Enclosed as part of the filing are the following documents (provided as printed copies and/or on CD or Flash Drive):

Transcription

1 energy April3, 218 Chris Felan Vice President Rates and Regulatory Affairs Geoffrey Gay Lloyd Gosselink Rochelle & Townsend, P.C. 816 Congress A venue Suite 19 Austin, Texas 7871 Re: Atmos Energy Corporations 218 Rate Review Mechanism Filing Dear Mr. Gay, Enclosed for filing is Atmos Energy Corporation, Mid-Tex Divisions (Atmos Energy or the Company) first filing under the new Rider RRM - Rate Review Mechanism Tariff. Per our agreement, service is being provided to you in lieu of service to the individual ACSC member cities. We are providing two printed copies, along with two compact discs for the ACSC group. If ACSC or any of your member cities, desire additional printed copies, please let me know. We have attached an Executive Summary to the cover letter, which highlights the details of the 218 RRMFiling. This RRM filing demonstrates the need for an increase in annual revenue of 29.9 million. This represents a monthly increase of 1.8 for the average residential customer. The proposed effective date for the new rates is October 1, 218. Enclosed as part of the filing are the following documents (provided as printed copies and/or on CD or Flash Drive): Table of Contents; Attachment 1 - Attestation of Filing; Attachment 2 - Tariffs; Attachment 3 -Narrative of Changes; Notice; RRM- Cost of Service TOTAL- Schedules and Workpapers; Total to Adjusted Reconciliation; RRM - Billing Determinants Study; and, Minimum Filing Requirements (MFRs) We have included updated tariffs for Rates R, C, I and T and Rider WNA. In addition, per the RRM Agreement, we have included MFRs as part of this filing. The MFRs consist of information that is typically requested by the interveners during the discovery process. We stand Atmos Energy Corporation 542 LBJ freeway, Suite 1862 Dallas, TX 7524 P 214~ F Christopher.Felan@atmosenergy.com

2 ready to respond to additional requests for information during the review process and hope that we will be able to continue the cooperative nature established in the previous RRM filings. We look forward to the technical conference with ACSCs consultants to discuss and review the filing as we desire to continue to work on a collaborative basis. The goal is to reach a mutual agreement that fairly balances the needs ofthe Company and the needs of the customer. I want to say again how much Atmos Energy appreciates ACSCs willingness to work with the Company. We look forward to continuing this cooperative spirit in the review of this filing. Sincerely, Chris Felan Attachment: Executive Summary Enclosures: RRM Filing Package (2 copies) Compact Disc (2 copies) Flash Drive (2 copies) cc: Karl Nalepa, ReSolved Energy Connie Cannady, NewGen Strategies Atmos Energy Corporation 542 LBJ Freeway, Suite 1862 Dallas, TX 7524 P F Christopher.Fclan@atmosenergy.com

3 Atmos Energy Corporation - Mid-Tex Division Executive Summary 218 RRM Filing April 3, 218 Atmos Energy Corporation, Mid-Tex Division (the Company ) reached an agreement with cities in March 218 to establish a new Rate Review Mechanism (RRM). The RRM is a systematic process collaboratively developed by the Company and the City Coalitions ( Cities ), specifying how rates will be set over a specified period of time. Benefits of the RRM o Suspends GRIP filings o Avoids cost of litigation that would be borne by customers o Provides transparent process for annual review of all Company expenses and investment o Provides guidance on ratemaking principles, cost exclusions for rate recovery and rate design limitations. The Company submitted its first filing under the new RRM to each of its Cities or their representative on April 3, 218. o This RRM filing represents a requested increase in annual revenue of approximately 29.9 million for the months ending December 31, 217. The filing package supports an increase in rates of: o Average Residential customer using 45. Ccf a month will have an increase of 1.8/month, 3.31% overall. o Average Commercial customer using Ccf a month will have an increase of 5.39/month, 2.4% overall. o Average Industrial/Transportation customer using 3,97 MMBtu a month will have an increase of , 2.71% overall for Industrial and 3.55% for Transportation customers overall. The Company has calculated the change in rates based on the terms set forth in its Rider RRM tariff.

4 We plan to continue our investment in infrastructure towards our goal of being the safest provider of natural gas services. Atmos Energy has invested in the Mid-Tex system to make a safe system safer. o The filing package supports over 43 million of total capital investment made in the Mid-Tex system with over 8% (322 million) spent on improving system safety and reliability. Attachment MFR 1-7, included within the filing is a listing of all projects completed within the test year. Increased capital investments have allowed Atmos to replace a significant portion of our infrastructure for the current filing as well as filings dating back to 211. From 211 through 216 o 915 miles of distribution pipe replaced 554 miles of steel 25 miles of cast iron 111 miles of vintage plastic Within this 218 filing for Calendar Year 217 o 238 miles of distribution pipe replaced 4 miles of steel 79 miles of cast iron 35 miles of vintage plastic o Over 156, steel service lines replaced o Over 15, steel service lines replaced What is next? o Collaborative effort between the Company and the Cities consultants in reviewing the filing. o Company and City Representatives/Consultants will review and agree on final rates to be implemented on October 1, 218.

