly account for atypical, unusual, or nonrecurring
events.
h) Shared Services allocation factors may be recalculated each year based on the latest component
factors, but the methodology used will be that approved in the Final Order.
Calculation of Rate Adjustment
a) The Company shall provide additional schedules indicating the following revenue
deficiency /sufficiency calculations using the methodology accepted in the Final Order. These
schedules shall identify the rate adjustments necessary for both a true -up of revenue for the
Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result
of these rate adjustments shall be reflected in the proposed new rates to be established for the Rate
Effective Period. In calculating the required rate adjustments, such adjustments will be made pro -
ratably to the customer charge and usage charge based upon actual revenue generated, as adjusted
under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided,
24
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 3 of 5
February 1, 2008
however, that neither the Residential nor the Commercial customer charges may increase more
than 20% per year.
b) If Company's earnings during the Evaluation Period exceed 9.6% return on common equity, the
Company shall calculate an adjustment to rates to refund the revenue required to achieve a return
on equity of 9.6% for the Evaluation Period. If Company's earnings during the Evaluation Period
are below 9.6% return on common equity, the Company shall calculate an adjustment in rates to
collect the additional revenue required to increase its return on equity for the Evaluation Period to
9.6 %. The Company will calculate an adjustment for the Rate Effective Period to refund or collect
this difference.
c) The Company will adjust rates for the Rate Effective Period to include recovery of any known and
measurable changes to operating and maintenance costs including, but not limited to, all payroll
and compensation expense, all benefit expense, all pension expense, insurance costs, materials and
supplies, bad debt costs, all medical expense, transportation and building and lease costs for the
Rate Effective Period. Additionally, utility plant for the Rate Effective Period will be established
by using the Evaluation Period ending balances, including associated changes in depreciation and
amortization expense and taxes. In calculating the Company's known and measurable changes for
prospective RRM adjustment purposes, the following limitations will apply, on a Per Connection
Basis.
1. Operating and Maintenance expenses for the Rate Effective Period, cannot increase more
than 5% per connection per year without specific identification and justification. The
beginning Operation and Maintenance expense for the 2007 RRM filing (the initial filing)
will be $161 million.
2. Net plant investment for the Rate Effective Period cannot increase more than 5% per
connection per year without specific identification. However, in performing a cap test to
verify compliance, Company shall exclude any changes in net plant investment
associated with federal, state, or local mandates related to safety, compliance, or road
moves.
d) The Company also shall provide a schedule demonstrating the "proof of revenues" relied upon to
calculate the proposed rate for the Rate Effective Period. The proposed rates shall conform as
closely as is practicable to the revenue allocation principles approved in the Final Order.
Attestation
A sworn statement shall be filed by the Company's Chief Officer in Charge of Mid -Tex Operations
affirming that the filed schedules are in compliance with the provisions of this mechanism and are true and
correct to the best of his/her knowledge, information and belief. No testimony shall be filed.
25
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 4 of 5
February 1, 2008
Evaluation Procedures
The regulatory authority having original jurisdiction over the Company's rates shall have ninety (90) days
to review the Company's filed schedules. The Company will be prepared to provide supplemental
information as may be requested to ensure 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 ten (10) working days of the original request. The regulatory
authority may propose any adjustments it determines to be required to bring the schedules into compliance
with the above provisions.
During and following the ninety (90) day review period and a thirty (30) day response period, the Company
and the regulatory authority will work collaboratively and come to agreement on, the proposed adjustments
to the Company's schedule and proposed rates. Once agreement has been reached by the Company and the
regulatory authority, the regulatory authority shall authorize an increase or decrease to the Company's rates
so as to achieve the revenue levels indicated for both the Evaluation Period and Rate Effective Period. If,
at the end of the thirty (30) day response period, the Company and the regulatory authority have not
reached agreement on the proposed adjustments, the Company shall have the right to appeal the regulatory
authority's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeal, the
Company shall have the right to implement the proposed RRM rate adjustment, subject to refund.
If approved by the entity exercising original jurisdiction, the rates established pursuant to the Rate Review
Mechanism for the first Rate Effective Period shall be effective on October 1, 2008. Thereafter, rates
established pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as
provided herein, shall be effective on July 15 of each year.
Reconsideration and Anneal
Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under
Sections 102.00l(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007).
Notice
Notice of the annual Rate Review Mechanism filing shall be provided to all affected customers of the
Atmos Mid -Tex Division in accordance with the provisions of this section no later than forty-five (45) days
after the Company makes its annual filing pursuant to this tariff. Company may provide notice either by
mailing or otherwise delivering the notice with its billing statements. Notice by mail shall be presumed to
be complete three days after the date of deposit of the paper upon which such notice is written, enclosed in
a post -paid, properly addressed wrapper, in a post office or official depository under the care of the United
States Postal Service. 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;
26
EXHIBIT A
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 5 of 5
February 1, 2008
c) the service area or areas in which the proposed rate adjustment would apply;
d) the date the proposed rate adjustment was filed with the regulatory authority; and
e) the Company's address, telephone number and website where information concerning the
proposed rate adjustment may be obtained.
27
EXHIBIT A
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider CEE — Conservation & Energy Efficiency
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RIDER CEE — Conservation & Energy Efficiency
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 will fund a percentage of the
allowable expenses incurred annually, with a customer rate component providing the remainder of the
funding. Following is a high - 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 ($200.00) 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 that professional installation
capabilities are necessary, the parties will agree on labor assistance amounts.
Eligibility
Low Income — Low - income rate - payers that qualify for heating bill assistance through LIHEAP
agencies and all 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
holder that is or turns 65 years old in that year becomes eligible.
Funding
Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dollars ($1,000,000.00) 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 program administration. Program
administration expenses will be funded from the annual approved budget.
Program audits will be conducted and the results provided to any interested party within 120 days of the
end of each program year to determine effectiveness.
28
N
Schedule A
Page 1 of 2
ATMOS ENERGY CORP., MID -TEX DIVISION
REVENUE REQUIREMENTS BY SERVICE CLASS
TEST YEAR ENDING JUNE 30, 2007
EXHIBIT B TO SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY AND THE ACSC CITIES
Line
No.
Description
Current
Revenues
Proposed
Revenues'
Proposed
Change
Percent
Change
(a)
(b)
(c)
(d)
(e)
1
2
Residential (Base Revenue)
$
277,485,494
$ 280,887,686
$
3,402,192
1.23%
3
Residential (Rider GCR)
625,991,761
625,991,761
-
0.00%
4
Residential (Rider FF & Rider TAX)
52,488,696
52,686,332
197,637
0.38%
5
Total Residential
$
955,965,951
$ 959,565,779
$
3,599,828
0.38%
6
7
Commercial (Base Revenue)
$
59,666,416
$ 65,119,647
$
5,453,231
9.14%
8
Commercial (Rider GCR)
399,910,917
399,910,917
-
0.00%
9
Commercial (Rider FF & Rider TAX)
26,699,748
27,016,551
316,803
1.19%
10
Total Commercial
$
486,277,080
$ 492,047,115
$
5,770,035
1.19%
11
12
Industrialrf-ransportation (Base Revenue)
$
8,461,218
$ 9,057,219
$
596,001
7.04%
13
IndustrialfTransportation (Rider GCR)
33,616,178
33,616,178
-
0.00%
14
Industrial/Transportation (Rider FF & Rider TAX)
2,444,541
2,479,166
34,625
1.42%
15
Total Industrial/Transportation
$
44,521,937
$ 45,152,563
$
630,625
1.42%
16
17
Other Revenue (Base Revenue)
$
17,418,758
$ 17,418,758
$
-
0.00%
18
Other Revenue (Rider GCR)
-
-
-
0.00%
19
Other Revenue (Rider FF & Rider TAX)
1,011,966
1,011,966
-
0.00%
20
Total Other Revenue
$
18,430,724
$ 18,430,724
$
-
0.00%
21
22
Base Revenue
$
363,031,887
$ 372,483,310
$
9,451,423
2.60%
23
Rider GCR
1,059,518,856
1,059,518,856
-
0.00%
24
Rider FF & Rider TAX
82,644,951
83,194,015
549,064
0.66%
25
Total Operating Revenues
$
1,505,195,693
$ 1,515,196,181
$
10,000,488
0.66%
26
27 Note:
28 1 Proposed Revenues are the result of the application of the proposed rates to billing determinants
w
0
Schedule A
Page 2 of 2
ATMOS ENERGY CORP., MID -TEX DIVISION
REVENUE REQUIREMENTS
TEST YEAR ENDING JUNE 30, 2007
Settlement Proposal
Rider FF & Rider
Line No.
Description
Ref
Base Revenue
Rider GCR
TAX
Total
(a)
(b) (c)
(d)
(e)
(f)
(g)
1
2
Rider GCR Part A
Schedule H $
- $
976,143,417
$ -
$
976,143,417
3
Rider GCR Part B
Schedule 1
83,375,439
83,375,439
4
Total Rider GCR
$
1,059,518,856
$
1,059,518,856
5
6
Operation and Maintenance Expenses
Schedule F -1 $
150,891,394
$
150,891,394
7
8
Taxes Other than Income Taxes
Schedule F -5
20,756,918
$ 83,194,015
103,950,933
9
10
Depreciation and Amortization Expense
Schedule F -3
79,148,614
79,148,614
11
12
Interest on Customer Deposits
Schedule F -7
1,593,388
1,593,388
13
14
Rate Base
Schedule B $ 1,123,773,895
15
Rate of Return
Schedule G 7.79%
16
87,535,806
87,535,806
17 .
