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HomeMy WebLinkAboutRes 18-33 Settlement between ACSC and Atmos Energy Mid-Tex re 2018 RRM Filings RESOLUTION NO. 18-33 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY'S 2018 RATE REVIEW MECHANISM FILINGS; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHED EXHIBIT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; APPROVING AN ATTACHED EXHIBIT REGARDING AMORTIZATION OF REGULATORY LIABILITY; REQUIRING THE COMPANY TO REIMBURSE ACSC'S REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS RESOLUTION WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND THE ACSC'S LEGAL COUNSEL. WHEREAS, the Town of Westlake, Texas ("City") is a gas utility customer of Atmos Energy Corp., Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the Town is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition of similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities") that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate Review Mechanism ("RRM") tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") process instituted by the Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the RRM tariff was adopted by the City in a rate ordinance earlier this year; and WHEREAS, on about April 1, 2018, Atmos Mid-Tex filed its 2018 RRM rate request with ACSC Cities based on a test year ending December 31, 2017; and WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2018 RRM filing through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues identified in the Company's RRM filing; and Resolution 18-33 Page 1 of 3 WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $24.9 million on a system-wide basis ($17.8 million of which is applicable to ACSC members); and WHEREAS, the attached tariffs (Exhibit A) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and WHEREAS, the Exhibit A rate tariffs incorporate the federal income tax rates that became effective January 1, 2018; and WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical benefits (Exhibit B) and WHEREAS, the settlement agreement establishes an amortization schedule for regulatory liability (Exhibit C); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable expenses associated with RRM applications; NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: Section 1. That the findings set forth in this Resolution are hereby in all things approved. Section 2. That the Town Council finds that the settled amount of an increase in revenues of$24.9 million on a system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Tex's 2018 RRM filing, is in the public interest, and is consistent with the City's authority under Section 103.001 of the Texas Utilities Code. Section 3. That the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Exhibit A, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $24.9 million in revenue on a system-wide basis over the amount allowed under currently approved rates. Such tariffs are hereby adopted. Section 4. That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid-Tex's next RRM filing shall be as set forth on Exhibit B, attached hereto and incorporated herein. Section 5. That amortization of regulatory liability shall be consistent with the schedule found in attached Exhibit C attached hereto and incorporated herein. Resolution 18-33 Page 2 of 3 Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC in processing the Company's 2018 RRM filing. Section 