HomeMy WebLinkAbout2016-3776 - Ordinance - 06/09/2016ORDINANCE NO. 2016-3776
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS
CITIES STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID
TEX DIVISION REGARDING THE COMPANY'S 2016 RA TE REVIEW MECHANISM
FILINGS; DECLARING EXISTING RA TES TO BE UNREASONABLE; ADOPTING
TARIFFS THAT REFLECT RA TE ADJUSTMENTS CONSISTENT WITH THE
NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE
SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC
INTEREST; REQUIRING THE COMPANY TO REIMBURSE ACSC'S REASONABLE
RA TEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE WAS
PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN
MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE
DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY
AND THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of College Station, 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, 2016, Atmos Mid-Tex filed its 2016 RRM rate request with
ACSC Cities; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2016 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 $29.9
million on a system-wide basis; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just,
reasonable, and in the public interest; and
1
Ordinance No. 2016-3776 Page 2of14
WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable
expenses associated with RRM applications;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF COLLEGE STATION, TEXAS:
Part 1: That the findings set forth in this Ordinance are hereby in all things approved.
Part 2: That the City Council finds that the settled amount of an increase in revenues of $29.9
million on a system-wide basis represents a comprehensive settlement of gas utility
rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex
within the municipal limits arising from Atmos Mid-Tex's 2016 RRM filing is in the
public interest, and is consistent with the City's authority under Section 103.001 of the
Texas Utilities Code.
Part 3: That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment
A, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover
annually an additional $29.9 million in revenue over the amount allowed under
currently approved rates, as shown in the Proof of Revenues attached hereto and
incorporated herein as Attachment B; such tariffs are hereby adopted.
Part 4: That the ratemaking treatment for pensions and other post-employment benefits in
Atmos Mid-Tex's next RRM filing shall be as set forth on Attachment C, attached
hereto and incorporated herein.
Part 5: That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the
ACSC in processing the Company's 2016 RRM filing.
Part 6: That to the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Ordinance, it is hereby repealed.
Part 7: That the meeting at which this Ordinance was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 5 51.
Part 8: That if any one or more sections or clauses of this Ordinance is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the
remaining provisions of this Ordinance, and the remaining provisions of the Ordinance
shall be interpreted as if the offending section or clause never existed.
Part 9: That consistent with the City Ordinance that established the RRM process, this
Ordinance shall become effective from and after its passage with rates authorized by
attached tariffs to be effective for bills rendered on or after June 1, 2016.
2
Ordinance No. 2016-3776 Page 3of14
Part 10: That 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 A venue, Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this 9111 day of June, 2016.
ATTEST: APPROVED AS TO FORM:
j1, � City Secr� City Attorney
2557/26/7087606
3
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R -RESIDENTIAL SALES
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 1 PAGE: 12
Application
Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured
through one meter.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the
amounts due under the riders listed below:
Charge Amount
Customer Charge per Bill $ 19.10 per month
Rider CEE Surcharge $ 0.02 per month1
Total Customer Charge $ 19.12 per month
Commodity Charge -All Ccf $0.11378 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Agreement
An Agreement for Gas Service may be required.
Notice
Service hereunder and the rates for services provided are subject to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
1Reference Rider CEE -Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2015.
Ordinance No. 2016-3776 Page 4 of 14
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: C -COMMERCIAL SALES
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 I PAGE: 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 $41.75 per month
Rider CEE Surcharge $ 0.02 per month1
Total Customer Charge $41.77 per month
Commodity Charge -All Ccf $ 0.08494 per Ccf
Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated
in accordance with Part (a) and Part (b), respectively, of Rider GCR.
Weather Normalization Adjustment: Plus or Minus an amount for weather normalization
calculated in accordance with Rider WNA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for 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 GUO 10170. Surcharge billing effective July 1, 2015.
Ordinance No. 2016-3776 Page 5 of 14
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I -INDUSTRIAL SALES
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/0 1/20 16 I 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 $ 738.00 per month
First 0 MMBtu to 1,500 MMBtu $ 0.3096 per MMBtu
Next 3,500 MMBtu $ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0486 per MMBtu
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. 2016-3776 Page 6 of 14
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I -INDUSTRIAL SALES
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 06/01/2016 I 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.