18
Income Taxes
Schedule F -6
32,556,703
32,556,703
19
20
Revenue Requirements
$
372,482,822 $
1,059,518,856
$ 83,194,015
$
1,515,195,693
21
22
Current Revenues
Schedule
$
1,505,195,693
23
24
Proposed Change
$
10,000,000
ATMOS ENERGY CORP., MID -TEX DIVISION
SUMMARY PROOF OF REVENUE AT PROPOSED RATES
TEST YEAR ENDING JUNE 30, 2007
Line Description Total
(a) (b)
Rate R
1 Rate Characteristics
2
Customer Charge
$10.69
3
4
Consumption Charge ($ /Mcf)
$1.2710
5
6
Rider GCR Part A
$7.5520
7
Rider GCR Part B
$0.5990
8
9
Billing Units (1):
10
Bills
17,144,647
11
Total MCF
76,798,906
12
13
Present Revenue:
14
Customer Charge
$
183,276,276
15
Consumption Charge
97,611,410
16
Base Revenue
$
280,887,686
17
Rider GCR Part A
579,988,302
18
Rider GCR Part B
46,003,459
19
Subtotal
$
906,879,447
20
Revenue Related Taxes
52,686,332
21
22
Total Proposed Revenue- Rate R
$
959,565,779
23
24 Note 1: See Billing Determinants Study for details.
31
WP J -4
Page 1 of 3
Reference
CcS
ccS
Schedule H
Schedule I
WP_J -1.1
WP_J -1.1
TARIFF FOR GAS SERVICE ATTACHMENT B ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
TABLE OF CONTENTS
APPLICABLE TO:
Entire System
REVISION DATE:
February 1, 2008
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
UTILITY OPERATIONS
11. CITIES AND COUNTIES SERVED
111. DEFINITIONS
IV. GAS SERVICE RATES & RIDERS
Rate R - Residential Sales
Rate C - Commercial Sales
Rate I - Industrial Sales
Rate T - Transportation
Rider CT — Competitive Transport
Rider GCR - Gas Cost Recovery
Rider FF - Franchise Fee Adjustment
Rider SUR — Surcharges
Rate LEP — Line Extension Policy
Rate M - Miscellaneous Charges
Rider RA - Retention Adjustment
Rider TAX - Tax Adjustment
Rider WNA —Weather Normalization Adjustment
Rider RRM — Rate Review Mechanism
Rider CEE — Conservation and Energy Efficiency
V. SERVICE RULES AND REGULATIONS
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate R - Residential Sales
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RATE R - RESIDENTIAL SALES
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 Mcf charges to the
amounts due under the riders listed below:
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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
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.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate C - Commercial Sales
APPLICABLE TO:
Entire System
REVISION:
$ 0.7104 per Mcf
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RATE C - COMMERCIAL SALES
Application
Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured
through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf.
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 Mcf charges to the
amounts due under the riders listed below:
Charge I
Amount
Customer Charge per Bill
$ 20.28 per month
Commodity Charge - All Mcf
$ 0.7104 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
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.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate I - Industrial Sales
APPLICABLE TO:
Entire System
REVISION:
$ 0.2200 per MMBtu
Next 3,500 MMBtu
DATE:
EFFECTIVE DATE:
$ 0.0493 per MMBtu
PAGE: 1 OF 2
February 1, 2008
RATE I - INDUSTRIAL SALES
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 following Customer and MMBtu charges to the
amounts due under the riders listed below:
Charge
Amount
Customer Charge per Meter
$ 344.75 per month
First 0 MMBtu to 1,500 NIMBtu
$ 0.2200 per MMBtu
Next 3,500 MMBtu
$ 0.1600 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0493 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: Plus or Minus an amount for rates as calculated in accordance with
Rider RRM.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Curtailment Overpull Fee
Upon notification by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Plaits Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate I - Industrial Sales
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 2
February 1, 2008
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
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.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate T — Transportation
APPLICABLE TO:
Entire System
REVISION:
$ 0.2200 per MMBtu
Next 3,500 MMBtu
DATE:
EFFECTIVE DATE:
$ 0.0493 per MMBtu
PAGE: 1 OF 2
February 1, 2008
RATE T - TRANSPORTATION
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
$ 344.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.2200 per MMBtu
Next 3,500 MMBtu
$ 0.1600 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.0493 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Rate Review Mechanism: Plus or Minus an amount for rates as 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
F F.
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 MIVIBtu of Customer's monthly Cumulative
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RATE SCHEDULE:
Rate T - Transportation
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 2
February 1, 2008
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 by Company of an event of curtailment or interruption of Customer's deliveries,
Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay
Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the
applicable Gas Day in the table entitled "Daily Price Survey."
Replacement Index
In the event the "midpoint" or "common" price for the Katy point listed in 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 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.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 3
October 1, 2008
Rider GCR - Gas Cost Recovery
Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R,
Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount
due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated
in Section (b) below.
The amount due for gas cost (Section (a)) 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 C,
monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I,
monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to
recover actual costs.
The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor
(PCF) 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 I and
Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as
necessary to recover actual costs.
(a) Gas Cost
Method of Calculation
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) + Adjustments
(ADJ )
EGCF = Estimated cost of gas, including lost 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.
RF = Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of
interest, over the preceding twelve -month period ended June 30 and the Actual Gas Cost Billed
over that same twelve -month period by the estimated total residential, commercial, and industrial
sales for the succeeding October through June billing months.
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 NARUC Uniform System of Accounts,
including the net impact of injecting and withdrawing gas from 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 monthly 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.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
.302805
Rate I - Industrial Service and Rate T - Transportation Service
DATE:
EFFECTIVE DATE:
PAGE: 2 OF 3
October 1, 2008
Any amount remaining in the reconciliation balance after the conclusion of the period of
amortization will be maintained in the reconciliation balance and included in the collection of the
next RF.
Atmos Energy shall file annual reports with the Commission, providing by month the following
amounts: Gas Cost Written Off, Margin Written Off, Tax and Other Written Off, Total Written
Off, Gas Cost Collected and Margin Collected.
TXS = Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by
the estimated total residential, commercial, and industrial sales.
ADJ = Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the
estimated total residential, commercial, and industrial sales.
(b) Pipeline Cost
Method of Calculation
Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class
listed below. The formula for the PCF is:
PCF = PP / S, where:
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:
Pi eline Cost Rate Class
Allocation Factor D
Rate R - Residential Service
.634783
Rate C - Commercial Service
.302805
Rate I - Industrial Service and Rate T - Transportation Service
.062412
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.
S = Estimated Mcf or MMBtu for the rate class for the current billing month.
The PCF is calculated to the nearest 0.0001 cent.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider GCR - Gas Cost Recovery
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 3 OF 3
October 1, 2008
The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the
appropriate PCF. The Pipeline Cost is determined to the nearest whole cent.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
heat sensitive factor for the ith schedule or classification calculated as the
DATE:
EFFECTIVE DATE:
heating degree days by month for the test year by schedule or classification
PAGE: 1 OF 3
November 1, 2008
NDD =
billing cycle normal heating degree days calculated as the simple ten -year
RIDER WNA — Weather Normalization Adjustment
Provisions for Adjustment
The base rate per Mcf (1,000,000 Btu) 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.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one- hundredth cent
per Mcf by the following formula:
WNAFi = Ri
Where
(HSFi x (NDD -ADD) )
(BLi + (HSFi x ADD) )
any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
V,NAFi = 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
heating degree days by month 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.
Bli =
base load sales for the ith 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
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
Austin
1.31
DATE:
EFFECTIVE DATE:
.0669
PAGE: 2 OF 3
November 1, 2008
.0185
18.08
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 qij
Where qi; 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 Company will 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 factors 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 which the
WNA was applied in the 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 tariff, the information required herein to be
filed with the entities exercising original jurisdiction shall be filed on March 1 of each year.
Base Use/Heat Sensitivity (HSF) Factors
Residential Commercial
Base use HSF Base use HSF
Weather Station Mcf Mcf/HDD Mcf Mcf /HDD
Abilene
1.14
.0131
8.11
.0631
Austin
1.31
.0136
18.05
.0669
Dallas
1.57
.0185
18.08
.0925
Waco
1.20
.0138
10.97
.0606
Wichita
Falls
1.27
.0147
11.58
.0581
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider WNA — Weather Normalization Adjustment
APPLICABLE TO:
Entire System
REVISION:
(1,14 + (.0131 x 17) )
DATE:
EFFECTIVE DATE:
i =
PAGE: 3 OF 3
November 1, 2008
1.2267 per MCF (Rate R - Final Order GUD No. 9670)
HSFi =
Sample WNAF1 Calculation:
(.0131 x (30 -17) )
.1533 per Mcf =
1.2267 x
(1,14 + (.0131 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
—10/14/06)
ADD =
17 HDD (Actual HDD for Abilene Area — 9/15/06 — 10/14/06)
Bli =
1.14 Mcf (Residential - Abilene Area)
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 1 of 5
February 1, 2008
RIDER RRM — RATE REVIEW MECHANISM
Purpose:
This mechanism is designed to provide annual earnings transparency. If, through the implementation of the
provisions of this mechanism, it is determined that rates should be decreased or increased, then rates will be
adjusted accordingly in the manner set forth herein. The rate adjustments implemented under this
mechanism will reflect annual changes in the Company's cost of service and rate base. This adjustment
will be authorized for an Initial Implementation Period. With the conclusion of the final rate adjustment, if
any, for the Initial Implementation Period, each entity having original jurisdiction may revoke, amend, or
approve Subsequent Implementation Period(s) for, the mechanism.
Definitions
a) The Annual Evaluation Date shall be the date the Company will make its annual filing under this
mechanism. The Annual Evaluation Date shall be no later than March 1, of each year. This filing shall be
effective in electronic form where practicable. The initial filing shall be made March 31, 2008.
b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid -
Tex operating area and shared services operations. Audited Financial Data shall not require the schedules
and information provided under this tariff to undergo a separate financial audit by an outside auditing firm
similar to the Company's annual financial audit.
c) The Evaluation Period is defined as the twelve month period ending December 31, of each calendar
year. The initial Evaluation Period shall be calendar year 2007.
d) The Rate Effective Period is defined as the earlier of the twelve month period for which rates
determined under this mechanism will be in effect or subsequent rates are implemented.
e) Per Connection Basis is defined as the average number of connections during the Evaluation Period.
f) Initial Implementation Period is defined as the three (3) year period commencing with the Company's
filing under this mechanism for the calendar year 2007, effective October 1, 2008, and shall conclude with
the implementation of rate adjustments, if any, for the third Rate Effective Period.
g) Subsequent Implementation Period is defined as any three (3) year period after the conclusion of the
Initial Implementation Period.
h) Final Order is defined as the most recent order establishing the Company's latest effective rates for the
area in which the mechanism is implemented, and shall include municipal rate ordinances and resolutions.