5 Atmos Energy Corp., Mid-Tex Division Rate Review Mechanism Filing Table of Contents Cover Letter Attachment 1: Attestation of Filing - Christopher A. Felan Attachment 2: Tariffs Attachment 3: Rate R - Residential Sales Rate C - Commercial Sales Rate I - Industrial Sales Rate T- Transportation Rider WNA- Weather Normalization Adjustment Narrative of Changes Notice Atmos Energy Corp., Mid-Tex Division, Rate Review Mechanism RRM Cost of Service TYE Dec TOTAL Total to Adjusted Reconciliation Atmos Energy Corp., Mid-Tex Division, Billing Determinants Study

6 Atmos Energy Corp., Mid-Tex Division Rate Review Mechanism Filing Table of Contents Index of Files on CD/Flash Drive: Cover Letter, Table of Contents and Attachments 1, 2 and 3, Notice Atrnos Energy Corp., Mid-Tex Division, Rate Review Mechanism- RRM Cost of Service TYE Dec TOTAL Total to Adjusted Reconciliation Atmos Energy Corp., Mid-Tex Division, Billing Determinants Study Atmos Energy Corp., Mid-Tex Division Minimum Filing Requirements Relied Upons o Atmos Energy Corp., Mid-Tex Division, Rate Review Mechanism- RRM Adjusted Cost of Service TYE Dec31_ 217

7 ATMOS ENERGY CORP., MID-TEX DIVISION RATE REVIEW MECHANISM BEFORE THE RESPECTIVE GOVERNING BODY OF THE ATMOS ENERGY CORP., MID-TEX DIVISION CITIES AND TOWNS ATTESTATION OF CHRISTOPHER A. FELAN Before me, the undersigned authority, on this date personally appeared Christopher A. Felan,!mown to me to be the person whose name is subscribed below, and being by me first duly sworn, stated upon oath as follows: I. My name is Christopher A. Felan. I am the Vice-President of Rates and Regulatory Affairs of Atmos Energy Corporations Mid-Tex Division and as such am an Officer of the Company. I have over 18 years of business experience and 1 plus years of experience in the natural gas utility industry. I am fully competent to make this attestation, and each statement of fact herein is true of my own personal knowledge. 2. I affirm that the schedules filed by the Company in this rate review mechanism filing are in compliance with the provisions of the rate review mechanism tariff and are true and correct to the best of my own personallmowledge. SWORN AND SUBSCRIBED before me this e 2?f~ day of March, 218. e Sandy D Gorda My Commission. &91res August 27, 22 Notary IDtlt

8 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: R- RESIDENTIAL SALES ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 1/1/218 I 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 Customers monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Customer Charge per Bill Rider CEE Surcharge Total Customer Charge Commodity Charge - All Ccf Amount per month.2 per month per month 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 Companys Tariff for Gas Service. 1 Reference Rider CEE ~ Conservation and Energy Efficiency as approved in GUD 117. Surcharge billing effective July 1, 217.

9 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: C- COMMERCIAL SALES ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 1/1/218 I 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 3, 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 Customers monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Customer Charge per Bill Rider GEE Surcharge Total Customer Charge Commodity Charge - All Ccf Amount 44.5 per month (.4) per month per month.947 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 Companys Tariff for Gas Service. 1 Reference Rider CEE- Conservation and Energy Efficiency as approved in GUD 117. Surcharge billing effective July 1, 217.

10 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: I- INDUSTRIAL SALES ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 1/1/218 I PAGE: Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,5 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 3,5 MMBtu per day will be provided at Companys 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 Customers 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 First MMBtu to 1,5 MMBtu Next 3,5 MMBtu All MMBtu over 5, MMBtu 86. per month.349 per MMBtu.2495 per MMBtu.535 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 Customers deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 2% 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.

11 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: 1- INDUSTRIAL SALES ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 1/1/218 I 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 Companys 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.

12 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: T- TRANSPORTATION ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 1/1/218 I PAGE: Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Almas Energy Corp., Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customers agent at one Point of Delivery for use in Customers 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 Customers 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 First MMBtu to 1,5 MMBtu Next 3,5 MMBtu All MMBtu over 5, MMBtu 86. per month.349 per MMBtu.2495 per MMBtu.535 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).1 per MMBtu, or (ii) 15% 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 Customers monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 1% of Customers receipt quantities for the month.

13 MID-TEX DIVISION ATMOS ENERGY CORPORATION RRC Tariff No: RATE SCHEDULE: APPLICABLE TO: T- TRANSPORTATION ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after I PAGE: Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customers deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 2% 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 Companys 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.

14 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: APPLICABLE TO: WNA- WEATHER NORMALIZATION ADJUSTMENT ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 11/1/218 I PAGE: Provisions for Adjustment The Commodity Charge per Ccf (1 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 = (HSFi X (NOD-ADD)) (Bli + (HSFi x ADD) ) Where = WNAFi = Ri = HSFi = NOD = ADD = Bli = 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: WNA 1 = WNAF, x qii Where q 1 ; is the relevant sales quantity for the jth customer in ith rate schedule.