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 8. That the meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. That if any one or more sections or clauses of this Resolution is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Resolution, and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. Section 10. That consistent with the Town Ordinance that established the RRM process, this Resolution shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2018. Section 11. That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LJB Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED ON THIS 24th DAY OF SEPTEMBER 2018. ATTEST: " " hieze2_ Laura L. Wheat, Mayor LfLi Kell Edws, Town Secretary �,.+�'' Thomas E. Brymer, own Manager ► \NEST4q� .- APPROVED AS TO FO' : • o • AP* . anton Lo' y:Fe n : orney "` '''"' Resolution 18-33 Page 3 of 3 Exhibit A Rate Tariffs Effective October 1, 2018 Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:R - RESIDENTIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 12 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $18.85 per month Rider CEE Surcharge $ 0.03 per month' Total Customer Charge $18.88 per month Commodity Charge - All Ccf $0.14846 per Ccf Gas Cost Recovery: Pius an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider OCR. Weather Normalization Adjustment: Pius or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. ^Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2018. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:C - COMMERCIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 13 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 43.50 per month Rider CEE Surcharge $ (0.03) per month' Total Customer Charge $ 43.47 per month Commodity Charge - All Ccf $ 0.09165 per Ccf Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. ' Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2018. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 14 Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate 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 $ 784.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.3312 per MMBtu Next 3,500 MMBtu $ 0.2425 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0520 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 OCR. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries. Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Dally 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. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 15 Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 16 Exhibit A The rates were effective for the following Cities on 3/15/2018: ABILENE ADDISON ALBANY ALLEN ALVARADO ANGUS ANNA ARGYLE ARLINGTON AUBREY AZLE BEDFORD BELLMEAD BENBROOK BEVERLY HILLS BLOSSOM BLUE RIDGE BOWIE BOYD BRIDGEPORT BROWNWOOD BUFFALO BURKBURNETT BURLESON CADDO MILLS CANTON CARROLLTON CEDAR HILL CELESTE CELINA CENTERVILLE CISCO CLARKSVILLE CLEBURNE CLYDE COLLEGE STATION COLLEYVILLE COLORADO CITY COMANCHE COOLIDGE COPPELL CORINTH CRANDALL CROWLEY DALWORTHINGTON GARDENS DENISON DENTON DESOTO DRAPER AKA CORRAL CITY DUNCANVILLE EASTLAND EDGECLIFF VILLAGE EMORY ENNIS EULESS EVERMAN FAIRVIEW FARMERS BRANCH FARMERSVILLE FATE FLOWER MOUND FOREST HILL FORNEY FORT WORTH FRISCO FROST GAINSVILLE GARLAND GARRETT GRAND PARAIRIE GRAPEVINE GUNTER HALTOM CITY HARKER HEIGHTS HASKELL HASLET HEWITT HIGHLAND PARK HIGHLAND VILLAGE HONEY GROVE HURST IOWA PARK IRVING JUSTIN KAUFMAN KEENE KELLER KEMP KENNEDALE KERRVILLE KILLEEN KRUM