Rate Review Mechanism
The Company shall file with each regulatory authority having original jurisdiction over the Company's
rates the schedules specified below for the Evaluation Period, with the filing to be made by the Annual
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER: Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 2 of 5
February 1, 2008
Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the
Company's Audited Financial Data, as adjusted, and provided in the same format as Atmos' rate filing with
municipalities on September 20, 2007, will include the following:
a) Company's actual gross plant in service, accumulated depreciation, accumulated deferred income
taxes, inventory, working capital, and other rate base components. The ratemaking treatments,
principles, findings and adjustments included in the Final Order will apply. Regulatory
adjustments due to prior regulatory rate base adjustment disallowances will be maintained where
applicable. Cash working capital will be calculated using the lead/lag days approved in the Final
Order.
b) The Company's depreciation expense, operating and maintenance expense, income taxes, and
taxes other than income taxes. Depreciation rates will be those approved in the Final Order, or the
rate most recently approved. All calculation methodologies will be those approved in the Final
Order, or in the most recent order addressing the methodology. In addition, the Company shall
exclude from operating and maintenance expense the type of expenses related to employee
expense accounts disallowed in the GUD No. 9670 Final Order.
c) Return on Equity (ROE) shall be maintained at 9.6 %.
d) Cost of debt will reflect actual cost. Capital structure will be the actual Evaluation Period ending
ratio of long -term debt and equity, with percentage equity not to exceed the percentage established
in the Final Order in G.U.D. No. 9670 (48.1% equity).
e) All applicable accounting and pro forma adjustments along with all supporting workpapers.
f) Pro -forma adjustments to update and annualize costs and revenue billing determinants for the Rate
Effective Period.
g) Pro -forma or other adjustments required to properly account for atypical, unusual, or nonrecurring
events.
h) Shared Services allocation factors may be recalculated each year based on the latest component
factors, but the methodology used will be that approved in the Final Order.
Calculation of Rate Adjustment
a) The Company . shall provide additional schedules indicating the following revenue
deficiency /sufficiency calculations using the methodology accepted in the Final Order. These
schedules shall identify the rate adjustments necessary for both a true -up of revenue for the
Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result
of these rate adjustments shall be reflected in the proposed new rates to be established for the Rate
Effective Period. In calculating the required rate adjustments, such adjustments will be made pro -
ratably to the customer charge and usage charge based upon actual revenue generated, as adjusted
under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided,
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 3 of 5
February 1, 2008
however, that neither the Residential nor the Commercial customer charges may increase more
than 20% per year.
b) If Company's earnings during the Evaluation Period exceed 9.6% return on common equity, the
Company shall calculate an adjustment to rates to refund the revenue required to achieve a return
on equity of 9.6% for the Evaluation Period. If Company's earnings during the Evaluation Period
are below 9.6% return on common equity, the Company shall calculate an adjustment in rates to
collect the additional revenue required to increase its return on equity for the Evaluation Period to
9.6 %. The Company will calculate an adjustment for the Rate Effective Period to refund or collect
this difference.
c) The Company will adjust rates for the Rate Effective Period to include recovery of any known and
measurable changes to operating and maintenance costs including, but not limited to, all payroll
and compensation expense, all benefit expense, all pension expense, insurance costs, materials and
supplies, bad debt costs, all medical expense, transportation and building and lease costs for the
Rate Effective Period. Additionally, utility plant for the Rate Effective Period will be established
by using the Evaluation Period ending balances, including associated changes in depreciation and
amortization expense and taxes. In calculating the Company's known and measurable changes for
prospective RRM adjustment purposes, the following limitations will apply, on a Per Connection
Basis.
I . Operating and Maintenance expenses for the Rate Effective Period, cannot increase more
than 5% per connection per year without specific identification and justification. The
beginning Operation and Maintenance expense for the' 007 RRM filing (the initial filing)
will be $161 million.
2. Net plant investment for the Rate Effective Period cannot increase more than 5% per
connection per year without specific identification. However, in performing a cap test to
verify compliance, Company shall exclude any changes in net plant investment
associated with federal, state, or local mandates related to safety, compliance, or road
moves.
d) The Company also shall provide a schedule demonstrating the "proof of revenues" relied upon to
calculate the proposed rate for the Rate Effective Period. The proposed rates shall conform as
closely as is practicable to the revenue allocation principles approved in the Final Order.
Attestation
A sworn statement shall be filed by the Company's Chief Officer in Charge of Mid -Tex Operations
affirming that the filed schedules are in compliance with the provisions of this mechanism and are true and
correct to the best of his/her knowledge, information and belief. No testimony shall be filed.
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 4 of 5
February 1, 2008
Evaluation Procedures
The regulatory authority having original jurisdiction over the Company's rates shall have ninety (90) days
to review the Company's filed schedules. The Company will be prepared to provide supplemental
information as may be requested to ensure 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 ten (10) working days of the original request. The regulatory
authority may propose any adjustments it determines to be required to bring the schedules into compliance
with the above provisions.
During and following the ninety (90) day review period and a thirty (30) day response period, the Company
and the regulatory authority will work collaboratively and come to agreement on, the proposed adjustments
to the Company's schedule and proposed rates. Once agreement has been reached by the Company and the
regulatory authority, the regulatory authority shall authorize an increase or decrease to the Company's rates
so as to achieve the revenue levels indicated for both the Evaluation Period and Rate Effective Period. 1f,
at the end of the thirty (30) day response period, the Company and the regulatory authority have not
reached agreement on the proposed adjustments, the Company shall have the right to appeal the regulatory
authority's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeal, the
Company shall have the right to implement the proposed RRM rate adjustment, subject to refund.
If approved by the entity exercising original jurisdiction, the rates established pursuant to the Rate Review
Mechanism for the first Rate Effective Period shall be effective on October 1, 2008. Thereafter, rates
established pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as
provided herein, shall be effective on July 15 of each year.
Reconsideration and Appeal
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).
Notice
Notice of the annual Rate Review Mechanism filing shall be provided to all affected customers of the
Atmos Mid -Tex Division in accordance with the provisions of this section no later than forty-five (45) days
after the Company makes its annual filing pursuant to this tariff. Company may provide notice either by
mailing or otherwise delivering the notice with its billing statements. Notice by mail shall be presumed to
be complete three days after the date of deposit of the paper upon which such notice is written, enclosed in
a post -paid, properly addressed wrapper, in a post office or official depository under the care of the United
States Postal Service. 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;
TARIFF FOR GAS SERVICE ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider RRM — Rate Review Mechanism
APPLICABLE TO:
Entire Mid -Tex Division
REVISION
DATE:
EFFECTIVE DATE:
PAGE: 5 of 5
February 1, 2008
c) the service area or areas in which the proposed rate adjustment would apply;
d) the date the proposed rate adjustment was filed with the regulatory authority; and
e) the Company's address, telephone number and website where information concerning the
proposed rate adjustment may be obtained.
TARIFF FOR GAS SERVICE
ATMOS ENERGY CORP.,
MID -TEX DIVISION
RIDER:
Rider CEE — Conservation & Energy Efficiency
APPLICABLE TO:
Entire System
REVISION:
DATE:
EFFECTIVE DATE:
PAGE: 1 OF 1
February 1, 2008
RIDER CEE — Conservation & Energy Efficiency
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 will fund a percentage of the
allowable expenses incurred annually, with a customer rate component providing the remainder of the
funding. Following is a high - 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 ($200.00) 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 that professional installation
capabilities are necessary, the parties will agree on labor assistance amounts.
Eligibility
Low Income — Low - income rate - payers that qualify for heating bill assistance through LIHEAP
agencies and all 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
holder that is or turns 65 years old in that year becomes eligible.
Funding
Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will
contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one
million dollars ($1,000,000.00) 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 program administration. Program
administration expenses will be funded from the annual approved budget.
Program audits will be conducted and the results provided to any interested party within 120 days of the
end of each program year to determine effectiveness.
TOWN OF WESTLAKE, TEXAS
MINUTES OF THE
TOWN OF WESTLAKE, TEXAS
BOARD OF ALDERMEN PRE -BOARD MEETING
January 14, 2008
PRESENT: Mayor Scott Bradley and Aldermen Larry Corson, April Gallagher, Don Redding,
Pete Steger, and Bob Timmerman (arrived at 5:15 p.m.)
ABSENT: None.
STAFF PRESENT: Town Manager Joe Hennig, and Town Secretary Kim Sutter
1. CALL TO ORDER.
Mayor Bradley called the pre -board meeting to order at 5:04 p.m.
2. EXECUTIVE SESSION.
Mayor Bradley recessed the pre -board meeting of the Town of Westlake Board of Aldermen
meeting at 5:04 p.m., as he read the following item to be discussed in executive session:
A. The Board will conduct a closed session under Texas Government Code section 551.074 to
discuss personnel matters.
1. . Strategic Government Resources
B. The Board will conduct a closed session under Texas Government Code section 557.087 to
discuss economic development negotiations.
Mayor Bradley convened the executive session at 5:05 p.m. The executive session
adjourned at 5:44 p.m.
The Board reconvened into regular session at 5:45 p.m.
Town of Westlake Board of Aldermen Page 2 of 2
Pre -Board Meeting
January 14, 2008
4. REVIEW OF REGULAR AGENDA ITEMS.
Interim Town Manager Hennig reviewed the regular agenda with the Board.
Discussion ensued with regard to the proposed change to the transfer boundaries for Westlake
Academy and the reasons behind the proposed change.