15 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: APPLICABLE TO: WNA- WEATHER NORMALIZATION ADJUSTMENT ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 11/1/218 I 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 Austin Dallas Waco Wichita Falls Weather Normalization Adjustment (WNAl 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.

16 NARRATIVE OF CHANGES The Companys first Rate Review Mechanism (RRM) filing under the tariff negotiated in March 218 is for the period ending December 31, 217. The filing package reflects a system-wide cost of service increase in the amount of41,868,581. Of this amount, 29,881,936 is applicable to the Affected Cities. The differences between the fifth RRM filing under the prior tariff and this filing other than the changes required by the new tariff are highlighted below: Tax Cuts and Jobs Acts (TCJA) became effective January 1, 218. The following changes are incorporated into the filing as a result of the TCJ A: o The statutory federal income tax rate changed from 3 5% to 21%. o A Regulatory Liability was established and added to Schedule B to account for the revaluation of Accumulated Deferred Income Taxes (ADIT). o The Regulatory Liability balance has been reduced to account for the first years amortization and the amortization reduces the total Cost of Service on Schedule A. o On WP B-6, 31 a new item Regulatory Liability Gross Up has been added to ADIT and the balance reduced to accotmt for the first years amortization. o WP _B-6.1 and B-6.2 have been added to the filing to detail the amortization of the Regulatory Liability. Amortization related to the Pension and Other Post Employment Regulatory Asset has been updated to include increments for approval since the last filing. The Company proposes to continue amortization of the existing asset until it is fully amortized with future deferrals related to expense only. These are summarized on WP_B-7.1. WP_F details the expense benchmark that was approved in the 217 Mid-Tex RRM settlement. The Company proposes that the amount allocated to expense be approved and used to calculate the regulatory asset or liability for future periods. The future capital amounts would be recorded directly to utility plant and not deferred. Shared Services Division (SSU) allocation rates have been updated to January 218 factors as per the tariff. The SSU Service Level Factors Adjustment is detailed in the Cost of Service filing on WP _F-2.7. WP _F in the filing details the function of each cost center. Primary changes to SSU Cost Centers since the fifth RRM filing are summarized below: Cost Centers 13 and 14 have been discontinued since the 217 Mid-Tex RRM filing. Since the 217 Mid-Tex RRM filing, Cost Centers 1, 21 and 1417 have been created. Please see WP_F for a description of these Cost Centers.

17 CUSTOMER NOTICE INCORPORATED AREAS OF THE MID-TEX DIVISION On April 3, 218 Atmos Energy Corporation, Mid-Tex Division (Atmos Energy or the Company), filed a Rate Review Mechanism (RRM) filing to increase its gas rates and implement a new schedule of rates and riders. This filing is applicable to all customers under the RRM tariff, including the customers within your city served by the Mid-Tex division. The proposed effective date of the requested rate changes is October 1, 218. If approved, the proposed changes will affect approximately 1,78,6 residential, 87,98 commercial, and 577 industrial and transportation customers. If approved, the proposed rates will increase the Companys annual revenues for the affected incorporated areas of its Mid-Tex Division by 29,881,936 or 2.88% percent, including gas costs, or 6.73% percent, excluding gas cost. The proposed change in rates constitutes a major change as that term is defined by Section of the Texas Utilities Code. Based on the proposed rate design, the average monthly bill for each customer class within the affected incorporated areas of the Mid-Tex Division will increase by the amount and percentage shown in the table below: Proposed Current Customer Class Bill** Difference Bill Residential 54.53* 56.33* 1.8 Commercial 264.1* * 5.39 Industrial 5,153.96* 5, * Percentage Increase with Gas Cost 3.31% 6.91% 2.4% 7.% 2.71% 7.34% Percentage Increase without Gas Cost Transportation 3, , % 7.34% Note: Bill impact ranges are subject to varying tax rates among the cities. * Includes Rider GCR Part A cost of per Ccf. **The calculation of bill impacts assumes monthly consumption of 45. Ccf for residential, Ccf for commercial and 3,97 MMBtn for industrial and transportation customers. In addition to the rate revisions in Rate Schedules R, C, I, and T, the other proposed tariff change is an update to the factors included in Rider WNA. Persons with specific questions or desiring additional information about this filing may contact Atmos Energy Corporation at Complete copies of the filed Rate Review Mechanism, including all proposed rates and schedule changes, are available for inspection at Atmos Energys offices located at 542 LBJ Freeway, Suite 16, Dallas, Texas 7524 or on our Web site at Este es un aviso a los clientes de la División Mid-Tex de Atmos Energy Corporation (la Compañía) que el 3 de abril del 218, la Compañía solicitó un aumento en las tarifas del gas. Este aumento, que comienza el 1 de octubre del 218, afecta a todos los clientes bajo la tarifa RRM, incluyendo los clientes dentro de su ciudad servidos por la División Mid-Tex. Si usted tiene preguntas con respecto a este aumento, por favor llame a Atmos Energy Corporation al