LAKE WORTH LAKESIDE LEWISVILLE LINCOLN PARK (ANNEXED WITH LITTLE ELM) LITTLE ELM LORENA MADISONVILLE MALAKOFF MANSFIELD MCKINNEY MELISSA MESQUITE MIDLOTHIAN MURPHY NEWARK NOCONA NORTH RICHLAND HILLS NORTH LAKE OAK LEAF OVILLA PALESTINE PANTEGO PARIS PARKER PECAN HILL PETROLIA PLANO PONDER POTTSBORO PROSPER QUITMAN RED OAK RENO (PARKER COUNTY) RHOME RICHARDSON RICHLAND RICHLAND HILLS RIVER OAKS ROANOKE ROBINSON ROCKWALL ROSCOE ROWLETT Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 17 Cities with Rate Effective 3/15/2018 (Continued) ROYSE CITY SACHSE SAG IN AW SANSOM PARK SEAGOVILLE SHERMAN SNYDER SOUTHLAKE SPRINGTOWN STAMFORD STEPHENVILLE SULPHUR SPRINGS SWEETWATER TEMPLE TERRELL THE COLONY TROPHY CLUB TYLER UNIVERSITY PARK VENUS VERNON WACO The rates were effective for the following Cities on 4/01/2018: ABBOTT ALBA ALMA ALVORD ANNONA ANSON ARCHER CITY ATHENS AURORA AUSTIN AVERY BAIRD BALCH SPRINGS BALLINGER BANDERA BANGS BARDWELL BARRY BARTLETT BARTONVILLE BELLEVUE BELLS BELTON BENJAMIN BERTRAM BLACKWELL BLANKET BLOOMING GROVE BLUE MOUND BLUM BOGATA BONHAM BREMOND BRONTE BROWNSBORO BRUCEVILLE-EDDY BRYAN BUCKHOLTS BUFFALO GAP BURNET BYERS CALDWELL CALVERT CAMERON CAMPBELL CARBON CASHION COMMUNITY CEDAR PARK CHANDLER CHICO CHILDRESS CHILLICOTHE CLIFTON COCKRELL HILL COLEMAN COLLINSVILLE COMMERCE COMO COOPER COPPER CANYON COPPERAS COVE CORSICANA COVINGTON COYOTE FLATS CRAWFORD CROSS ROADS CUMBY DAWSON DECATUR DELEON WATAUGA WAXAHACHIE WESTLAKE WESTOVER HILLS WHITE SETTLEMENT WHITESBORO WICHITA FALLS WOODWAY WYLIE DEPORT DETROIT DODD CITY DOUBLE OAK DUBLIN EARLY ECTOR EDOM ELECTRA EMHOUSE EUSTACE EVANT FAIRFIELD FERRIS FRANKLIN FRANKSTON FREDERICKSBURG GATESVILLE GEORGETOWN GLEN ROSE GLENN HEIGHTS GODLEY GOLDTHWAITE GOODLOW GORDON GOREE GORMAN GRANBURY GRAND VIEW GRANGER GREENVILLE GROESBECK GUSTINE HAMLIN HAMILTON Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 18 Cities with Rate Effective 4/01/2018 (Continued) HAWLEY HEARNE HEATH HEBRON HENRIETTA HICKORY CREEK HICO HILLSBORO HOLLAND HOLLIDAY HOWE HUBBARD HUTCHINS HUTTO IMPACT IREDELL ITALY ITASCA JEWETT JOSEPHINE JOSHUA KERENS KNOLLWOOD KNOX CITY KOSSE KURTEN LACY-LAKEVIEW LADONIA LAKE DALLAS LAKEPORT LAMPASAS LANCASTER LAVON LAWN LEANDER LEONA LEONARD LEXINGTON LINDSAY LIPAN LITTLE RIVER ACADEMY LLANO LOMETA LONE OAK LONGVIEW LORAINE LOTT LUEDERS MABANK MALONE MANOR MARBLE FALLS MARLIN MART MAYPEARL MCGREGOR MCLENDON-CHISHOLM MEGARGEL MERIDIAN MERKEL MEXIA MIDWAY MILES MILFORD MILLSAP MOBILE CITY MOODY MORAN MORGAN MUENSTER MUNDAY MURCHISON NEVADA NEW CHAPEL HILL NEWCASTLE NOLANVILLE NORMANGEE NOVICE OAK POINT OAKWOOD O'BRIEN CO-OP GIN OGLESBY OLNEY PALMER PARADISE PECAN GAP PENELOPE PFLUGERVILLE PILOT POINT PLEASANT VALLEY POINT POST OAK BEND POWELL POYNOR PRINCETON PUTNAM QUANAH QUINLAN RANGER RAVENNA RENO (LAMAR COUNTY) RETREAT RICE RIESEL RIO VISTA ROBERT LEE ROBY ROCHESTER ROCKDALE ROGERS ROSEBUD ROSS ROTAN ROUND ROCK ROXTON RULE RUNAWAY BAY SADLER SAINT JO SAN ANGELO SAN SABA SANCTUARY SANGER SANTA ANNA SAVOY SCURRY SEYMOUR SHADY SHORES SOMERVILLE SOUTH MOUNTAIN SOUTHMAYD STAR HARBOR STOCKTON BEND STRAWN STREETMAN SUN VALLEY SUNNYVALE TALTY TAYLOR TEAGUE TEHUACANA THORNDALE THORNTON THRALL THROCKMORTON TIOGA TOCO Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:1 - INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 19 Cities with Rate Effective 4/01/2018 (Continued) TOM BEAN TRENT TRENTON TRINIDAD TROY TUSGOLA TYE VALLEY MILLS VALLEY VIEW VAN ALSTYNE WALNUT SPRINGS WEINERT WEST WESTWORTH VILLAGE WHITEHOUSE WHITEWRIGHT WHITNEY WILMER WINDOM WINTERS WIXON VALLEY WOLFE CITY WORTHAM YANTIS Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 16 Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 784.00 per month First 0 MMBtu to 1,500 MMBtu $0.3312 per MMBtu Next 3,500 MMBtu $ 0.2425 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0520 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part (b) of Rider OCR. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities for the month. Res 18-33 MID-TEX DIVISION RRC Tariff No: ATMOS ENERGY CORPORATION RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 17 Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in 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 Dally 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 subjeot 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. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 18 Exhibit A The rates were effective for the following Cities on 3/15/2018: ABILENE ADDISON ALBANY ALLEN ALVARADO ANGUS ANNA ARGYLE ARLINGTON AUBREY AZLE BEDFORD BELLMEAD BENBROOK BEVERLY HILLS BLOSSOM BLUE RIDGE BOWIE BOYD BRIDGEPORT BROWN WOOD BUFFALO BURKBURNETT BURLESON CADDO MILLS CANTON CARROLLTON CEDAR HILL CELESTE CELINA CENTERVILLE CISCO CLARKSVILLE CLEBURNE CLYDE COLLEGE STATION COLLEYVILLE COLORADO CITY COMANCHE COOLIDGE COPPELL CORINTH CRANDALL CROWLEY DALWORTHINGTON GARDENS DENISON DENTON DESOTO DRAPER AKA CORRAL CITY DUNCANVILLE EASTLAND EDGECLIFF VILLAGE EMORY ENNIS EULESS EVERMAN FAIRVIEW FARMERS BRANCH FARMERSVILLE FATE FLOWER MOUND FOREST HILL FORNEY FORT WORTH FRISCO FROST GAINSVILLE GARLAND GARRETT GRAND PARAIRIE GRAPEVINE GUNTER HALTOM CITY HARKER HEIGHTS HASKELL HASLET HEWITT HIGHLAND PARK HIGHLAND VILLAGE HONEY GROVE HURST IOWA PARK IRVING JUSTIN KAUFMAN KEENE KELLER KEMP KENNEDALE KERRVILLE KILLEEN KRUM LAKE WORTH LAKESIDE LEWISVILLE LINCOLN PARK (ANNEXED WITH LITTLE ELM) LITTLE ELM LORENA MADISONVILLE MALAKOFF MANSFIELD MCKINNEY MELISSA MESQUITE MIDLOTHIAN MURPHY NEWARK NOCONA NORTH RICHLAND HILLS NORTHLAKE OAK LEAF OVILLA PALESTINE PANTEGO PARIS PARKER PECAN HILL PETROLIA PLANO PONDER POTTSBORO PROSPER QUITMAN RED OAK RENO (PARKER COUNTY) RHOME RICHARDSON RICHLAND RICHLAND HILLS RIVER OAKS ROANOKE ROBINSON ROCKWALL ROSCOE ROWLETT Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 19 Cities with Rate Effective 3/15/2018 (Continued) ROYSE CITY SACHSE SAG! N AW SANSOM PARK SEAGOVILLE SHERMAN SNYDER SOUTHLAKE SPRINGTOWN STAMFORD STEPHENVILLE SULPHUR SPRINGS SWEETWATER TEMPLE TERRELL THE COLONY TROPHY CLUB TYLER UNIVERSITY PARK VENUS VERNON WACO The rates were effective for the following Cities on 4/01/2018: ABBOTT ALBA ALMA ALVORD ANNONA ANSON ARCHER CITY ATHENS AURORA AUSTIN AVERY BAIRD BALCH SPRINGS BALLINGER BANDERA BANGS BARDWELL BARRY BARTLETT BARTONVILLE BELLEVUE BELLS BELTON BENJAMIN BERTRAM BLACKWELL BLANKET BLOOMING GROVE BLUE MOUND BLUM BOGATA BONHAM BREMOND BRONTE BROWNSBORO BRUCEVILLE-EDDY BRYAN BUCKHOLTS BUFFALO GAP BURNET BYERS CALDWELL CALVERT CAMERON CAMPBELL CARBON CASHION COMMUNITY CEDAR PARK CHANDLER CHICO CHILDRESS CHILLICOTHE CLIFTON COCKRELL HILL COLEMAN COLLINSVILLE COMMERCE COMO COOPER COPPER CANYON COPPERAS COVE CORSICANA COVINGTON COYOTE FLATS CRAWFORD CROSS ROADS CUMBY DAWSON DECATUR DELEON WATAUGA WAXAHACHIE WESTLAKE WESTOVER HILLS WHITE SETTLEMENT WHITESBORO WICHITA FALLS WOODWAY WYLIE DEPORT DETROIT DODD CITY DOUBLE OAK DUBLIN