Interim Town Manager Hennig addressed the Board regarding the First Southwest report regarding
debt service coverage. Mr. Hennig advised the Board that the report would be presented at the
regular Board meeting.
5. TOWN MANAGER'S REPORT.
No report was given.
6. ADJOURNMENT.
There being no further business to come before the Board, Mayor Bradley declared the pre -
board meeting adjourned at 6:00 p.m.
APPROVED BY THE BOARD OF ALDERMEN ON JANUARY 28, 2008.
Scott Bradley, Mayor
ATTEST:
Kim Sutter, TRMC, Town Secretary
MINUTES OF THE
TOWN OF WESTLAKE, TEXAS
BOARD OF ALDERMEN REGULAR MEETING
January 14, 2008
PRESENT: Mayor Scott Bradley and Aldermen Larry Corson, Kevin Maynard, Don Redding,
Pete Steger, and Bob Timmerman.
ABSENT: None.
OTHERS PRESENT: Interim Town Manager Joe Hennig, Town Attorney Stan Lowry,
Town Secretary Kim Sutter, DPS Director Don Wilson, Facilities and
Recreation Director Troy Meyer, and Finance Director Debbie Piper.
1. CALL TO ORDER.
Mayor Bradley called the meeting to order at 7:01 p.m.
2. CITIZENS' PRESENTATIONS.
Ms. Barbara Brizuela, 2600 J.T. Ottinger Road, Westlake, addressed the Board regarding the
editorial published in the Star- Telegram on January 14, 2008, and responded to statements
made in the article.
Mr. Jim Billington, 1823 Broken Bend, Westlake, addressed the Board regarding the
fundraising efforts of the Westlake Academy Foundation and financing options for the
construction of the Arts and Sciences Center building. Mr. Billington expressed his
disappointment with the efforts and the current consideration for financing the construction
of the building.
Mr. Tim Brittan, 1925 N. Pearson Lane, Westlake, requested clarification on the purpose of
Texas Student Housing Authority and its ability to provide $500,000 for the construction of
the Arts and Sciences Center building.
Town of Westlake Board of Aldermen
Regular Meeting
January 14, 2008
Page 2 of 6
Mayor Bradley explained the Texas Student Housing Authority's operations and recalled
that he had previously met with Mr. Brittan to discuss the matter, and offered to meet again
with Mr. Brittan at Mr. Brittan's convenience to further discuss the Texas Student Housing
Authority.
3. ADMINISTER OATH OF OFFICE AND PRESENT CERTIFICATE OF
APPOINTMENT TO NEWLY APPOINTED ALDERMAN KEVIN MAYNARD.
Town Secretary Sutter administered the Oath of Office to newly- appointed Alderman Kevin
Maynard and presented the certificate of appointment issued by Mayor Bradley.
4. HEAR REPORT FROM FIRST SOUTHWEST COMPANY REGARDING TOWN'S
DEBT SERVICE COVERAGE.
Interim Town Manager Hennig provided a brief background and advised that this item is a
follow -up to Board discussion held on December 15, 2007, concerning possible funding
options for the construction of the Arts and Sciences Center building. Mr. Hennig
introduced Mr. Jason Hughes of First Southwest Company to present his findings
concerning the Town's overall debt coverage and the possibility of monetizing pledges
received by the Westlake Academy Foundation for the construction of the building.
Mr. Jason Hughes of First Southwest Company and Leroy Grawunder of McCall, Parkhurst
and Horton were present for the presentation and to address questions from the Board.
Mr. Hughes advised the Board he has reviewed the Town's last three years of audited
financial statements, the budget, and the 10 year capital plan to compile a report
summarizing the Town's outstanding debt, the revenues intended for debt service
repayment, and the estimated debt coverage if the Board should decide to issue Certificates
of Obligation (CO). Mr. Hughes presented debt service coverage scenarios for the amounts
of $1.0 mm and $1.5 mm, insured and uninsured, and advised that the shortfall to cover the
debt associated with the potential CO issuance does not take into consideration the pledges
received by the Westlake Academy Foundation. In closing, Mr. Hughes stated that he felt
the Town could sell and provide debt service coverage for the issuance of CO's in the
amount of $1 mm without incurring the risk of a property tax, even assuming that no
pledges are ever collected.
Mr. Hughes addressed questions from the Board regarding the presentation.
5. CONSIDER A RESOLUTION APPROVING A BUDGET AMENDMENT FOR
PAYMENT OF AN ADDITIONAL AMOUNT DUE TO TXDOT REGARDING THE
FM 1938 BRIDGE ENHANCEMENTS.
Mayor Bradley introduced the item and provided a brief background summary concerning the
item.
Town of Westlake Board of Aldermen
Regular Meeting
January 14, 2008
Page 3 of 6
MOTION: Alderman Steger made a motion to approve Resolution No. 08 -01, approving
a budget amendment for payment of an additional amount due to TxDOT
regarding the FM 1938 Bridge enhancements. Alderman Corson seconded
the motion. The motion carried by a vote of 5 -0.
6. CONSIDER APPROVAL OF THE 2008 BOARD OF ALDERMEN MEETING
SCHEDULE.
Mayor Bradley introduced the item and asked for a motion.
MOTION: Mayor Pro Tern Redding made a motion to approve the 2008 Board of
Aldermen meeting schedule as presented. Alderman Steger seconded the
motion. The motion carried by a vote of 5 -0.
7. CONSIDER A RESOLUTION AUTHORIZING AN AGREEMENT WITH NIGHT
LINE JANITORIAL SERVICES INC. FOR JANITORIAL SERVICES AT THE
WESTLAKE CIVIC CAMPUS.
Facilities and Recreation Director Meyer addressed the Board regarding the item. Mr. Meyer
advised the Board that a day porter service has been added to the agreement.
Alderman Corson expressed his concern with regard to the low number of bids received and
the overall bidding process.
Interim Town Manager Hennig stated that the remote location of the campus may have been a
consideration.
There being no further discussion, Mayor Bradley requested a motion.
MOTION: Alderman Corson made a motion to approve Resolution No. 08 -02,
authorizing an agreement and related change order with Night Line Janitorial
Services, Inc. Alderman Maynard seconded the motion. The motion carried
by a vote of 5 -0.
8. HEAR STATUS REPORT ON CONSTRUCTION OF PERFORMING ARTS AND
SCIENCES CENTER BUILDING.
Interim Town Manager Hennig stated that following the December 15, 2007, meeting, he met
with Mr. Michael Bennett of Gideon Toal to evaluate options aimed at reducing the cost of the
construction of the building. Mr. Hennig advised that he hopes to have a revised cost estimate
by the next meeting to present to the Board. If acceptable cost estimates and construction
techniques are received, the Town would anticipate the following timeline:
Date
Description
Mid - February 2008
Request for Qualifications (RFQ)
Mid -March 2008
Value engineering
Town of Westlake Board of Aldermen
Regular Meeting
January 14, 2008
Page 4 of 6
Early May 2008
Final numbers and decide on financing plan
Award contracts and sign construction documents
Mid June 2008
Construction to begin
June 2009
Complete project
9. CONSENT AGENDA.
Mayor Bradley introduced the item and asked for a motion.
A. Review and approve minutes of the Board of Aldermen pre -board and regular meetings
held on December 10, 2007.
B. Review and approve minutes of the Board of Aldermen workshop held on December 15,
2007.
C. Review and approve any outstanding bills.
MOTION: Alderman Steger made a motion to approve the consent agenda as presented.
Alderman Timmerman seconded the motion. The motion carried by a vote of
5 -0.
10. EXECUTIVE SESSION
No executive session was held.
11. RECONVENE MEETING.
12. EXECUTIVE SESSION ACTION.
13. STAFF REPORTS.
Facilities and Recreation Director Meyer addressed the Board regarding the following items:
- Tree Farm Project: 40 trees will be planted in 20 gallon containers on Saturday,
January 26, 2008, and placed on the far west side of the civic campus with the
expectation to plant the trees around the Town in open spaces. Mr. Meyer
recognized Westlake resident and Boy Scout Hayden Anderson for his efforts
associated with the Tree Farm project. Additionally, Maguire Partners has agreed to
donate the irrigation system needed for the trees.
- Tree Mitigation: As a result of the recently approved Terra Bella project, a total of
four evergreen trees will be planted on the town campus green area and the
playground.
- Arbor Days: Addressed the Board regarding the need for volunteers to serve on the
committee and assist with the planning of the annual event. There was also
Town of Westlake Board of Aldermen
Regular Meeting
January 14, 2008
Page 5 of 6
discussion regarding the possibility of changing the date of the event from October
to April.
14. TOWN MANAGER'S REPORT.
Interim Town Manager Hennig addressed the Board regarding the following items:
- Town Staff: Expressed his appreciation to the Town staff for their efforts and
quality work.
- FM 1938: Under the current schedule, the construction contract will be let in
September 2008, with construction to begin January 2009.
- Oil and Gas Drilling Ordinance: Tentatively scheduled for the January 28, 2008,
Board of Aldermen pre -board meeting.
15. MAYOR AND ALDERMEN REPORTS / COMMENTS.
Alderman Corson inquired as to the status of the discussion regarding the secondary water
source. He also expressed his concern with the appearance of the SH 114 corridor,
specifically the appearance, height, and visibility of the new hotel in Trophy Club. Mr.
Corson asked that the Town consider working together with Trophy Club staff or officials to
discuss the idea of land use applications and coordinating decisions that affect the SH 114
corridor. Furthermore, Mr. Corson advised that the he would like to move forward with
consideration of prohibiting the use of handheld cell phones in school zones.
Alderman Steger inquired as to the status of the red light camera installation. Mr. Steger
also stated that he feels the Board has exercised due diligence in the process of the
construction of the proposed Arts and Sciences Center building as it relates to avoiding the
need for a property tax.
Interim Town Manager Hennig responded that staff recently met with Traffipax, the red
light camera vendor, and the vendor is conducting an initial evaluation of intersections along
the SH 114 corridor to determine the need for cameras. Equipment is expected to be
installed by the late spring /early summer at the selected intersections.