18 File Date: March 3, 218 RATE REVIEW MECHANISM TEST YEAR ENDING DECEMBER 31, 217 Totals may vary due to rounding.

19 File Date: March 3, 218 TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31, 217 LINE NO. DESCRIPTION SCHEDULE REVENUE REQUIREMENTS BY SERVICE CLASS 2 REVENUE REQUIREMENTS 3 RATE BASE 4 COMPONENTS OF RATE BASE- GROSS PLANT 5 COMPONENTS OF RATE BASE- ACCUMULATED DEPRECIATION 6 CASH WORKING CAPITAL 7 OPERATION AND MAINTENANCE EXPENSES 8 ADJUSTMENTS TO OPERATION AND MAINTENANCE EXPENSES 9 DEPRECIATION AND AMORTIZATION EXPENSE 1 DEPRECIATION RATE SUMMARY 11 TAXES OTHER THAN INCOME TAX -ACCOUNT 48.1 FEDERAL INCOME TAX AND STATE FRANCHISE (GROSS MARGIN) TAX 13 INTEREST EXPENSE- CUSTOMER DEPOSITS 14 SUMMARY OF RETURN 15 CALCULATION OF RIDER GCR PART A 16 CALCULATION OF RIDER GCR PART B 17 SUMMARY OF CURRENT AND PROPOSED RATE STRUCTURE- BASE RATES Schedule A Page 1 Schedule A Page 2 Schedule B Schedule C Schedule Schedule E Schedule F-1 Schedule F-2 Schedule F-3 Schedule F-4 Schedule F-5 Schedule F-6 Schedule F-7 Schedule G Schedule H Schedule 1 Schedule J Table of Contents Page 1 of3

20 File Date: March 3, 218 TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31, 217 LINE NO. DESCRIPTION WORKPAPER RATE BASE ADJUSTMENTS 2 GUD 967 RATE BASE ADJUSTMENTS AMORTIZATION SCHEDULE 3 GUD 9762 RATE BASE ADJUSTMENTS- AMORTIZATION SCHEDULE 4 GUD 9869 RATE BASE ADJUSTMENTS- AMORTIZATION SCHEDULE 5 GUD 117 RATE BASE ADJUSTMENTS- AMORTIZATION SCHEDULE 6 INJURIES AND DAMAGES AND WORKERS COMP RESERVES (1) 7 MATERIALS & SUPPLIES-ACCOUNTS 154 & PREPAYMENTS-ACCOUNT CUSTOMER DEPOSITS AND CUSTOMER ADVANCES FOR CONSTRUCTION 1 ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS 19/282/283 (1) 11 AMORTIZATION OF REGULATORY LIABILITY MIDPOINT OF REGULATORY LIABILITY 13 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET 14 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET SUMMARY 15 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS 19/282/283 (1) 16 BASE LABOR ADJUSTMENT 17 MEDICAL AND DENTAL BENEFITS ADJUSTMENT 18 PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT 19 PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL 2 PROPERTY INSURANCE ADJUSTMENT 21 INJURIES AND DAMAGES ADJUSTMENT 22 EMPLOYEE EXPENSE ADJUSTMENT 23 SHARED SERVICES (SSU) SERVICE-LEVEL FACTORS ADJUSTMENT 24 SHARED SERVICES (SSU) COST CENTER FUNCTIONS 25 MISCELLANEOUS ADJUSTMENTS WP B-1 WP B-1.1 WP B-1.2 WP B-1.3 WP B-1.4 WP B-2 WP B-3 WP B-4 WP B-5 WP B-6 WP B-6.1 WP B-6.2 WP B-7 WP B-7.1 WP E-1 WP F-2.1 WP F-2.2 WP F-2.3 WP F WP F-2.4 WP F-2.5 WP F-2.6 WP F-2.7 WP F WP F-2.8 Table of Contents Page 2 of 3

21 File Date: March 3, 218 TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31,217 LINE NO. DESCRIPTION WORKPAPER 26 UNCOLLECTIBLE EXPENSE ADJUSTMENT WP F RULE COMPLIANCE ADJUSTMENT WP F CUSTOMER CONSERVATION PROGRAM ADJUSTMENT WP F TAXES OTHER THAN INCOME TAX WORKPAPER WP F SHARED SERVICES (SSU) ADJUSTED TOTAL LABOR ALLOCATED TO MID-TEX FOR PAYROLL TAX CALCULATION WP F SUMMARY PROOF OF REVENUE AT CURRENT RATES- BASE RATES WP J-1 32 CALCULATION OF CURRENT REVENUES BY AREA- RATER- BASE RATES WP J CALCULATION OF CURRENT REVENUES BY AREA- RATE C- BASE RATES WP J CALCULATION OF CURRENT REVENUES BY AREA- RATE I&T- BASE RATES WP J OTHER REVENUES WP J-2 36 NON-STANDARD CONTRACT MARGINS WP J TYPICAL BILL COMPARISON- BASE RATES WP J-3 38 AVERAGE BILL COMPARISON- BASE RATES WP J SUMMARY PROOF OF REVENUE AT PROPOSED RATES- BASE RATES WP J-4 4 CALCULATION OF PROPOSED REVENUES BY AREA- RATER- BASE RATES WP J CALCULATION OF PROPOSED REVENUES BY AREA- RATE C- BASE RATES WP J CALCULATION OF PROPOSED REVENUES BY AREA- RATE I&T- BASE RATES WP J PROPOSED TARIFF STRUCTURE (BEFORE RATE CASE EXPENSE RECOVERY) WP J-5 44 PROPOSED TARIFF STRUCTURE- RATE CASE EXPENSE RECOVERY WP J 5.1 Table of Contents Page 3 of 3