Ordinance No. 2016-3776 Page 7 of 14
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T-TRANSPORTATION
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 0610112016 I PAGE: 16
Application
Applicable, in the event that Company has entered into a Transportation Agreement, to a customer
directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the
transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for
use in Customer's facility.
Type of Service
Where service of the type desired by Customer is not already available at the Point of Delivery, additional
charges and special contract arrangements between Company and Customer may be required prior to
service being furnished.
Monthly Rate
Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts
and quantities due under the riders listed below:
Charge Amount
Customer Charge per Meter $ 738.00 per month
First 0 MMBtu to 1,500 MM Btu $ 0.3096 per MMBtu
Next 3,500 MMBtu $ 0.2267 per MMBtu
All MMBtu over 5,000 MMBtu $ 0.0486 per MMBtu
Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in
accordance with Part (b) of Rider GCR.
Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA.
Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider
FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated
municipality.
Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX.
Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s).
Imbalance Fees
All fees charged to Customer under this Rate Schedule will be charged based on the quantities
determined under the applicable Transportation Agreement and quantities will not be aggregated for any
Customer with multiple Transportation Agreements for the purposes of such fees.
Monthly Imbalance Fees
Customer shall pay Company the greater of (i) $0.10 per MM Btu, or (ii) 150% of the difference per MM Btu
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. 2016-3776 Page 8 of 14
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: T-TRANSPORTATION
Attachment A
RRC Tariff No:
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 0610112016 I 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 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 subj ect to the orders of regulatory bodies
having jurisdiction and to the Company's Tariff for Gas Service.
Special Conditions
In order to receive service under Rate 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. 2016-3776 Page 9 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 11/01/2016 I PAGE: 41
Provisions for Adjustment
The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized
by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall
be adjusted by an amount hereinafter described, which amount is referred to as the "Weather
Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature
sensitive residential and commercial bills based on meters read during the revenue months of November
through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls.
Computation of Weather Normalization Adjustment
The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent
per Ccf by the following formula:
WNAFi =
Where
=
WNAFi =
Ri =
HSFi =
NOD =
ADD =
Bli =
R I
(HSFi
(Bli
x (NOD-ADD))
+ (HSFi x ADD) )
any particular Rate Schedule or billing classification within any such
particular Rate Schedule that contains more than one billing classification
Weather Normalization Adjustment Factor for the ith rate schedule or
classification expressed in cents per Ccf
Commodity Charge rate of temperature sensitive sales for the ith schedule or
classification.
heat sensitive factor for the ith schedule or classification divided by the
average bill count in that class
billing cycle normal heating degree days calculated as the simple ten-year
average of actual heating degree days.
billing cycle actual heating degree days.
base load sales for the ith schedule or classification divided by the average
bill count in that class
The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as:
WNAi=
Where qi is the relevant sales quantity for the jth customer in ith rate schedule.
Ordinance No. 2016-3776 Page10of14
Attachment A
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: WNA-WEATHER NORMALIZATION ADJUSTMENT
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION EXCEPT THE CITY OF
DALLAS AND UNINCORPORATED AREAS
EFFECTIVE DATE: Bills Rendered on or after 11/01/2016 I PAGE: 42
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use Heat use
Weather Station Ccf Ccf/HDD Ccf Ccf/HDD
Abilene 10.09 0.1392 98.01 0.6440
Austin 11.21 0.1551 203.36 0.8564
Dallas 13.72 0.2048 189.83 0.9984
Waco 9.89 0.1411 129.75 0.6695
Wichita 11.49 0.1506 122.35 0.5967
Falls
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.