Alderman Timmerman reminded the Board of its desire to discuss the complaint /arbitration
policy and conducting exit interviews with staff and families who have chosen to leave the
Academy. Mr. Timmerman also expressed his desire to move forward with discussions
regarding a temporary trails system.
Alderman Maynard expressed his appreciation for the comments and overwhelming
encouragement with regard to his appointment to serve on the Board. Mr. Maynard read his
acceptance speech, a copy of which is attached to these minutes.
Town of Westlake Board of Aldermen
Regular Meeting
January 14, 2008
Page 6 of 6
Mayor Bradley reminded all residents of the upcoming spring cleanup, and advised that a
dumpster will be located on the campus sometime in the spring so that residents may discard
unwanted items.
Mayor Bradley announced that the transfer of the I.O.O.F. cemetery to the Town has now
been completed. He stated that the transfer was facilitated by the friendship between the
former town manager, Trent Petty, and Mr. Dick Fanning.
16. ADJOURNMENT.
There being no further business, Mayor Bradley adjourned the meeting at 8:37 p.m.
APPROVED BY THE BOARD OF ALDERMEN ON JANUARY 28, 2008.
Scott Bradley, Mayor
ATTEST:
Kim Sutter, TRMC, Town Secretary
Town of Westlake
Maynard Alderman Acceptance
January 14, 2008
First of all, I would like to thank everyone for all of the gracious
comments and overwhelming encouragement. I feel honored to be
appointed to this position. It is a tremendous responsibility, and an
opportunity to contribute to the future of this Town and to this
incredible academic institution. It is my pleasure to be able to strike a
balance between the Town, the School, the Foundation, and the Board.
The next five months are critical. In fact, that is an understatement.
We face several daunting tasks and it is crucial ... imperative, that we
work together. We have the responsibility to hire a Town Manager,
replace the Head of School, issue bonds, break ground on the Arts and
Sciences building, and expand Precinct Line Road.
I hope we'll be able to take all the greatness that this town has
already created, and build on it. We have one of the highest median
home prices in the nation. We have one of only five PYP and MYP
International Baccalaureate World Schools. Clearly, we enjoy one of
the finest family- oriented neighborhoods in the country. We are home
to one of the top -rated country clubs in the nation. Beneath this town
lie some of the richest natural resources in the world. We need to use
it all to Westlake's unique advantage.
There will be no such thing as over - communication. In fact, over -
communication and respectful decisiveness is the only way we will be
able to accomplish our objectives. Moreover and simply, we must
communicate openly with each other, with all the same passion,
integrity, courage, and willingness to share our best intelligence that
every one of us demonstrates daily as individuals standing up for our
families, friends and faith. Where we need compromise, we must come
to gutsy solutions; adapt our common goals grounded in our
community's best interest, and move on promptly. Sometimes that is
very difficult to do, but we must be willing to "Adopt and Go" in order
to move forward.
How we utilize all of our assets in harmony within the next few years
to make this Town the best of the best is key. While that may be
obvious, if not trite, it will demonstrate how Westlake, Texas is a model
for doing the right thing right in perfect harmony ... and getting the
right results. In this community, we have smart, dedicated, and
talented individuals whose expertise and attention we should
proactively command. As a Board member, I wish to respond
apolitically as a servant - leader to the needs and concerns of the
constituents of Westlake. You all have a right to know what each one
of us wants for this Town and how we intend to achieve it.
I believe in Town -Hall -style events where we can openly
communicate with each other. I look forward to being challenged with
the tough questions and vow to all you stakeholders to become full of
your wisdom and ideas. To take this community into the distinct future
it so rightfully deserves takes something rather simple. It's well -known
as teamwork. We'll need to adopt a common playbook so that we can
show up with all the players on the line of scrimmage executing the
same play as flawlessly as possible. We need to score by executing first
down after first down and not be penalized by the "Hail Mary" that gets
called back for holding on the home team.
And speaking of a world -class team working from the same world -
renowned playbook, I am proud that my children can attend the
Shining School on the Hill and have the privilege of living in a beautiful
setting where it is as clear as an autumn sky. I pledge to be open, fair
and honest, and to represent this town to the best of my ability.
Thank you ALL for your trust and confidence.
TOWN OF WESTLAKE
Invoices Received: 01/07/08 thru 01/20/08
For Review by Board on 01/28/08
!VENDOR
Tarrant County Criminal Courts
• ICE
Bonilla
AMOUNT
1,000.00
FUND
100
ACCT
22500
DEPT
0
DESCRIPTION
County Cash Bond Refund
Tarrant County Criminal Courts
Gromer
1,000.00
100
22500
0
County Cash Bond Refund
Tarrant County Criminal Courts
Koehler
500.00
100
22500
0
County Cash Bond Refund
Tarrant County Criminal Courts
Matthews
500.00
100
22500
0
County Cash Bond Refund
Tarrant County Criminal Courts
Pourfakhrai
2,500.00
100
225001
0
County Cash Bond Refund
Tarrant County Criminal Courts
Vendel
1,500.00
100
22500
0
County Cash Bond Refund
Cash Bond Totals
7,000.00
A -1 Copier Tec Inc.
43931
247.50
100
44300
11
100% Quarterly Copy Charge DP3520 - Admin
AT &T 817 - 163 -1736
01012008
175.56
100
45315
11
T1 Internet Line for Town Offices (01/01/08 thru 01/31/08)
AT &T 817- 430 - 0941 -2
12292007
584.34
100
45305
11
Town Telephone Service 70% of Town's 50% allocation
Boyle & Lowry 1
12272
4,093.51
100
43310
11
Legal Fees - Town
Cad & Graphic Supply
3570
79.65
100
46105
11
4/20# Ink jet bond for plotter (Big Tex)
Graham Associates
8014
4,081.00
100
43215
11
Town Engineering Fees - Stanton plat, Terra Bella, Fidelity & Solana
Joe C. Hennig
ER011608
23.13
100
458201
11
Lunch w /Michelle Corson re: Public Arts Committee plans
Joe C. Hennig
ER011608
26.00
100
45820
11
Lunch w /Chief Hafner & Chief Wilson re: public safety policies
Kim Sutter
CRO11408
28.97
100
46106
11
Hospitality items for January 14, 2008 board meeting
Marriott International
337H103439
807.00
100
43520
11
April Gallagher's going away reception
Office Depot
413710213 -001
8.99
100
46105
11
Ativa line cord 25'
Office Depot
414393387 -001
60.16
100
46105
11
2 cases /copy paper
Office Depot
414684140 -001
119.69
100
46105
11
Laser jet cartridge
Office Depot
415181121 -001
20.32
100
46105
11
4 cases of water
Office Depot
415416660 -001
51.50
100
46105
11
Ativa Shredder & lubricant
Office Depot
415667658 -001
14.02
100
46105
11
2 sets of plastic keytag /rack
Office Depot
415898809 -001
119.69
100
46105
11
Laserjet cartiridge for printer
Purchase Power 1
12212007
332.95
100
46120
11
Town Postage
Todd Wood
ER011608
5.05
100
45825
11
Mileage to /from Academy (pool car unavailable)
Todd Wood
ER011608
231.13
100
46106
11
Hospitality Items from Sam's
Total Administration
11,110.16
Strategic Government Resources
2331
47.20
100
45830
12
Registration for Eddie Edwards for November 7 class on sexual harrassment
Valero 06
01152008
40.81
100
46215
12
Building Official Vehicle Fuel
Total Building
88.01
A -1 Copier Tec Inc.
43932
105.20
100
44300
13
40% Quarterly Copy Charge - Sharp 275 - Secretary
Total Town Secretary
105.20
AT &T 825.147.526
01072008
66.20
100
45310
14
Mobile Phone (Ambulance & Fire Truck)
CLIA Laboratory Program
12222077
150.00
100
46150
14
CLIA Lab & Certificate fee (06120/08 thru 06/19/2010)
Cummins Southern Plains
007 -36782
100.00
100
46215
14
Fuel Filters, Oil Filters, Air Cleaner for firetruck
DFW Communications
01172008
(17.52)
100
44221
14
Credit for invoice #30701899
Flower Mound Fire Dept.
01132008
97.20
100
46130
14
20 /Protocol Field Guide Books
Grainger
9531419472
69.95
46215
14
Rivet Nut & Rivet Nut Tool
Home Depot
1573712
24.78
M1O
44212
14
Gas grill regulator, paint brush & contact cement
Home Depot
6573954
48.94
44210
14
Garden hose & nozzle
Keller (City of)
001 - 2008200 -002
182,475.00
43255
14
Police Contract- 1st QTR FY2008 Billing
Page 1 of 4 1/23/2008 12:33 PM
TOWN OF WESTLAKE
Invoices Received: 01/07/08 thru 01/20/08
For Review by Board on 01/28/08
:VENDOR NAME
Matheson Tri -Gas
INVOICE
498805
•
81.80
s
100
ACCT
46615
DEPT
14
DESCRIPTION
Medical Supplies
MES - South Texas
00010445 SNV
120.00
100
44211
14
Air fill /Leak test
Metro Fire
19978 -1
190.00
100
44211
14
T3 rechargeable battery
North East Fire Dept Assoc
13 -022
548.38
100
43135
14
Pre - Employment Testing - Reimburse for 10 -06 -07 NFACT Fees
North East Fire Dept Assoc
13 -023
550.00
100
433361
14
Reimbursement for TCC Live Fire Training
Office Depot
414802073 -001
77.71
100
46105
14
Black toner, paper clips & correction tape
Recept Pharmacy
221273
239.55
100
46615
14
Medical Supplies
Roanoke Auto Supply
586292
45.01
100
46215
14
Vehicle Maintenance
Southeastern Emergency Eqpmt
226122
1,011.70
100
46615
14
Medical Supplies
T- Mobile
12272007
103.70
100
45310
14
Wireless Internet Cards for EMS vehicles
Valero 01
01152008
411.32
100
1462151
14
EMS Vehicle Fuel - M481
Valero 03
01152008
361.13
100
46215
14
EMS Vehicle Fuel - E481
Valero 04
01152008
33.26
100
46215
14
EMS Vehicle Fuel - Tahoe
Verizon 8173374722
01042008
118.11
100
45305
14
Fire Station Telephone
Total Fire Dept.