22 File Date: March 3, 218 REVENUE REQUIREMENTS BY SERVICE CLASS TEST YEAR ENDING DECEMBER 31, 217 No. Current Proposed Description Revenues Revenues 1 (a) (b) (c) Proposed Change (d) Percent Change (e) Residential (Base Revenue) 447,851, ,552,721 Residential (Rider GCR) 481,594, ,594,491 Residential (Rider FF & Rider TAX) 61,38,882 63,48,415 Total Residential Revenue 99,826,642 1,23,555,627 Commercial (Base Revenue) 18,75,97 116,348,441 Commercial (Rider GCR) 272,355,94 272,355,94 Commercial (Rider FF & Rider TAX) 25,165,445 25,67,156 Total Commercial Revenue 46,227, ,374,537 lndustrialffransportation (Base Revenue) 14,243,218 15,285,364 lndustrialffransportation (Rider GCR) 26,87,7 26,87,7 lndustrialffransportation (Rider FF & Rider TAX) 2,71,977 2,779,81 Total Industrial/Transportation Revenue 43,761, Other Revenue (Base Revenue) 14,543,619 14,543,619 Other Revenue (Rider GCR) other Revenue (Rider FF & Rider TAX) 96,465 96,465 Total Other Revenue 15,54,84 15,54,84 Base Revenue 585,344,76 624,73,145 RiderGCR 78,757,558 78,757,558 Rider FF & Rider TAX Total Operating Revenues 3,71,452 2,27,533 32,728,985 7,642,471 54,711 8,147,182 1,42,146 68,824 1,11,97 39,386, %.% 3.3% 3.3% 7.3%.% 2.1% 2.1% 7.32%.% 2.54% 2.54%.%.%.%.% 6.73%.% Note: 1 Proposed Revenues are the result of the application of the proposed rates to billing determinants. Schedule A Page 1 of 2

23 File Date: March 3, 218 REVENUE REQUIREMENTS TEST YEAR ENDING DECEMBER 31, 217 No. Description (a) Reference Base Revenue (b) (c) (d) Rider FF & Rider Rider GCR TAX (e) ( Total (g) Rider GCR Part A Rider GCR Part 8 Total Rider GCR Operation and Maintenance Expenses Taxes Other than Income Taxes Depreciation and Amortization Expense Interest on Customer Deposits Rate Base Rate of Return Income Taxes Revenue Requirements Current Revenues Proposed Cost of Service Systemwide Amortization of Excess Accumulated Deferred Income Taxes Proposed Cost of Service - Systemwide Adjusted for Excess ADIT Proposed Cost of Service- Affected Cities Rate Case Expense Recovery Schedule H Schedule I Schedule F-1 196,233,324 Schedule F-5 43,726,64 Schedule F-3 144,321,772 Schedule F-7 117,764 Schedule 8 2,587,261,18 Schedule G 7.97% 26,251,862 Schedule F-6 45,295,638 Schedule A (Ln 2 Ln 22) WP _B-6.1 (Ln 24 - Ln 26) WP _J-5.1 Total Proposed Cost of Service including Rate Case Expenses 635,946, ,525, ,231,63 78,757,558 93,559,563 78,757,558 93,559,563 _ 391,525, ,231,63 78,757, ,233, ,285, ,321, ,764 26,251,862 45,295,638 1,51,263,546 1,456,319,43 53,944,143,75,562 41,868,581 29,82,696 79,24 29,881,936 Schedule A Page 2 of2