Ordinance No. 2016-3776 Page 11 of 14
File Date: March 1, 2016
ATMOS ENERGY CORP., MID-TEX DIVISION
PROPOSED TARIFF STRUCTURE (BEFORE RATE CASE EXPENSE RECOVERY)
TEST YEAR ENDING DECEMBER 31, 2015
(a) (b)
1 Proposed Change In Rates:
2 Proposed Change In Rates without Revenue Related Taxes:
3
4
5
6
7 Residential
8 Commercial
9 Industrial and Transportation
10 Net Revenue Requirements GUD No. 10170
11
12
13
14
Revenue Requirements
$ 338,431,486
84,223,622
11,490,316
$ 434,145,424
(c)
$ 29,603,205
$ 27,447,850
Allocations
77.95%
19.40%
2.65%
(d) (e) (f)
Schedule A
Ln 1 divided by factor on WP _F-5.1
Per GUD 10170 Final Order
Per GUD 10170 Final Order
Per GUD 10170 Final Order
(g) (h) (i)
Attachm 3
Proof of Revenues
0) (k)
15
16 r.IWi""'1t�h�P�ro_p_o_rt�i-o -na�l�l-ncr�e-a-se �a�ll -c�la_s_s-es-,.b-ut�R=-e�si�d-e -nt7ia�l -a-n�d-a-470�%�,-r-e�si�d-e-nt7ia�l�b-a-s-e -c�h-a -rg-e�i-n -cr-e-a-s -e:������I With Customer Charges Rounded Off and residential base charge increase for 2015 limited to $0.50 per RRM tariff:
17
18 Current Prospective Revenues
19
20 Residential Base Charge $ 18.56 $ 0.48 $ 8,558,622
21 Residential Consumption Charge $ 0.09931 $ 0.01540 12,837,933
22 Commercial Base Charge $ 39.87 $ 1.81 2,662,423
23 Commercial Consumption Charge $ 0.08020 $ 0.00480 2,662,423
24 I& T Base Charge $ 697.35 $ 38.03 363,224
25 l&T Consumption Charge Tier 1 MMBTU $ 0.2937 $ 0.0166 172,167
26 l&T Consumption Charge Tier 2 MMBTU $ 0.2151 $ 0.0121 139,070
27 l&T Consumption Charge Tier 3 MM BTU $ 0.0461 $ 0.0026 51,988
28 $ 27,447,850
29
Ordinance No. 2016-3776
Proposed Change
Residential Base Charge $ 0.52 $
Residential Consumption Charge $ 0.01447
Commercial Base Charge $ 1.83
Commercial Consumption Charge $ 0.00474
I& T Base Charge $ 39.65
l&T Consumption Charge Tier 1 MMBTU $ 0.0159
l&T Consumption Charge Tier 2 MMBTU $ 0.0116
I& T Consumption Charge Tier 3 MMBTU $ 0.0025
$
Proposed
Change In
Revenues
9,335,278
12,061,297
2,697, 162
2,626,475
378,728
165,150
132,888
49,955
27,446,933
Proposed
$
$
$
$
$
$
$
$
Rates Proposed Revenues
19.08
0.11378
41.70
0.08494
737.00
0.3096
0.2267
0.0486
$ 339,813,673
94,839,970
61,390,268
47,065,984
7,039,815
3,215,747
2,597,042
971,117
$ 556,933,616
WP_J-5
Page 2 of 4
Page 12of14
File Date: March 1, 2016
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT
TEST YEAR ENDING DECEMBER 31, 2015
Shared Services
Post-
Pension Retirement Pension
Mid-Tex Direct
Post-
Supplemental Retirement
Line Account Plan Medical Plan Account Plan Executive Benefit Medical Plan
No. Description
(a)
Fiscal Year 2016 Towers Watson Report as adjusted (1), (3)
2 O&M Expense Factor (2)
3 Fiscal Year 2016 Actuarially Determined O&M Benefits (Ln 1 x Ln 2)
4 Allocation to Mid-Tex (2)
5 Mid-Tex Benefits Expense Included in Rates -Proposed (Ln 3 x Ln 4)
6
Mid-Tex Benefits Expense per GUD 10359 and RRM Test Year Ending
7 December 31, 2014 Benchmark (4)
8
9 Test Year Adjustment (Line 5 minus Line 7)
10
11 Adjustment Summary:
12 Account 922
13 Account 926
14 Total (Ln 12 plus Ln 13)
15
16
17 Notes:
18 1. Studies not applicable to Mid-Tex or Shared Services are omitted.