186,906.22
A -1 Copier Tec Inc.
43932
131.50
100
44300
15
50% Quarterly Copy Charge - Sharp 275 - Court
Accurint
1081941 - 20071231
1,178.59
100
46165
15
Background Searches
AT &T 817 - 163 -2194
01022008
231.12
100
45315
15
T1 Internet Line for Court Offices (01/01/08 thru 01/31/08)
AT &T 817- 491 -8623
12292007
38.04
100
45305
15
Court -Alarm Line (12/29/07 thru 01/28/08)
Boyle & Lowry 2
12272
2,475.00
100
43310
15
Legal Fees - Court
Brad Bradley
ER122607
152.00
100
45830
15
Annual Judicial training & registration fee
Bradley L. Bradley
01012008
2,541.66
100
43330
15
Judge Services for the month of January 2008
Cardinal Tracking
940307891
808.25
100
46165
15
Annual software license renewal & Multi User renewal
Office Depot
414366684 -001
42.94
100
46105
15
Water, mini key, paper towels, refill desk calendar
Office Depot
414565357 -001
10.92
100
46105
15
3 cases /copy paper
Purchase Power 2
12212007
73.43
100
46120
15
Court Postage
Valero 07
01152008
96.93
100
46215
15
1 Marshall Vehicle Fuel
Total Court
7,780.38
Brock Paving
08 -00 -01
800.00
100
44303
16
Road Repair & Maintenance (Dove Road)
NTB
16898738 -RI
79.94
100
46215
16
Oil Change & tire rotation for Public Works truck
Office Depot
414007764 -001
16.38
100
46105
16
Daily business diary, assorted highlighters & engineer scales
Panda Embroidery
51220
47.00
100
46605
16
Work shirts for Joseph - Split 25%
Red Wing
12282007
35.06
100
46605
16
Split 25% - Joseph Lopez
USA Blue Book
485287A
8.57
100
441221
16
Freight charges for DPD Chlorine test
Valero 05
01152008
113.34
100
46215
16
Public Works Vehicle Fuel @ 50%
Total Public Works
1,100.29
Access Lift & Service
1030841
100.00
100
45903
17 j
Elevator Maintenance for the month of December
Dallas Door & Supply
161193
312.50
100
45906
17
Adjust exit device & door closers on POD G & E
ECI Video
0000035240 -1
261.00
100
45901
17
Court Room setup
Hadden Landscaping
24958
67.50
100
43344
17
Mow & Weedeat at the Ottinger /Dove intersection
Hadden Landscaping
24958
440.00
100
43348
17
Spread mulch - Soccer Field
Home Depot
0013503
102.67
100
44216
17
Drain pipe repair & supplies
Home Depot
0033321
17.17
r 100
44216
17 I
Drainpipe repairs
Page 2 of 4 1/23/2008 12:33 PM
TOWN OF WESTLAKE
Invoices Received, 01/07/08 thru 01/20/08
For Review by Board on 01/28/08
VENDOR
Home Depot
1026619
32.68
100
ACCT
44212
DEPT
17
DESCRIPTION
Building supplies
Logical Solutions
100886
1,725.00
100
43338
17
Web control contract for lighting HVAC system
Nextel
392123723 -039
114.39
100
45310
17
Mobile Phone charges for Troy Meyer
Office Depot
414007764 -001
16.39
100
46105
17
Daily business diary, assorted highlighters & engineer scales
Office Depot
414582785 -001
26.99
100
46105
17
Refill weekly /monthly year calendar
Panda Embroidery
51220
47.00
100
46605
17
Work shirts for Joseph - Split 25%
Panda Embroidery
51221
58.00
100
46605
17
Embroidery for Uniforms - Jacket
Red Wing
6.52E +12
35.06
100
46605
17
Split 25% - Joseph Lopez
SimplexGrinnell
71960764
927.00
100
43350
17
Fire /Door alarm system (24 hour monitoring)
Triple R Locksmith
30743
3.50
100
44210
17
2 duplicate keys
Triple R Locksmith
30788
103.50
100
44212
17
2 Keys to Town car
Valero 10
01152008
41.00
100
46215
17
Facilities Vehicle Fuel @ 50%
Total Facilities /Grounds
4,431.35
Intec Business Systems
6217
795.00
100
46130
18
10 /Budget books w /index tabs, cover, punch & bind for submission to GFOA for award
Office Depot
413710213 -001
41.01
100
46105
18
Erasable calendar, letter opener & AA battery pack
Total Finance
836.01
Office Depot
414007764 -001
16.39
100
46105
19
Daily business diary, assorted highlighters & engineer scales
Panda Embroidery
51220
47.00
100
46605
19
Work shirts for Joseph - Split 25%
Red Wing
12282007
35.06
100
46605
19
Split 25% - Joseph Lopez
Valero 10
01152008
41.01
100
46215
19
Park & Recs Vehicle Fuel @ 50%
Total Parks /Recreation
139.46
AT &T 817 - 430 - 0941 -1
12292007
83477
199
13020
0
Due from WA - Telephone 50%
Boyle & Lowry 4
12272
2,306.25
199
13020
0
Legal Fees - Academy
Purchase Power 3
12212007
21.32
199
13020
0
Academy Postage
Total Academy Fund
3,162.34
Allen Heath
CR011708
108.96
220
43510
11
Historical Museum Set -up (Phone cable, router, power strip, USB cable & wireless card)
ARTSNET
12182007
3,750.00
220
43526
11
Masterworks Sponsorship 08
AT &T 817 - 430 - 0941 -4
12292007
125.21
220
45305
11
Visitor Fund Telephone 15% of Town's 50% allocation
AT &T 817- 491 -3450
12292007
79.33
220
43505
11
Internet line for Historical Board Museum (12/29/07 thru 01/28/08)
Office Depot
415416660 -001
51.48
220
46105
11
Ativa Shredder & lubricant
Purchase Power 7
12212007
71.35
220
46120
11
Visitor Fund Postage
Westlake Academy Foundation
01042008
7,500.00
220
43531
11
Gallery Night Gallery Sponsorship
Due from Visitor Fund
11,686.33
Purchase Power 5
12212007
0.41
240
46120
0
Foundation Postage
Due from W.A. Foundation
0.41
Boyle & Lowry 8
12272
2,186.25
410
16600
13
Capital Projects - Arts & Sciences Building
Due from Capital Projects
2,186.25
AT &T 817 - 430 - 0941 -3
12292007
125.21
500
45305
16
Utility Fund Telephone 15% of Town's 50% allocation
Page 3 of 4 1/23/2008 12:33 PM
TOWN OF WESTLAKE
Invoices Received: 01/07/08 thru 01/20/08
For Review by Board on 01/28/08
VENDOR
Data Prose
• ICE
46422
AMOUNT
215.47
FUND
500
ACCT
44135
DEPT
16
DESCRIPTION
Utility Billing Processing for December 2007 cycle
Dept of State Health Services
12212007
570.00
500
44122
16
Lab testing - lead & copper /drinking water
Jarrod Greenwood
ER010708
64.99
500
45310
16
Cell phone (11/26/07 thru 12/25/07)
Jarrod Greenwood
ER010708
87.65
500
46215
16
Fuel purchased for utility truck on personal credit card
Kwik Kar Lube & Tune
00001 - 01381854
39.75
500
46215
16
Oil Change for OF Vehicle
North Central Texas COG
57321
200.00
500
45830
16
Basic Water Works training & book fee (Joseph Lopez)
Office Depot
414007764 -001
57.03
500
46105
16
Assorted pen colors & markers, scissor & dry eraser markers
Office Depot
415416660 -001
51.50
500
46105
11
Ativa Shredder & lubricant
Panda Embroidery
51220
47.00
500
46605
16
Work shirts for Joseph - Split 25%
Purchase Power 6
12212007
71.35
500
146120
16
Utility Fund Postage
Red Wing
12282007
35.06
500
46605
16
Split 25% - Joseph Lopez
Texas Excavation Safety
07 -6945
22.80
500
44220
16
Message fee for December 2007
Tri- County Electric 150 -501
1072008
4,686.46
500
46221
16
OF Electric Service - Pump Station (includes $1773.61 previous balance due to billing
error)
Trinity River Authority
BB 754
13,563.00
500
44115
16
TRA Wastewater Treatment
Valero 05
01152008
113.34
500
46215
16
Utility Fund Vehicle Fuel @ 50%
Due from Utility
19,950.61
A -1 Copier Tec Inc.
43932
26.30
100
13100
0
10% Quarterly Copy Charge - Sharp 275 - TSH
Purchase Power 4
12212007
2.05
100
13100
0
TSH Postage
Due from TSH
28.35
Grand Total
i
256,511.37
Page 4 of 4 1/23/2008 12:33 PM
Town of Westlake
Meeting Schedule
January 28, 2008
5:00 p.m.
Board of Aldermen Pre -Board Meeting
Civic Campus- Dining Hall;
J. T. Ottin er Road location
7:00 p.m.
Board of Aldermen Regular Meeting
Civic Campus- Board Room;
J. T. Ottinger Road location
In keeping with existing Academy buildings, the design for the building calls for flexible, modular space, creating
new classroom space that can be used by all disciplines and taking a step closer to completing our master campus
expansion plan. The total square footage is 13,000 sq. ft., and the cost is estimated at $4 million. There would be
one large laboratory of more than 1,300 sq. ft., large enough for a complete class, studying any science. The two
smaller labs, 500 sq. ft. and 850 sq. ft. would be ample for the smaller elective science courses and can be opened
up to create one large space of 1,350 sq. ft. for full sized classes. All space would provide hard wire and wireless
network connections to accommodate a complete range of information technologies.