24 File Date: March 3, 218 RATE BASE AS OF DECEMBER 31,217 No. Amount per Description Reference Books (a) (b) (c) Adjustment Total Requested (d) (e)-( c)+( d) Net Plant (1): Gross Plant Schedule C 4,584,41,299 Accumulated Depreciation ScheduleD 1,41,678,144 Total Net Plant (Ln 2 minus Ln 3) 3, 182,363,155 Additions: Materials & Supplies WP_B-3 1,34,94 Prepayments WP_B-4 14,17,31 Pension and Other Postemployment Benefits Regulatory Asset WP.:_B ,28 Total Additions (Sum Ln?through Ln 9) 16,166,433 Deductions: Customer Deposits WP_B-5,941,13 Injuries and Damages Reserve WP_B-2 4,823,844 Accumulated Deferred Income Taxes WP_B-6 444,867,186 Regulatory Liability (Account 253, Sub-Account 2799) (2) WP _B-6.1/ ,813,479 Rate Base Adjustments WP_B-1 Total Deductions (Sum of Ln 13 through Ln 17) 752,445,613 Total Cash Working Capital Schedule E Total Rate Base (Ln 4 plus Ln 1 minus Ln 18 plus Ln 2) 2,446,83,975 Notes: 1. Rate base excludes Poly 1 previously disallowed and includes other known and measurable rate base adjustments. (52,,171) 4,532,29,9 (78,654,847) 1,323,23,298 26,642,676 3,29,5,831 19,43 1,53,524 3,671,526 17,841,836 () 962,28 3,69,956 19,857,388,941,13 (2,821,339) 2,2,55 (135, 193,614) 39,673,572 {6,37,781) 283,775,699 7,9,77 7,9,77 (136,922,964) 615,522,65 (26,79,551) (26,79,551) 141,177,45 2,587,261,18 2. The Regulatory Liability represents the excess deferred income taxes resulting from the revaluation of ADIT due to the Tax Cuts and Jobs Act. Schedule B Page 1 of 1

25 File Date: March 3, 218 No. Description (a) RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 Amounts (b) 1 GUO 967 Amortization of Disallowed Projects, OH, etc. (WP_B-1.1) 2 GUO 9762 Amortization of Employee Expenses (WP_B-1.2) 3 GUD 9869 Amortization of Employee Expenses (WP_B-1.3) 4 GUO 117 Amortization of Employee Expenses (WP_B-1.4) (1) 5 Adjustment to Pension and Other Post Employment Benefits 6 to the benchmark level approved in the CY15 and CY16 RRMs (2) 7 Capitalized Severance Pay Adjustment, TYE December 31, 217 (3) 8 Capitalized SSU MIPNPP Incentive Compensation Adjustment, TYE December 31,217 (4) 9 Capitalized LTIP Incentive Compensation Adjustment, TYE December 31, 217 (4) 1 Employee-related Expenses not included in Expense Reports (5) 11 Employee Expense Adjustment, TYE December 31, 2 (1) Employee Expense Adjustment, TYE December 31, Employee Expense Adjustment, TYE December 31, Employee Expense Adjustment, TYE December 31, Employee Expense Adjustment, TYE December 31, Employee Expense Adjustment, TYE December 31,217 (6) 17 6,51, ,898 22,565 97,337 8,953 22,1,976 11,377 15,69 23, Total (Sum of Ln 1 through Ln 16) 7,9, Notes: The adjustment on 4 includes amounts for Shared Services Divisions 2 and and Mid-Tex through March 31, 2. The 23 adjustment on 11 includes amounts for Shared Services Divisions 2 and and Mid-Tex for the period April 1 24 through December 31, To align O&M and Capital, see WP _F Severance Pay voluntarily removed by the Company to reduce controversy in this filing for Mid-Tex direct and allocated 27 SSU General Office and Customer Support Remove Capitalized SSU Incentive Compensation in conformance with RRM Tariff, Section Ill- Calculation, RI definition Other Employee-related Expenses adjusted beginning January 1, 217 through December 31, 217 for 54 for 54 and 9 Series Review. 3 The adjustment includes Mid-Tex direct and allocated SSU General Office and Customer Support amounts See Page 2, Col (e), Ln 15. WP _B-1 Page 1 of 2

26 File Date: March 3, 218 EMPLOYEE EXPENSE ADJUSTMENT TO CAPITAL TEST YEAR ENDING DECEMBER 31, 217 No. Shared Services - Shared Services Customer Support General Office Description () (2) (a) (b) (c) Mid-Tex Direct (d) Total Adjustment (e) Twelve Months Ended December : Employee Expense Adjustment (1) Mid-Tex Allocation Factor (2) (3) 52.13% 38.21% Allocated Employee Expense Totals (Ln 2 times Ln 3) Capitalization Factor (2) 13.97% 3.72% Subtotal (Ln5 times Ln 6) Add Charges Direct to Capital: Employee Expense Adjustment (1) Mid-Tex Allocation Factor (2) (3) 52.13% 38.21% Allocated Employee Expense Charged Direct to Capital (Ln 1 times Ln 11) - Total Test Year Ending December 31, 217 Employee Expense Report Charges (Ln 7 plus Ln 13) Notes: 1. Shared Services - General Office amounts have been adjusted to remove amounts in cost centers which do not allocate to Mid-Tex. 2. See WP _F-2.1, Col (b) and Col (c) Lns 7 and 11, for the Shared Services factors, as adjusted. 3. Mid-Tex costs are directly charged and not allocated. 1.%.% 1.% WP _B-1 Page2 of2

