2025-36 R - Approving Negotiated Settlement Between Atmos Regarding 2025 Rate Review Mechanism Filing; Declaring Rates UnreasonableTOWN OF PROSPER, TEXAS
RESOLUTION NO. 2025-36
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS
CITIES STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP.,
MID-TEX DIVISION REGARDING THE COMPANY'S 2025 RATE REVIEW
MECHANISM FILING; 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; 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 Prosper, Texas ("Town") 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, charges, and services 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 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 current RRM tariff was adopted by the Town in a rate ordinance in
2018; and
WHEREAS, on or about April 1, 2025, Atmos Mid -Tex fited its 2025 RRM rate request
with ACSC Cities based on a test year ending December 31, 2024, and
WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2025 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 $205.6
million on a system -wide basis with an Effective Date of October 1, 2025; and
WHEREAS, ACSC agrees that Atmos plant -in-service is reasonable; and
WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed from
future reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS, the attached tariffs (Attachment 1) 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 settlement agreement sets a new benchmark for pensions and retiree
medical benefits (Attachment 2); 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
PROSPER, TEXAS:
SECTION 1
That the findings set forth in this Resolution are hereby in all things approved.
SECTION 2
That, without prejudice to future litigation of any issue identified by ACSC, the Town
Council finds that the settled amount of an increase in revenues of $205.6 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 2025 RRM fling, is in the public interest, and is consistent with the Town's authority
under Section 103.001 of the Texas Utilities Code.
SECTION 3
That despite finding Atmos Mid-Tex's plant -in-service to be reasonable, ACSC is not
foreclosed in future cases from evaluating the reasonableness of costs associated with incidents
involving leaks of natural gas.
SECTION 4
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 1, are just
and reasonable, and are designed to allow Atmos Mid -Tex to recover annually an additional
$205.6 million on a system -wide basis, over the amount allowed under currently approved rates.
Such tariffs are hereby adopted.
SECTION 5
That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid-
Tex's next RRM filing shall be as set forth on Attachment 2, attached hereto and incorporated
herein.
Resolution No. 2025-36, Page 2
SECTION 6
That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC in
processing the Company's 2025 RRM filing.
SECTION 7
That to the extent any resolution or ordinance previously adopted by the Town 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, 2025.
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 LBJ
Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato, General Counsel to ACSC,
at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas
78701.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, BY A VOTE OF TO _CL, ON THIS THE 26TH DAY OF AUGUST,
2025.
ATTEST:
utt,Lw � S. "�tc�
Michelle Lewis Sirianni, Town Secretary
7D.- Z�w
David F. Bristol, Mayor
Resolution No. 2025-36, Page 3
APPROVED AS TO FORM AND LEGALITY:
s=- — /k. J, �-
Terrence S. Welch, Town Attorney
Resolution No. 2025-36, Page 4
ATTACHMENT 1
Resolution No. 2025-36, Page 5
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: R — RESIDENTIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2025
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
$ 23.65 per month
Rider CEE Surcharge
$ 0.03 per month'
Total Customer Charge
$ 23.68 per month
Commodity Charge — All Ccf
$ 0.74748 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, 2025.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO
EFFECTIVE DATE:
C — COMMERCIAL SALES
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
Bills Rendered on or after 10/01/2025
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
$ 94.00 per month
Rider CEE Surcharge
$ 0.01 per month'
$ 94.01 per month
Total Customer Charge
Commodity Charge — All Ccf
$ 0.22261 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.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at indtx-div-plantprotectionCa-�atmosenergy.cam.
' Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170 Surcharge billing effective July 1, 2025
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE: I — INDUSTRIAL SALES
APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2025
Application
Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 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 200 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
$ 1,848.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.7678 per MMBtu
Next 3,500 MMBtu
$ 0.5623 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.1206 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
EFFECTIVE DATE:
I — INDUSTRIAL SALES
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
Bills Rendered on or after 10/01/2025
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.
Presumption of Plant Protection Level
For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal,
regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer
believes it needs to be modeled at an alternative plant protection volume, it should contact the company
at indtx-di_y_plantprotection&tmosenergy.com.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
EFFECTIVE DATE:
T — TRANSPORTATION
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
Bills Rendered on or after 10/01/2025
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.
This tariff is not available to customers with a maximum daily demand of 1,000 MMBtu or greater and a
daily/annual load factor of 10% or less. Load factor is calculated as follows: annual usage / (maximum
daily connected demand X 365). Load factors will be recalculated once each year to determine
appropriate eligibility for Rate T.