The modular design of the center could be built at different times and completed to different finish levels
depending upon the amount of funds collected in the campaign. The science area would be built first, together
with the contiguous restrooms. The two divisible labs would be the first to be finished. The large open lab could
remain as open space with a movable wall so that it could be used as an additional classroom for any discipline
— math, foreign language, history or science.
In order to continue directing as much of our state money as possible directly to the classroom, the Town of
Westlake will design, construct and maintain the building and carry the asset liability on the Town books just as
we do the current campus buildings. As a result, the Academy will remain debt free.
gapes --,
low stone walls
Daylit interiors
Outdoor terrace
_ 1
fi CS1' Nu+2N�
Slopes and(or
lnw 0— walla
Ft— ibla porlormanco
and rehearsal space,
0
f T7
Adjustable risers
and seating
Exposed grid with lighting
i o
Low stone wails
F. —. —
Vwk MIFWWqr � - -
Outdoor sloped seating
WESTL.AKE ACADEMY GideonToal'
Arts
The arts area will provide much needed space for visual arts and music. The `black box theatre' creates a
multi - purpose area, suitable for dramatic arts as well as music. An outdoor amphitheater and art studios will
enhance the original Academy design. The addition of these art facilities will have a direct effect on International
Baccalaureate course selection and allow students hours for advanced study.
Sciences
Science is the hallmark of a great society. The United States has long been the leader in scientific research;
research that eventually makes its way into the operating room, medical advances, better safety measures and
innumerable patents for everything from machinery to a better can opener. Our long undisputed leadership in
science is today slipping. The President of the United States has recently called for great improvement in science
education to prevent that decline.
Westlake Academy intends to uphold its mission to provide high quality science education and to inspire
students to pursue scientific fields at the university level. In order to meet our students' needs, facilities that
will provide them with the tools, space and equipment that will match their ingenuity are required. Our present
facility, designedto accommodate the laboratory needs of elementary students, accommodates those experiments that
require only basic equipment.
The addition of state -of -the -art science laboratories will allow the Academy to offer more chemistry
and physics as well as improved facilities for biology. Without new labs, biology is the only advanced science the
current buildings adequately support.
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WE-SH_•iK6_:VLAUG.53r . GideonToal
The International Baccalaureate Diploma is the most prestigious high school diploma in the world. For over
50 years, the International Baccalaureate Organization (IBO), a not - for -profit foundation, has developed
inquiring, knowledgeable and caring young people who help to create a better world through education, intercultural
understanding and respect. Three separate programs span a student's entire educational career from 3 to 18
years of age. The Primary Years Program (PYP) for students 3 to 11 spans the elementary years; the Middle
Years Program (MYP) is for students 11 to 15, and the prized Diploma is for students in the last two years of
high school.
The Academy has pledged to offer a well- rounded curriculum that allows students to explore knowledge
through different lenses: those of the historian, the writer, the scientist, the mathematician, the musician and the
artist. Having different perspectives and seeing the connections between disciplines, the student is able to
appreciate the wider conceptual base that forms the foundation for problem solving. This richer curriculum also
gives students more areas to explore and appreciate in order to find unknown interests and talents. Academic
demands of students concluding the Primary Years Program grow quickly as they enter the Middle Years and
Diploma Program. Providing facilities to accommodate advanced curriculum options in math, science and the
arts is crucial if our students are to realize their true potential.
-J
PPW%II
a.�
The Westlake Academy Foundation is pleased to announce its first Capital Campaign to benefit Westlake
Academy. The campaign's goal is to fund 100 percent of the construction costs of an Arts and Sciences
Centre which will not only add classroom space, but also will dramatically improve Westlake Academy's
capacity to serve the needs of specialty disciplines central to both the International Baccalaureate curriculum and the
Academy's mission.
Our mission to provide a rigorous, international curriculum is needed now more than ever. The responsibility
for realizing our mission is shared by teachers, parents, students and the entire community. The Academy has
successfully provided learning opportunities over the past three years which have resulted in
significant growth and excellence. Building an outstanding Arts and Sciences Centre will maximize the unique
educational experience of Westlake Academy students now and in the future; preparing them to be the leaders
of tomorrow.
We encourage you to_join with your neig(i6ors and friends in making t(iis first CapitaCCampaign a success.
Westlake Academy Arts & Sciences Building Capital Campaign
Preliminary Naming Opportunities as of January 2007
Main Donor Wall
All donors to the Westlake Academy Capital & Endowment Campaign will
be recognized on the Main Donor Wall to be erected at the School.
Capital Gifts
Leadership contributors to the new Arts & Sciences facility will receive site
specific naming opportunities as well as recognition on the donor wall:
Arts & Sciences Complex Naming Right
Black Box Theater
Art Classroom
Science Laboratory ( #1)
Science Laboratory Breakout Space
Science Laboratory #2
Outdoor Terrace
$1.5million
Science Laboratory #3
$100,000
$750,000
Science Workroom
$100,000
$750,000
Conference Room
$100,000
$500,000
Offices (4) for Academic Staff
$50,000 each
$250,000
Art Office
$50,000
$250,000
Theater Office
$50,000
$250,000 MOM&
Contributors of $25,000 gifts will be recognized by placing the donors name on the Front Row of the Sloped
Seating Area of the Theater (available for the first 20 donors at this level).
Contributors of $10,000 gifts will be recognized by placing the donors name on a seat in the Sloped Seating Area
of the Theater, or donors may choose to be recognized on seating on the Terrace.
Garden Terrace Brick Pavers
• Contributors of $5,000 to $9,999 will be recognized on large brick pavers on the Garden Terrace.
• Contributors of $2,500 to $4,999 will be recognized on medium size brick pavers on the Garden Terrace.
• Contributors of $1,000 to $2,499 will be recognized on small brick pavers on the Garden Terrace
Endowment Gifts
The Westlake Academy Foundation has set an immediate fundraising goal of $1 million to be placed in an
Endowment Fund to help the Westlake Academy provide for its annual shortfall in program and operating
budget. Currently, this annual shortfall amounts to approximately $2,000 per student.
A gift of $40,000 to the Endowment Fund will fill the gap in this annual shortfall for one student with
interest income generated each year. Donors who give to the Endowment fund at this level or above will
be recognized in the Anvil Society, a distinguished group of dedicated donors. Anvil Society donors will
be recognized on the Main Donor Wall in the Academy as well as on special Society recognition.
Gifts of cash, assets, stock, annuities, life insurance, and an array of planned giving vehicles are welcomed as
contributions to the Endowment. Please contact the WLA Foundation at 817 - 490 -5722 to discuss the many
ways you can contribute.
The Westlake Academy Foundation wishes to gratefully acknowledge all donors to the Capital & Endowment Campaign.
No goods or services are provided in exchange for gifts to the campaign, and all gifts are tax deductible to full extent of the law.
Westlake Academy Foundation
Board of Aldermen Presentation
January 28, 2008
WESTLAKE
IACADEMY'FOUNDATIOON
Mission Statement
Westlake Academy Foundation exists to raise
funds for the operating shortfall, capital
requirements, and endowment needs of the
Westlake Academy.
M UNDATION
Board Members
Board Members:
Chris Noonan, President
Laura Wheat, Vice President
David Lee, Secretary
Bill Greenwood
Margo Hundley
George Ledak
Rick Rennhack
Leigh Sander
Julie Timmerman
Liaisons:
Barbara Brizuela, Head of School
Mike Garabedian, President of WRAC
Joe Hennig, Town Manager
Dave Lieber, Liaison to the Black Cow
Janet Noonan, Speaker of the House of Commons
Angie Gofredo, Executive Director
NVESTLAKE
Top 5 Strategic objectives
1. Operating Shortfall
2. Capital Campaign Requirements
3. Endowment Needs
4. Communications Strategy
5. Additional Board Members
ACADEMY M-
MON
2007 -08 Top Goals (Measurable)
■ Blacksmith
Gallery Night
■ Endowment
■ Capital Campaign
■ Board Members
$420,325
$90,000 (net)
$200,000
$2,500,000
8 to 15 members
JACADEMYFOUNDATION
November 1 - 15, 2007
February 22, 2008
December 31, 2008
December 31, 2008
Initiative - Operating Shortfall
Annual Plan
■ Blacksmith Apprentice Program (BAP)
■ Raise at least $420,325 to meet school operating budget (ideal is $675,000)
■ 100% parent participation
■ Historical Comparison
* Pledges extend until the end of the school year.
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WESTLAKE
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2004 -2005
267
233
175
148
$896.80
$1,027.67
$1,368.26
$1,617.88
$253,085.00
$239,446.00
2005 -2006
322
296
205
182
$1,042.63
$1,134.21
$1,637.69
$1,844.65
$352,889.70
$335,727.09
2006 -2007
347
300
186
152
$1,119.24
$1,294.59
$2,088.05
$2,555.11
$397,030.00
$388,377.00
2007-20081
379
288
221
166
$1,078.94
$1,419.86
$1,850.32
$2,463.37
1 $408,920.00
1 $309,017.72*
* Pledges extend until the end of the school year.
'0
WESTLAKE
Initiative -
Annual Plan
■ Gallery Night
Operating Shortfall
• Raise at least $90,000 (net)
• Increase the number of sponsorship dollars
• Increase amount raised in the auctions - enhance the value of the live auction items
• Mike Garabedian is the 2008 chair, committee members are parents and community members
■ Historical proceeds
FY 2005 $56, $6,022 $62, 718
FY 2006 $90, 4 $4,119 $K!596
FY 2007 $87,46 $0 $87,462
* Ga I I ery Dray was stopped i n 2006
■ Grants Program
■ Raise additional operating dollars from foundations and corporations
■ 3 Year Plan
■ Legislative initiatives — assist the school and the Town with lobbying efforts
(increased dollars given to Charter Schools)
m UNDATION
Initiative - Capital Requirements
1 Year Plan
• Raise $2.5 million of the required $5.5 million for the Arts & Sciences Centre
• Support Capital Campaign Steering Committee & Capital Campaign Plan
• To date the campaign has raised $911,988.