$
$
$
$
$
$
$
("PAP") ("FAS 106")
(b) (c)
5,101,680 $ 2,896,450 $
96.41% 96.41%
4,918,540 $ 2,792,473 $
40.56% 40.56%
1,995,016 $ 1,132,659 $
2,831,859 $ 2,013,260 $
(836,844) $ (880,601) $
(836,844) $ (880,601) $
(836,844) $ (880,601) $
19 2. The factors on Lines 2 and 4 are based on the factors in 2016 RRM (Test Year Ending December 31,2015).
20 3. SSU amounts exclude cost centers which do not allocate to Mid-Tex for rate making purposes.
("PAP") Plan f"SERP"l
(d) (e)
7,840,683 $ 150,433 $
37.42% 20.77%
2,933,599 $ 31,249 $
71.52% 100.00%
2,098,222 $ 31,249 $
2,925,600 $ 34,809 $
(827,379) $ (3,561) $
$ $
(827,379) (3,561)
(827,379) $ (3,561) $
21 4. GUO No. 10359 is the benchmark for January-May which is the same benchmark as used in the RRM TYE December 31, 2014 for June-December.
Ordinance No. 2016-3776
("FAS 106")
(f)
4,466,430
37.42%
1,671,119
71.52%
1, 195,248 $
2,695,721 $
(1,500,472) $
$
(1,500,472)
(1,500,4r2) $
Attachment C
Adjustment
Total
(g)
6,452,393
10,501,250
(4,048,856)
(1,717,445)
(2,331,412)
(4,048,856)
WP_F-2.3
Page 1 of 2
Page 13 of14
Line
No.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ATMOS ENERGY CORP., MID-TEX DIVISION
PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL
TEST YEAR ENDING DECEMBER 31, 2015
Shared Services
Pension Post-Retirement Pension
Mid-Tex Direct
Supplemental
Account Plan Medical Plan Account Plan Executive Benefit
Descriotion ("PAP") ("FAS 106") ("PAP"l Plan ("SERP"l
(a) (b) (c) (d) (e)
Fiscal Year 2016 Towers Watson Report (excluding Removed Cost
Centers) $ 5,101,680 $ 2,896,450 $ 7,840,683 $ 150,433
Allocation to Mid-Tex 40.56% 40.56% 71.52% 100.00%
FY16 Towers Watson Benefit Costs (excluding Removed Cost
Centers) Allocated to MTX (Ln 1 x Ln 2) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433
O&M and Capital Allocation Factor 100.00% 100.00% 100.00% 100.00%
FY 16 Towers Watson Benefit Costs To Approve (excluding
Removed Cost Centers) (Ln 3 x Ln 4) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433
Summary of Costs to Approve:
Total Pension Account Plan ("PAP") $ 2,069,299 $ 5,607,955
Total Post-Retirement Medical Plan ("FAS 106") $ 1,174,833
Total Supplemental Executive Retirement Plan ("SERP'') $ 150,433
Total (Ln 10 + Ln 11+Ln 12) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433
O&M Expense Factor 96.41% 96.41% 37.42% 20.77%
Expense Portion (Ln 13 x Ln 16) $ 1,995,016 $ 1,132,659 $ 2,098,222 $ 31,249
Capital Factor 3.59% 3.59% 62.58% 79.23%
Capital Portion (Ln 13 x Ln 20) $ 74,283 $ 42,174 $ 3,509,733 $ 119,184
Total (Ln 18 + Ln 22) $ 2,069,299 $ 1,174,833 $ 5,607,955 $ 150,433
Ordinance No. 2016-3776
Attachment C
Post-Retirement
Medical Plan Adjustment
("FAS 106"} Total
(f) (g)
$ 4,466,430
71.52%
$ 3,194,561
100.00%
$ 3, 194,561 $ 12,197,081
$ 7,677,254
$ 3,194,561 4,369,394
150,433
$ 3,194,561 $ 12, 197,081
37.42%
$ 1,195,248 $ 6,452,393
62.58%
$ 1,999,313 $ 5,744,687
$ 3,194,561 $ 12, 197,081
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