EARLY ECTOR EDOM ELECTRA EMHOUSE EUSTACE EVANT FAIRFIELD FERRIS FRANKLIN FRANKSTON FREDERICKSBURG GATESVILLE GEORGETOWN GLEN ROSE GLENN HEIGHTS GODLEY GOLDTHWAITE GOODLOW GORDON GOREE GORMAN GRANBURY GRANDVIEW GRANGER GREENVILLE GROESBECK GUSTINE HAMLIN HAMILTON Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 20 Cities with Rate Effective 4/01/2018 (Continued) HAWLEY HEARNE HEATH HEBRON HENRIETTA HICKORY GREEK HICO HILLSBORO HOLLAND HOLLIDAY HOWE HUBBARD HUTCHINS HUTTO IMPACT IREDELL ITALY ITASCA JEWETT JOSEPHINE JOSHUA KERENS KNOLLWOOD KNOX CITY KOSSE KURTEN LACY-LAKEVIEW LADONIA LAKE DALLAS LAKEPORT LAMPASAS LANCASTER LAVON LAWN LEANDER LEONA LEONARD LEXINGTON LINDSAY LIPAN LITTLE RIVER ACADEMY LLANO LOMETA LONE OAK LONGVIEW LORAINE LOTT LUEDERS MABANK MALONE MANOR MARBLE FALLS MARLIN MART MAYPEARL MCGREGOR MCLENDON-CHISHOLM MEGARGEL MERIDIAN MERKEL MEXIA MIDWAY MILES MILFORD MILLSAP MOBILE CITY MOODY MORAN MORGAN MUENSTER MUNDAY MURCHISON NEVADA NEW CHAPEL HILL NEWCASTLE NOLANVILLE NORMANGEE NOVICE OAK POINT OAKWOOD O'BRIEN CO-OP GIN OGLESBY OLNEY PALMER PARADISE PECAN GAP PENELOPE PFLUGERVILLE PILOT POINT PLEASANT VALLEY POINT POST OAK BEND POWELL POYNOR PRINCETON PUTNAM QUANAH QUINLAN RANGER RAVENNA RENO (LAMAR COUNTY) RETREAT RICE RIESEL RIO VISTA ROBERT LEE ROBY ROCHESTER ROCKDALE ROGERS ROSEBUD ROSS ROTAN ROUND ROCK ROXTON RULE RUNAWAY BAY SADLER SAINT JO SAN ANGELO SAN SABA SANCTUARY SANGER SANTA ANNA SAVOY SCURRY SEYMOUR SHADY SHORES SOMERVILLE SOUTH MOUNTAIN SOUTHMAYD STAR HARBOR STOCKTON BEND STRAWN STREETMAN SUN VALLEY SUNNYVALE TALTY TAYLOR TEAGUE TEHUACANA THORNDALE THORNTON THRALL THROCKMORTON TIOGA TOCO Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE:T - TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS AND UNINCORPORATED AREAS EFFECTIVE DATE:Bills Rendered on or after 10/01/2018 PAGE: 21 Cities with Rate Effective 4/01/2018 (Continued) TOM BEAN TRENT TRENTON TRINIDAD TROY TUSGOLA TYE VALLEY MILLS VALLEY VIEW VAN ALSTYNE WALNUT SPRINGS WEINERT WEST WESTWORTH VILLAGE WHITEHOUSE WHITEWRIGHT WHITNEY WILMER WINDOM WINTERS WIXON VALLEY WOLFE CITY WORTHAM YANTIS Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER:WNA - WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 11/01/2018 PAGE: Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: WNAF Where I WNAFI Rj HSFj NDD ADD Blj (HSFi (NDD-ADD)) Ri (BLi (HSFj X ADD) ) any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification Weather Normalization Adjustment Factor for the i^*^ rate schedule or classification expressed in cents per Ccf Commodity Charge rate of temperature sensitive sales for the i^^ schedule or classification. heat sensitive factor for the i^*^ schedule or classification divided by the average bill count in that class billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. billing cycle actual heating degree days. base load sales for the i^l^ schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNAi= WNAFi X qy Where qy is the relevant sales quantity for the jth customer in ith rate schedule. Res 18-33 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER:WNA-WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO:ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE:Bills Rendered on or after 11/01/2018 PAGE: Base Use/Heat Use Factors Residential Commercial Weather Station Abilene Base use Ccf 9.77 Heat use Ccf/HDD 0.1201 Base use Ccf 99.33 Heat use Ccf/HDD 0.5737 Austin 10.38 0.1493 201.46 0.8942 Dallas 