27 File Date: March 3, 218 ATMOS ENERGY CORP., MID TEX DIVISION RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 GUO 967 RATE BASE ADJUSTMENTS AMORTIZATION SCHEDULE No Beginning of Year End of Year Rate Base Rate Base Balance as of Year Ended Adjustment Annual Adjustment December 31, Dec.31 Amount Amortization (1) Amount (2) 217 (a) (b) (c) (d) (e) 25 1,64,2 26 1,64,2 344,895 1,295, ,295,17 344,895 9,95,2 28 9,95,2 344,895 9,65, ,65, ,895 9,26, ,26, ,895 8,915, ,915, ,895 8,57, ,57, ,895 8,225, ,225, ,895 7,88, ,88, ,895 7,535, ,535, ,895 7,191, ,191,55 344,895 6,846, ,846,16 344,895 6,51,265 6,51, ,51, ,895 6,156, ,156, ,895 5,811, ,811, ,895 5,466, ,466, ,895 5,1, ,1, ,895 4,776, ,776, ,895 4,431, ,431, ,895 4,87, ,87,2 344,895 3,742, ,742,18 344,895 3,397, ,397, ,895 3,52, ,52, ,895 2,77, ,77, ,895 2,362, ,362, ,895 2,17, ,17, ,895 1,672, ,672, ,895 1,327, ,327, , , ,95 344, , ,55 344, , , ,161 Notes: 1. The annual amortization is calculated based upon the period specified in GUO 967 Final Order, Schedule B, Page 2, Footnote The December 31, 25 amount is per GUO 967 Final Order, Schedule B, Page 2, Ln 14. WP_B-1.1 Page 1 of 1

28 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31,217 GUO 9762 RATE BASE ADJUSTMENTS- AMORTIZATION SCHEDULE No Beginning of Year End of Year Rate Base Rate Base Balance as of Year Ended Adjustment Annual Adjustment December 31, June 3 Amount Amortization (1) Amount (2) 217 (a) (b) (c) (d) (e) , ,949 8,5 238, ,944 8,5 23, ,939 8,5 222, ,935 8,5 214, ,93 8,5 26, ,925 8,5 198, ,92 8,5 19, ,915 8,5 182, ,91 8,5 174, ,96 8,5 166,91 162, ,91 8,5 158, ,896 8,5 15, ,891 8,5 142, ,886 8,5 134, ,881 8,5 6, ,877 8,5 118, ,872 8,5 11, ,867 8,5, ,862 8,5 94, ,857 8,5 86, ,852 8,5 78, ,848 8,5 7, ,843 8,5 62, ,838 8,5 54, ,833 8,5 46, ,828 8,5 38, ,824 8,5 3, ,819 8,5 22, ,814 8,5 14, ,89 8,5 6, ,84 6,84 Notes: 1. The annual amortization is calculated based upon the period specified in GUO 967 Final Order, Schedule B, Page 2, Footnote The June 3, 27 amount is per GUO 9762 Final Order, WP _B-1, Page 1, Ln 2 + Ln 3. WP_B-1.2 Page 1 of 1

29 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 GUO 9869 RATE BASE ADJUSTMENTS- AMORTIZATION SCHEDULE No Beginning of Year Rate Base Adjustment End of Year Year Amount Rate Base Ended Employee Annual Adjustment Balance as of Dec. 31 Expense (1) Amortization {2} Amount December 31, 217 (a) (b) (c) (d) (e) , ,1 9, , ,73 9, , ,46 9, , ,189 9, , ,918 9, , ,647 9,271 23, ,377 9, , ,16 9, , ,835 9,271 22,565 22, ,565 9, , ,294 9, , ,23 9, , ,753 9, , ,482 9, , ,211 9, , ,941 9, , ,67 9,271 8, ,399 9, , ,8 9,271 19, ,858 9,271 1, ,587 9,271 91, ,316 9,271 82, ,46 9,271 72, ,775 9,271 63, ,54 9,271 54, ,234. 9,271 44, ,963 9,271 35, ,692 9,271 26, ,421 9,271 17, ,151 9,271 7, ,88 7,88 Notes: 1. The 28 amount in Col. {b) is from GUO 9869 WP _B-1, Col (e), Ln 29. The other disallowances from GUO 9869 have been removed on Schedule C. 2. The annual amortization is calculated based upon the period specified in GUO 967 Final Order, Schedule B, Page 2, Footnote 1. WP _B-1.3 Page 1 of 1

30 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 GUO 117 RATE BASE ADJUSTMENTS AMORTIZATION SCHEDULE No Beginning of Year Rate Base Adjustment End of Year Year Amount Rate Base Ended Employee Annual Adjustment Balance as of Mar. 31 Expense (1) Amortization (2) Amount December 31, 217 (a) (b) (c) (d) (e) 2 119, ,635 3, , ,757 3, , ,879 3,878 18, ,1 3,878 14, ,3 3,878 1, ,245 3,878 96,367 97, ,367 3,878 92, ,489 3,878 88, ,611 3,878 84, ,733 3,878 8, ,855 3,878 76, ,977 3,878 73, ,1 3,878 69, ,222 3,878 65, ,344 3,878 61, ,466 3,878 57, ,588 3,878 53, ,71 3,878 49, ,832 3,878 45, ,954 3,878 42, ,76 3,878 38, ,198 3,878 34, ,32 3,878 3, ,442 3,878 26, ,564 3,878 22, ,686 3,878 18, ,88 3,878 14, ,93 3,878 11, ,52 3,878 7, ,174 3,878 3, ,296 3,296 Notes: 1. The 2 amount in Co! (b) is from GUO 117 WP _8-1, Col {b), Lns 4 through The annual amortization ls calculated based upon the period specified in GUO 967 Final Order, Schedule B, Page 2, Footnote 1. WP_B-1.4 Page 1 of1