Type of Service
Company's receipt and delivery of all gas quantities under the applicable Transportation Agreement will be
on a wholly interruptible basis subject to the Terms and Conditions incorporated in the Transportation
Agreement. If Customer is an Industrial Customer, then Customer may elect, at the reasonable discretion
of Company, to contract for Plant Protection transportation quantities defined as the minimum natural gas
required to prevent physical harm and/or protect critical safety to the plant facilities, plant personnel, or the
public when such protection cannot be achieved through the use of an alternate fuel. 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
$ 1,848.75 per month
First 0 MMBtu to 1,500 MMBtu
$ 0.7678 per MMBtu
Next 3,500 MMBtu
$ 0.5623 per MMBtu
All MMBtu over 5,000 MMBtu
$ 0.1206 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).
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RATE SCHEDULE:
APPLICABLE TO:
T — TRANSPORTATION
ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: I Bills Rendered on or after 10/01/2025
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.
Overpull Fee
Upon notification by Company of an event of interruption of Customer's deliveries, Customer will, for each
MMBtu delivered in excess of the stated level of 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.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: SUR — SURCHARGES
ij APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF
EFFECTIVE DATE: Bills Rendered on or after 10/01/2025
Application
This Rider is applicable to customer classes in the incorporated areas under the RRM tariff as authorized
by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute,
ordinance, order, rule, contract, or agreement.
Monthly Calculation
Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract,
or agreement.
FASB ASC 740-10 (Fin481 Refund
Applicable to Customers taking service under Rate Schedules R — Residential, C — Commercial, I —
Industrial and T — Transportation.
To ensure that gas utility customers receive the benefit associated with the changes in the Company's
Uncertain Tax Positions ("UTPs") arising from recognition of Texas Margin Tax returns.
The decrease shall be calculated as follows:
Beginning with implementation of rates from the negotiated RRM Tariff, and annually thereafter, the
portion of UTP liabilities identified in Schedule FIN48-1.1 for the prior fiscal year shall be allocated based
on the final class allocations of GUD No. 10170 as per the RRM Tariff, divided by the annual bill count to
derive rates to be refunded through Rider SUR in the subsequent fiscal year. Each year's calculation will
include a true -up (+ or - ) due to account for over/under collections. Amounts identified in Schedule
FIN48-1 shall be adjusted to reflect any audit adjustments received from the Texas Comptroller of Public
Accounts.
No action on the part of the Regulatory Authority is required to give effect to the amount to be refunded to
customers. However, any amount refunded to customers shall be fully subject to review for
reasonableness and accuracy in the gas utility's next statement of intent proceeding with the Railroad
Commission of Texas, and if applicable, the gas utility shall be required to reconcile any discrepancies.
The following refund as authorized in the most recent negotiated RRM Tariff shall be refunded to each
Rate Schedules R — Residential, C — Commercial, I — Industrial and T — Transportation customer's
monthly bill in each month for a 12-month period. The refund amount by month by Rate Schedule is
shown in the table below:
Rate Schedules
Rate
$ 0.12
$ 0.41
$ 8.68
Rate R — Residential Sales
Rate C — Commercial Sales
Rate I — Industrial Sales
Rate T — Transportation
$ 8.68
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: — TAX — TAX ADJUSTMENT
APPLICABLE TO: Entire Division as Set Forth Below
EFFECTIVE DATE: Bills Rendered on or after 10/01/2025
Application
PAGE:
Applicable to Customers taking service under Rate R, Rate C, Rate I, and Rate T, except for exempt
State Agency Customers, to the extent of state gross receipts taxes only.
1. State Gross Receipts Taxes
Applicability - Entire Division except for Unincorporated Areas
Each monthly bill shall be adjusted for Miscellaneous state gross receipts taxes imposed by Sections
182-021 - 182-025 of the Texas Tax Code.
Entire Division
Each monthly bill shall also be adjusted by an amount equivalent to the amount of all applicable taxes
and any other governmental impositions, rentals, fees, or charges (except state, county, city, and special
district ad valorem taxes and taxes on net income) levied, assessed, or imposed upon or allocated to
Company with respect to the Gas Service provided to Customer by Company, and any associated
facilities involved in the performance of such Gas Service. Each monthly bill shall also be adjusted by an
amount equivalent to the proportionate part of any increase or decrease of any tax and any other
governmental imposition, rental, fee, or charge (except state, county, city, and special district ad valorem
taxes and taxes on net income) levied, assessed, or imposed subsequent to the effective date of this
tariff, upon or allocated to Company's operations, by any new or amended law, ordinance, or contract.