13.17 0.2062 183.71 1.0046 Waco 9.26 0.1323 124.57 0.6398 Wichita Falls 11.62 0.1278 114.97 0.5226 Weather Normalization Adjustment (WNA^ Report On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated Its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division. Res 18-33 Exhibit B Pensions and Retiree Medical Benefits Res 18-33 Executive BenefitPian (e) ATMOS ENERGY CORP., MID-TEX DIVISIONPENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVALTEST YEAR ENDING DECEMBER 31, 2017Shared ServicesMid-Tex DirectLineNo.DescriptionPensionAccount PlanPost-EmploymentBenefit PlanPensionAccount PianSuppiementalPost-EmploymentBenefit PianAdjustmentTotai(a)(b)(c)(d)(f)(9)12Fiscal Year 2018 Wiilis Towers Watson Report, as adjustedAllocation to Mid-Tex$ 4,082,90643.65%$ 2,703,89843.55%$ 6,964,30771.24%$ 188,360100.00%$ 3,724,16871.24%34Fiscal Year 2018 Actuariaily Determined Benefit Costs (Ln 1 x Ln 2)O&M and Capital Allocation Factor$ 1,778,092100.00%$ 1,177,539100.00%$ 4,961,241100.00%$ 188,360100.00%$ 2,653,027100.00%5Fiscai Year 2018 Willis Towers Watson Benefit Costs To Approve(Excluding Removed Cost Centers) (Ln 3 x Ln 4)$ 1,778,092$ 1,177,539$ 4,961,241$ 188,360$ 2,653,027$ 10,758,2606789Summary of Costs to Approve (1):1011O&M Expense Factor (WP_F-2.3, Ln 2)80.15%80.15%40.05%19.03%40.05%12131415Total Pension Account PlanTotal Post-Employment Benefit PlanTotal Supplemental Executive Benefit Plan$ 1,425,108$ 943,775$ 1,987,133$ 35,837$ 1,062,621$ 3,412,2412,006,39635,83716Total (Ln13 + Ln14 + Ln15)$ 1,425,108$ 943,775$ 1,987,133$ 35,837$ 1,062,621$ 5,454,474171819202122Note:1. Mid-Tex is proposing that the fiscai year 2018 Wiilis Towers Watson actuariai amounts shown on WP_F-2.3 and WP_F-2.3.1, be approved by the RRM Cities as thebenchmark amounts to be used to calcuiate the regulatory asset or liability for future periods. The Company is requesting that the benchmark amount approved by theRRM Cities for future periods include only the expense amount. The amount attributable to capital would continue to be recorded to utility plant through the overheadprocess as described in the CAM.Res 18-33 Exhibit C Amortization of Regulatory Liability Res 18-33 ATMOS ENERGY CORP., MID-TEX DIVISIONRATE BASE ADJUSTMENTSTEST YEAR ENDING DECEMBER 31, 2017AMORTIZATION OF REGULATORY LIABILITYLineNo.Year EndedDec. 31Beginning of YearRate BaseAdjustmentAmountAnnualAmortization (1)End of YearRate BaseAdjustmentAmountBalance as ofDecember 31,2017(a)(b)(c)(d)12017$289,813,47922018 $289,813,479 $12,075,562277,737,91832019277,737,91812,075,562265,662,35642020265,662,35612,075,562253,586,79552021253,586,79512,075,562241,511,23362022241,511,23312,075,562229,435,67172023229,435,67112,075,562217,360,11082024217,360,11012,075,562205,284,54892025205,284,54812,075,562193,208,986102026193,208,98612,075,562181,133,425112027181,133,42512,075,562169,057,863122028169,057,86312,075,562156,982,301132029156,982,30112,075,562144,906,740142030144,906,74012,075,562132,831,178152031132,831,17812,075,562120,755,616162032120,755,61612,075,562108,680,055172033108,680,05512,075,56296,604,49318203496,604,49312,075,56284,528,93219203584,528,93212,075,56272,453,37020203672,453,37012,075,56260,377,80821203760,377,80812,075,56248,302,24722203848,302,24712,075,56236,226,68523203936,226,68512,075,56224,151,12324204024,151,12312,075,56212,075,56225204112,075,56212,075,562(0)Z.O27Note:281. The annual amortization of a 24 year recovery period is based on the(e)289,813,479Res 18-33