HomeMy WebLinkAbout2155 05-23-2017 ORDINANCE NO. 2155
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EULESS,
TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE
ATMOS CITIES STEERING COMMITTEE ("ACSC") AND ATMOS
ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY'S
2017 RATE REVIEW MECHANISM FILINGS; DECLARING EXISTING
RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT
REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY
THE SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN
THE PUBLIC INTEREST; REQUIRING RECONCILIATION AND RATE
ADJUSTMENTS IF FEDERAL INCOME TAX RATES CHANGE;
TERMINATING THE RRM PROCESS FOR 2018 PENDING
RENEGOTIATION OF RRM TERMS AND CONDITIONS; REQUIRING
THE COMPANY TO REIMBURSE ACSC'S REASONABLE
RATEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE
WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE;
DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND THE ACSC'S LEGAL
COUNSEL.
WHEREAS, the City of Euless, 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 City is a member of the Atmos Cities Steering Committee
("ACSC"), a coalition of similarly-situated cities served by Atmos Mid-Tex ("ACSC Cities")
that have joined together to facilitate the review of, and response to, natural gas issues
affecting rates charged in the Atmos 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, on March 1, 2017, Atmos Mid-Tex filed its 2017 RRM rate request
with ACSC Cities; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2017 RRM filing
through its Executive Committee, assisted by ACSC's attorneys and consultants, to
resolve issues identified in the Company's RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and
consultants, recommend that ACSC Cities approve an increase in base rates for Atmos
Mid-Tex of $48 million on a system-wide basis; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
recommendation of the ACSC Executive Committee, are agreed to by the Company, and
are just, reasonable, and in the public interest;
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
WHEREAS, the Company and ACSC have agreed that rates should be adjusted
if any change in federal income tax rates is implemented during the period that rates
approved herein remain in place; and
WHEREAS, because ACSC believes that certain provisions of the current terms
and conditions of the RRM tariff are inconsistent with market conditions, the City expects
renegotiation of the current RRM tariff in the Summer of 2017.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS, THAT:
SECTION 1.
the findings set forth in this Ordinance are hereby in all things approved.
SECTION 2.
The City Council finds that the settled amount of an increase in revenues of $48 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 2017 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.
The existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable.
The new tariffs attached hereto and incorporated herein as Attachment A, are just and
reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional
$48 million in revenue over the amount allowed under currently approved rates, as shown
in the Proof of Revenues attached hereto and incorporated herein as Attachment B;
such tariffs are hereby adopted.
Ordinance No. 2155, Page 2 of 14
SECTION 4.
The ratemaking treatment for pensions and other post-employment benefits in Atmos
Mid-Tex's next RRM filing shall be as set forth on Attachment C, attached hereto and
incorporated herein.
SECTION 5.
Consistent with Texas Utilities Code Section 104.055(c), Atmos Energy's recovery of
federal income tax expense through the Rider RRM has been computed using the
statutory income tax rate. In the event that a change in the statutory income tax rate is
implemented during the Rider RRM Rate Effective Date, Atmos Energy shall reconcile
the difference between the amount of federal income tax expense included in the Rider
RRM calculation for the Rate Effective Date with the amount of federal income tax
expense authorized under the new statutory income tax rate. The reconciliation period
shall be from the date on which any new statutory income tax rate is implemented through
the Rate Effective Date. An interest component calculated at the customer deposit
interest rate then in effect as approved by the Railroad Commission of Texas shall be
applied to the federal income tax expense reconciliation. Further, any required
reconciliation of federal income tax expense shall be included as part of Atmos Mid-Tex's
next annual RRM filing and shall be returned to or recovered from customers as a one-
time credit or surcharge to the customer's bill.
SECTION 6.
The City requires renegotiation of RRM tariff terms and conditions during the Summer of
2017. If an agreed renegotiated RRM tariff cannot be achieved, the City will terminate
the RRM process and consider initiation of a traditional rate case to reduce the
Company's authorized return on equity.
SECTION 7.
Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC in
processing the Company's 2017 RRM filing.
SECTION 8.
To the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Ordinance, it is hereby repealed.
SECTION 9.
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.
Ordinance No. 2155, Page 3 of 14
SECTION 10.
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 11.