2. Federal or State Tax Law or Rate Changes:
Applicability — All Customers in the Mid -Tex Division ("MTX") Under the RRM Tariff
Applicable to Customers taking service under Rate R, Rate C, Rate I, and Rate T.
To ensure that gas utility customers receive the benefits or costs associated with the changes in tax rates
at a federal or state level, MTX shall establish and accrue on its books and records, as of the effective
date of the federal or state tax law or rate change: 1) regulatory liabilities to reflect the impact of a
decrease in federal corporate income tax rates or state margin tax rates; or, 2) regulatory assets to reflect
the impact of an increase in federal corporate income tax rates or state margin tax rates.
The gas utility may not change rates to give effect to a change in Federal or State Tax law or rates
through the Rider TAX unless and until the city issues final authorization, an Accounting Order, or other
express guidance authorizing such recovery through the RRM process.
Company may also not change rates to capture the impacts associated with the effects of Public Law
117-169, 136 STAT. 1818 of August 16, 2022 ("Tax Act 2022") and certain other tax -related costs that will
change from the amounts included in the most recent base revenue requirement established through an
RRM filing unless and until the city issues a final authorization, an Accounting Order, or other express
guidance authorizing such recovery.
Upon receipt of authorization from the city through an Accounting Order, final authorization or other
express guidance, the calculation applicable to the aforementioned federal or state tax rate or law
changes are as follows; however, to the extent there is a conflict between the calculation or methodology
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: I TAX —TAX ADJUSTMENT
APPLICABLE TO: Entire Division as Set Forth Below
EFFECTIVE DATE: I Bills Rendered on or after 10/01/2025 1 PAGE:
prescribed by an Accounting Order, final authorization, or other express guidance, and those contained in
this rate schedule, the Accounting Order, final authorization, or other express guidance controls:
Calculations
1. With regard to changes in the tax rates at a federal or state level, the increase or decrease shall
be calculated as follows:
a. A portion of the gas utility's revenue representing the difference between: 1) the cost of
service as approved by the Commission or the applicable regulatory authority in the gas
utility's most recent statement of intent or other rate proceeding, and 2) the cost of service
that would have resulted had the rates been based on the new federal income tax rate
(increase or decrease) or state margin taxes (increase or decrease), as of the effective date
of the change;
b. If applicable, the portion of the gas utility's revenue representing the difference between: 1)
each Interim Rate Adjustment surcharge approved by the regulatory authority since the gas
utility's most recent statement of intent or other rate proceeding, and 2) each Interim Rate
Adjustment surcharge that would have resulted had the surcharges been based on the new
federal income tax rate (increase or decrease) or state margin taxes (increase or decrease),
as of the effective date of the change; and
c. The excess or deficient deferred tax reserve, including any associated gross up in taxes,
caused by the reduction or increase in the federal corporate income tax rate or state related
tax increases, as of the effective date of the change.
Upon the receipt of authorization from the Commission or applicable regulatory authority, the gas utility
shall separately refund to customers based on a decrease in federal or state tax rates or separately
collect from customers based on an increase in federal or state tax rates within twelve (12) months or,
pursuant to applicable Internal Revenue Code ("IRC") rules and regulations, as follows:
d. The amount collected/refunded by the gas utility that reflects the difference in base rates
between: 1) the cost of service approved by the regulatory authority in the gas utility's most
recent statement of intent rate proceeding, and 2) the cost of service that would have resulted
had the rates been based upon the new federal or state tax rates, between the effective date
of this order and the effective date of the changes.
e. If applicable, the amount collected/refunded by the gas utility that reflects the difference
between: 1) each Interim Rate Adjustment surcharge approved by the Commission or the
regulatory authority since the gas utility's most recent statement of intent rate proceeding,
and 2) each Interim Rate Adjustment surcharge that would have resulted had the rates been
based upon the new federal or state tax rates, between the effective date of this order and
the effective date of the changes.
f. The amount collected/refunded by the gas utility that reflects the difference in the excess or
deficient deferred tax reserve included in base rates between: 1) the cost of service
approved by the Commission or the regulatory authority in the gas utility's most recent
statement of intent rate proceeding, and 2) the cost of service that would have resulted had
the rates been based upon the new federal or state tax rates, between the effective date of
this order and the effective date of the changes. These amounts shall be refunded or
collected from customers based upon IRC rules and regulations if applicable.