• Phases of the Capital Campaign Plan
• "Leadership Phase" — Dec. 1, 2007 — March 15, 2008
• "Parent, Family, and Community Phase" — March 16, 2008 — December 31, 2008+
• Communication Plan
• Solicitation packets
• Web site — developing a web site similar to Palma High School in California
• Committee Members:
• Laura Wheat, co -chair
• Bill Greenwood, co -chair
• Kelly Bradley
• George Ledak
• Rick Rennhack
• Julie Timmerman
• Leah Rennhack
IAW
WESTLAKE
Sample Web site
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PALMA HIGH SCHOOL'S DIVERSE STUDENT BODY
HAS MANY TALENTS, INTERESTS, AND ABILITIES
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To keep pace with our growing needs and uphold our commitment to our students and the communities in ,which they live, Palma plans to
construct dynamic new venues on its campus that integrate science. athletics. music, and alt-
A S4.7 million capital campaign has been launched to raise funds needed to address critical physical space needs and expand the success
of our scientific.. athletic. and performingffine alts programs- This project reinforces our commitment to creating an updated and efficient
campus environment that provides our students with enhanced opportunities to learn, express their creativity, and interact',with the Community.
The excellence in Tradition capital campaign will take Palma's facilities into the 21st century. creating the following benefits.,
0 Internet
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Initiative - Endowment
1 Year Plan
■ Identify board members who could help with legal issues of an
endowment
■ Research and propose an endowment board policy
■ Consider adding "Anvil Society" to the annual Blacksmith Program.
Annual gift of $40,000 or more to the endowment
■ Phase 3 (Capital Campaign) - start endowment; Anvil Society, host 2nd
Grandparents Day, target corporate sponsors
3 Year Plan
■ Increase the Endowment to over $1,000,000
■ Begin to utilize interest dollars for Operating Shortfall
ACADEMV FOUNDATION!
Initiative - Communication
Annual Plan
"it is better to over communicate and bore than to under communicate and
cripple"
• Black Cow (advertise articles) that speak to Foundation, fundraising, and
legislative efforts
• Web site - keep the web site current with information about the foundation
• Host "Grandparents Day" at Westlake Academy
• Newsletter - develop a newsletter to reach out to donors
• Press Releases - send out more information about the school and foundation to
various media sources
• Bring the community stakeholders together through communication
• Assist with a customer service strategy for both the school and foundation
• Include the various liaison opportunities when talking to potential volunteers
• Foundation involvement in school tours and welcoming new members to the
community
ACADEMY FOUNDATION
Initiative - Additional Board Members
1 Year Plan
Recruit board members based on time, talent, and treasures
■ Implement a Board Expectations Policy
■ Develop a "New Board" orientation
■ Continue active committee driven programs
3 Year Plan
■ Continue to recruit and retain board members
ACADEMYFOUNDATION
Top 10 Crucial Results (Projects to Meet the Goals)
1. Blacksmith Apprentice program
2. Research potential foundation /corporation donors to help with the operating
shortfall
3. Grant writing
4. Complete the Capital Campaign Plan as outlined by Lawson & Associates
5. Complete the Leadership Phase of the Capital Campaign by March 15, 2008
6. Stay focused on "Bringing the Community Stakeholders Together"
7. Identify partners to assist in securing legislative change
8. Identify additional parents and community partners to join the board through
time, talent, and treasures
9. Build an Endowment program
10. Update and maintain donor software program
WESTLAKE
ACADEMY' FOUND A?ION
Jon and Monica Grant
998 Post Oak Road
Keller, Tx. 76248
January 28,2008
Subject: Incident during lunch detention on 1/25/08
Dear Westlake Academy School Board Members
We are writing to inform you of our decision to withdraw our children from the Westlake
Academy and the incident that was for us, the final blow in an already fragile school
relationship. In particular, I would ask the school board to investigate this incident and respond
to us in writing what their findings were. This incident involved our daughter Katherine during
her lunch detention this past Friday, January 25. Katherine's narrative is as follows:
"Stefanie and I were in Mrs. Lira's classroom on Friday, January 25, around 1:20 because we
had detention and the teachers were having lunch in there. The teachers were Mr. LaSerf, Mr.
Jenkins, Mr. Herrera, Mrs. Lira, Mrs. Tech, Mrs. James and the guidance counselor. The
teachers were sitting at the table eating and talking with each other casually and Stefanie and I
could hear their conversations clearly. Mrs. James started talking aloud but to no one in
particular about the ninth graders and how they were the better grade and really good about
everything. Mr. Jenkins agreed and said how only about three people in the tenth grade will
pass with the IB diploma and all the teachers seemed to agree with him. Mr. Jenkins was
standing in the front of the class room and said this aloud to everyone. Then the subject
changed and the casual conversations went on. After that Mr. Herrera started talking to
Stefanie and by then there was only a few minutes left then we left."
The comments of both Mrs. James and Mr. Jenkins in front of the students are troubling on
many levels. First of all, these types of conversations should not be taking place at earshot of
students. Secondly, these comments send the message to the students who hear them that
their teachers have already written them off. Finally, if in fact the teachers truly feel this about
the 10th grade students, then they are being disingenuous with these students and parents as
to their ability to pursue and achieve the IB diploma.
My daughter entered Westlake Academy in the fall of 9th grade. After about a month or so in
the school, we met with Mr. Jenkins and were told by him that Katherine probably did not have
what it takes to get an IB diploma. We expected that the transition to this new and rigorous
academic environment would be difficult and would take time so we were surprised to learn
that Mr. Jenkins had arrived to this conclusion after just one month. We had hoped that the
teachers would have encouraged her by telling her that the transition at first would be hard, but
that they would work with her to help her learn in this new environment. Instead, after only one
month she was written off. We expected better from this program. This is not what we had
heard while our children were on the waiting list.
Her first year at Westlake was difficult, but we encouraged her not to give up and to try her
best. This year, we were excited when we received the news that our son Joshua had been
accepted to Westlake. Joshua was happy to be joining his sister at Westlake. He is a student
that has always been upbeat and enjoyed going to school. As with Katherine, we began to see
similar adjustment issues with our son. Suddenly the boy who was always happy to go to
school was waking up not wanting to go to school.
After a year and a half at Westlake, we have made the difficult decision to withdraw our
children from the school. We see many serious issues that need to be addressed,
unfortunately the necessary mechanism for fixing the problems are not in place and we don't
have the time to wait around until the school can resolve these issue. For our children it is
already too late. bight now, we must concentrate on repairing their self esteem and getting
them the appropriate academic support, so they can once again be on sure footing with their
grade peers.
We are sad in so many ways because we feel that a small school environment as this school
should have been the place where our children felt safe, supported, and nurtured. Although it
is already too late for them, we would urge the school board to examine some of the things we
have raised in this letter. Additionally, we would encourage the school board to take a closer
look at helping students make the transition to Westlake Academy. I felt unsupported in
helping my children adapt. Some of the issues these young adolescents face, when they arrive
to Westlake Academy are not only academic, but also deal with their social /emotional well
being and they include but are not limited to:
• Trying to fit into the Westlake environment
• Students who have been in the school for a while have their formed groups and it is
difficult for new students to join in
• General emotional adolescent issues that are not being addressed
• Feeling intimidated by teacher's teaching /class management style
• Not having anyone to go to with these kinds of issues.
Just looking at the 6 new students admitted this school year in tenth grade alone, half have
already withdrawn from the school. The simple answer to why, would be to say they couldn't
handle the work. However, that may not be the correct conclusion. Until this school board and
administration has the courage to fully examine what is at play here, this school will be a
revolving door of students.
We look forward to your investigation and receiving the timely written response of your
findings. Though we are deeply disappointed with our experience at Westlake as discussed in
this letter, it is our sincere hope that the board and school will learn from this situation and that
other students will benefit from the lessons learned.
Sincerely,
Jon and Monica Grant
cc: Mr. David Jenkins, Head of Secondary Westlake Academy
Mrs. Brizuela, Head of School Westlake Academy
Mr. Arnold Alaniz, Assistant Director Charter School Division TEA
Rebecca Rollins
13239 Roanoke Road
Westlake Texas
January 28, 2008
Dear School Board Members:
This past weekend I was made aware of how our students have been receiving Spanish
instruction this past school year. As you all know I have been an educator for the past 24
year in private, public and charter schools that are located in both urban and suburban
school district and I must admit to you, that even for a veteran like myself this is a new
one. We have at Westlake Academy a situation whereby a teacher is currently teaching
two sections of Spanish simultaneously at the same exact time. Where any of you aware
of this?
Apparently the students in the middle school receive two 90 minute periods of Spanish a
week. One day Mrs. Lira teaches on section of a grade alone and another day she teacher
the other section of that grade alone. But one time a week she teaches both sections at the
same time. When I questioned my children how she could do this, they explained that she
will go to one class assign the work and break the students into groups, once they get
going she runs across the hall to the other class and does the same. The entire 90 minutes
are spent by her going back and forth between two classes. This means she is required to
be in two places at one time, but because she can't physically do that, this means she
must spend some time in one class, while the other class is left unattended and visa versa.
It is unfair to ask any person to be in two places at one time let alone be responsible for
the education of two groups of students housed in different rooms at the same job and
expect that she can do a good job under these circumstances. Similarly as parents, we
cannot expect that our students are going to perform optimally under these conditions or
that this is quality education.
Frankly I don't see how this is legal and I would like this matter resolved immediately or
I will bring this to the attention of the TEA. Again this is yet another example of lack of
communication, transparency and complete failure of the school to have in place a system
of checks and balances. I am requesting that the board investigate this matter, resolve it
and respond to me in writing as to how this issue will be resolved. Additionally I am
requesting that all parents who have been receiving instruction in this manner be notified.
Thank you.
Rebecca P Rollins