Consistent with the City Ordinance that established the RRM process, this Ordinance
shall become effective from and after its passage with rates authorized by attached tariffs
to be effective for bills rendered on or after June 1, 2017.
SECTION 12.
A copy of this Ordinance 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.
PRESENTED AND PASSED ON FIRST AND FINAL READING at a regular
meeting of the Euless City Council on May 23, 2017, by a vote of 7 ayes, o nays,
and _abstentions.
APPROVED:
j?sc
Lind 1 artin.'Mayor
ATTEST:
x
r
Kim Sutter, TRMC, City Secretary
APPROVED AS TO FORM:
CU lc(
Wayne Olson, City Attorney
Ordinance No. 2155, Page 4 of 14
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R—RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2017 PAGE:
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 19.60 per month
Rider CEE Surcharge $ 0.02 per month'
Total Customer Charge $ 19.62 per month
Commodity Charge—All Ccf $0.14427 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 1,2016.
Ordinance No. 2155, Page 5 of 14
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C—COMMERCIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2017 PAGE:
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 $44.70 per month
Rider CEE Surcharge $ 0.08 per month'
Total Customer Charge $44.78 per month
Commodity Charge—All Ccf $0.09279 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.
1 Reference Rider CEE-Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1,2016.
Ordinance No. 2155, Page 6 of 14
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—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 06/01/2017 PAGE:
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 $799.75 per month
First 0 MMBtu to 1,500 MMBtu $ 0.3374 per MMBtu
Next 3,500 MMBtu $ 0.2470 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0530 per MMBtu
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part(a) and Part(b), respectively, of Rider GCR.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges 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 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.
Ordinance No. 2155, Page 7 of 14
Attachment A
MID-TEX DIVISION RRC Tariff No:
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I—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 06/01/2017 PAGE:
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.
Ordinance No. 2155, Page 8 of 14
Attachment A
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 06/01/2017 PAGE:
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 $799.75 per month
First 0 MMBtu to 1,500 MMBtu $ 0.3374 per MMBtu
Next 3,500 MMBtu $ 0.2470 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0530 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of(i) $0.10 per MMBtu, or(ii) 150% of the difference per MMBtu
between the highest and lowest "midpoint" price for the Katy point listed in Platts Gas Daily in the table
entitled "Daily Price Survey" during such month, for the MMBtu of Customer's monthly Cumulative
Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds
10% of Customer's receipt quantities for the month.
Ordinance No. 2155, Page 9 of 14
Attachment A
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 06/01/2017 PAGE:
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.
Ordinance No. 2155, Page 10 of 14
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2017 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:
(HSFi x (NDD-ADD) )
WNAFi = Ri
(BLi + (HSFi x ADD) )
Where
i = 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 Ccf
Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
HSFi = heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
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 divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNA; = WNAF; x q;1
Where q, is the relevant sales quantity for the jth customer in ith rate schedule.
Ordinance No. 2155, Page 11 of 14
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA—WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: I Bills Rendered on or after 11/01/2017 PAGE:
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 9.79 0.1347 93.16 0.6060
Austin 10.37 0.1483 190.68 0.9069
Dallas 13.36 0.2089 180.35 1.0191
Waco 9.64 0.1348 124.37 0.5791
Wichita 11.20 0.1412 107.96 0.5571
Falls
Weather Normalization Adiustment (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.