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: I TAX —TAX ADJUSTMENT
APPLICABLE TO: 1 Entire Division as Set Forth Below
EFFECTIVE DATE: I Bills Rendered on or after 10/01/2025
PAGE: J
2. With regard to the Tax Act 2022 and certain other tax -related costs that will change from the
amounts included in the base revenue requirement established through an RRM filing, any
change in rates shall be calculated as follows:
(a) The amount shall be calculated as the product of Company's grossed -up rate of return
authorized in the cost of service as approved by the Commission or the applicable regulatory
authority in the gas utility's most recent statement of intent or other rate proceeding times the
Corporate Alternative Minimum Tax deferred tax asset ("CAMT DTA") estimated at
September 30 of the fiscal year or applicable quarter -end within a fiscal year prior to the
annual change in the rates pursuant to this tariff, less the income tax credits received in
accordance with IRC requirements applicable to the Tax Act 2022 grossed -up for income
taxes to a revenue equivalent.
(b) The estimated CAMT DTA and the related effects on the rider revenue requirements shall be
trued up to the actual effects in the following year and the over/under recovery amortized
over the twelve months that each year's recalculated tariff rates are in effect. The over/under
recovery shall include a grossed -up rate of return as authorized in Company's most recent
statement of intent or other rate proceeding.
(c) The methodology for computing Company's CAMT is as follows:
Confirm when Atmos Energy Corporation and its affiliates are subject to CAMT
as an "applicable corporation" as defined the Tax Act 2022, then there will be
MTX's CAMT DTA in the tariff.
Calculate the Mid -Tex Division's (MTX) contribution to Adjusted Financial
Statement Income ("AFSI") on a stand-alone basis. MTX's AFSI is calculated by
adjusting MTX's applicable financial statement income by adjustments to
depreciation, pension costs and federal income tax to arrive at AFSI. AFSI is
intended to be computed consistent with applicable IRC requirements.
iii. Compare MTX's CAMT stand-alone amount with MTX's regular stand-alone tax
liability. If the stand alone CAMT is in excess of the stand-alone regular tax, the
CAMT DTA is recorded to MTX.
If the Internal Revenue Service issues new guidance related to the Tax Act 2022, Company shall have
the right to make additional filings to recognize such adjustments.
Any Commission filing made to give effect to Federal or State Tax Law or Rate Changes shall be filed
within 12-months following the enactment of a tax rate change with the Commission's Oversight and
Safety Division or as part of a Statement of Intent.
Any city filing made to give effect to Federal or State Tax Law or Rate Changes shall be filed within 12-
months following the enactment of a tax rate change and addressed to the city official at the address of
record with the Mid -Tex Division.
With the exception of the authorization required from the Commission to allow the gas utility to recognize
the new federal income tax rate (increase or decrease) or state taxes (increase or decrease) or the
impacts associated with the effects of the Tax Act 2022 and certain other tax -related costs that will
change from the amounts included in the base revenue requirement in the last approved RRM Tariff filing,
no action on the part of the regulatory authority is required to give effect to the amount to be refunded or
MID-TEX DIVISION
ATMOS ENERGY CORPORATION
RIDER: I TAX —TAX ADJUSTMENT
APPLICABLE TO: Entire Division as Set Forth Below
EFFECTIVE DATE: Bills Rendered on or after 10/01/2025 PAGE:
collected from customers. However, any amount refunded or collected from customers shall be fully
subject to review for reasonableness and accuracy in the gas utility's next statement of intent proceeding,
and if applicable, the gas utility shall be required to reconcile any discrepancies.
Regulatory 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). Rate
changes subject to the provisions of this tariff may be implemented upon the filing of an appeal to the
relevant authority.
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 10/01/2026 1
Provisions for Adiustment
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:
WNAi = WNAF; x q;i
Where qii is the relevant sales quantity for the jth customer in ith rate schedule.
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 10/01/2025
Base Use/Heat Use Factors
Residential Commercial
Base use Heat use Base use
Heat use
Weather Station
Ccf Ccf/HDD Ccf
Ccf/HDD
Abilene
9.61 0.1476 91.65
0.7406
Austin
8.19 0.1394 183.99
1.1581
Dallas
12.74 0.2017 193.53
1.1001
Waco
9.23 0.1277 148.26
0.7631
Wichita
10.43 0.1387 12294
0.7038
Falls
Weather Normalization Adiustment (WNA) Rer,)ort
On or before June 1 of each year, the company posts on its website at
www.atmosenergy.com/MTXtariffs, 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.
ATTACHMENT 2
Resolution No. 2025-36, Page 6
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