Ordinance No. 2155, Page 12 of 14
Attachment B
File Date:March 1,2017
ATMOS ENERGY CORP.,MID-TEX DIVISION
PROPOSED TARIFF STRUCTURE(BEFORE RATE CASE EXPENSE RECOVERY)
TEST YEAR ENDING DECEMBER 31,2016
(a) (b) (c) (d) (e) (f) (g) (h) (i) (i) (k)
1 Proposed Change In Rates: $ 48,000,000 Schedule A
2 Proposed Change In Rates without Revenue Related Taxes: $ 44,800,457 Ln 1 divided by factor on WP_F-5.1
3
4
5
6 Revenue Requirements Allocations
7 Residential $ 338,431,486 77.95% Per GUD 10170 Final Order
8 Commercial 84,223,622 19.40% Per GUD 10170 Final Order
9 Industrial and Transportation 11,490,316 2.65% Per GUD 10170 Final Order
10 Net Revenue Requirements GUD No.10170 $ 434,145,424
11
12
13
14
15
16 With Proportional Increase all classes but Residential and a 40%residential base charge increase: In accordance with RRM tariff:
17
Proposed
Change In Proposed
18 Current Prospective Revenues Proposed Change Revenues Rates Proposed Revenues
19
20 Residential Base Charge $ 19.08 $ 0.77 $ 13,969,407 Residential Base Charge $ 0.52 $ 9,385,859 $ 19.60 $ 353,851,897
21 Residential Consumption Charge $ 0.11378 $ 0.02502 20,954,111 Residential Consumption Charge $ 0.03049 25,534,444 $ 0.14427 120,821,718
22 Commercial Base Charge $ 41.70 $ 2.96 4,345,614 Commercial Base Charge $ 3.00 4,409,676 $ 44.70 65,707,365
23 Commercial Consumption Charge $ 0.08494 $ 0.00797 4,345,614 Commercial Consumption Charge $ 0.00785 4,280,326 $ 0.09279 50,595,093
24 l&T Base Charge $ 737.00 $ 62.70 592,856 l&T Base Charge $ 62.75 593,364 $ 799.75 7,562,427
25 MT Consumption Charge Tier 1 MMBTU $ 0.3096 $ 0.0278 279,522 l&T Consumption Charge Tier 1 MMBTU $ 0.0278 279,726 $ 0.3374 3,394,949
26 l&T Consumption Charge Tier 2 MMBTU $ 0.2267 $ 0.0203 225,635 l&T Consumption Charge Tier 2 MMBTU $ 0.0203 225,178 $ 0.2470 2,739,848
27 l&T Consumption Charge Tier 3 MMBTU $ 0.0486 $ 0.0044 87,699 l&T Consumption Charge Tier 3 MMBTU $ 0.0044 88,488 $ 0.0530 1,065,879
28 $ 44,800,457 $ 44,797,060 $ 605,739,177
29
WP_J-5
Page 1 of 1
Ordinance No. 2155, Page 13 of 14
Attachment C
ATMOS ENERGY CORP.,MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31,2016
Shared Services Mid-Tex Direct
Pension Post-Retirement Pension Supplemental Post-Retirement
Line Account Plan Medical Plan Account Plan Executive Benefit Medical Plan Adjustment
No. Description ("PAP") ("FAS 106") ("PAP") Plan("SERP") ("FAS 106") Total
(a) (b) (c) (d) (e) (f) (g)
1 Fiscal Year 2017 Willis Towers Watson Report as adjusted(1),(3) $ 5,004,862 $ 2,864,121 $ 8,234,627 $ 194,941 $ 4,375,142
2 Allocation to Mid-Tex 45.03% 45.03% 71.23% 100.00% 71.23%
Fiscal Year 2017 Actuarially Determined O&M Benefits(Ln 1 x Ln 2)
3 $ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420
4 O&M and Capital Allocation Factor 100.00% 100.00% 100.00% 100.00% 100.00%
Fiscal Year 17 Willis Towers Watson Benefit Costs To Approve
5 (excluding Removed Cost Centers)(Ln 3 x Ln 4) $ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420 $ 12,719,968
6
7
8 Summary of Costs to Approve:
9
10 Total Pension Account Plan("PAP") $ 2,253,477 $ 5,865,537 $ 8,119,015
11 Total Post-Retirement Medical Plan("FAS 106") $ 1,289,592 $ 3,116,420 4,406,012
12 Total Supplemental Executive Retirement Plan("SERP") $ 194,941 194,941
13 Total(Ln 10+Ln 11 +Ln 12) $ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420 $ 12,719,968
14
15
16 O&M Expense Factor 74.05% 74.05% 37.75% 20.00% 37.75%
17
18 Expense Portion(Ln 13 x Ln 16) $ 1,668,700 $ 954,943 $ 2,214,432 $ 38,988 $ 1,176,551 $ 6,053,614
19
20 Capital Factor 25.95% 25.95% 62.25% 80.00% 62.25%
21
22 Capital Portion(Ln 13 x Ln 20) $ 584,777 $ 334,649 $ 3,651,105 $ 155,953 $ 1,939,870 $ 6,666,354
23
24 Total(Ln 18+Ln 22) $ 2,253,477 $ 1,289,592 $ 5,865,537 $ 194,941 $ 3,116,420 $ 12,719,968
Ordinance No. 2155, Page 14 of 14