31 File Date: March 3, 218 ATMOS ENERGY CORP., MID TEX DIVISION INJURIES AND DAMAGES AND WORKERS COMP RESERVES (1) TEST YEAR ENDING DECEMBER 31, 217 No. Per Book Adjusted Month Ending Amount Adjustments Amount (a) (b) (c) (d)- (b)+(c) Allocation Factor (e) Allocated Amount (Q- (d)( e) Mid-Tex December31, 216 2,24,65 2,24,65 January31, 217 2,36,749 2,36,749 February 28, 217 2,59,79 2,59,79 March 31,217 2,82,631 2,82,631 April3, 217 2,9,451 2,9,451 May 31, 217 2,13,76 2,13,76 June 3, 217 2,,734 2,,734 July31, 217 2,11,617 2,11,617 August31,217 2,8,797 2,8,797 September 3, 217 2,13,531 2,13,531 October 31,217 2,2,967 2,2,967 November 3, 217 2,11,441 2,11,441 December 31,217 1,882,792 1,882,792 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 2,24,65 2,36,749 2,59,79 2,82,631 2,9,451 2,13,76 2,,734 2,11,617 2,8,797 2,13,531 2,2,967 2,11,441 1,882,792 WP_B-2 Page 1 of 2

32 File Date: March 3, 218 INJURIES AND DAMAGES AND WORKERS COMP RESERVES (1) TEST YEAR ENDING DECEMBER 31, 217 No Per Book Adjusted Month Ending Amount Adjustments Amount (a) (b) (c) (d)- (b)+(c) Shared Services- General Office {Div 2} {2} December31, 216 8,287,429 (7,988,17) 299,259 January31, 217 8,291,548 (7,988,17) 33,378 February 28, 217 8,297,459 (7,988,17) 39,288 March 31,217 6,296,88 (5,988, 17) 37,918 April 3D, 217 6,299,469 (5,988,17) 311,299 May31, 217 6,33,284 (5,988, 17) 315,114 June 3, 217 5,299,6 (4,988,17) 31,89 July 31, 217 5,29,566 (4,988,17) 32,396 August 31, 217 6,89,946 (5,788,17) 31,775 September 3, 217 7,698,771 (7,383,771) 315, October 31,217 7,75,166 (7,383,771) 321,395 November 3, 217 7,71,67 (7,383,771) 317,296 December31, 217 7,697,75 (7,383,771) 313,34 Shared Services- Customer Sug:uort {Div } December31, 216 January 31, 217 February 28,217 March 31,217 April 3D, 217 May31, 217 June 3, 217 July31,217 August31,217 September 3, 217 October 31,217 November 3, 217 December31, 217 Total at December 31,217 (Col (f)= Sum Ln 14 plus Ln 29 plus Ln 44) 4,823,844 Notes: 1. Account and Sub-accounts 28 and The adjustment in Column (c) removes reserves not allocated to the divisions, subaccount Please refer to Cost Center 193. Allocation Factor (e) 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 38.21% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% 52.13% Allocated Amount (f) (d)( e) 114, , , , ,947,45 118, , ,38,361 2,85 1, ,713 2,2,55 WP_B-2 Page 2 of 2

33 File Date: March 3, 218 MATERIALS & SUPPLIES-ACCOUNTS 154 & 163 TEST YEAR ENDING DECEMBER 31,217 No MonthNear Ending (a) December 31, 216 January 31, 217 February 28, 217 March 31,217 April 3, 217 May 31, 217 June 3, 217 July 31, 217 August 31, 217 September 3, 217 October31, 217 November 3, 217 December 31, Month Average Amount (b) 748,14 598,46 728, , , ,569 1,252,181 1,356,82 1,41,115 1,231 ;2 1,24,542 1,244,228 1,34,94 1,53,524 WP_B-3 Page 1 of 1

34 File Date: March 3, 218 PREPAYMENTS-ACCOUNT 165 TEST YEAR ENDING DECEMBER 31, 217 No. Month/Year Ending (a) Amount Adjustments (1) Adjusted Total (b) (c) (d)= (b)+(c) Allocation % (e) Allocation to Mid-Tex (f)- (d)x(e) Mid-Tex December 31, January 31,217 3 February 28, March 31,217 5 April3, May 31,217 7 June 3, July 31, August 31,217 1 September 3, October 31, 217 November 3, December 31, Month Average ,689 (8) 468,681 3,447,237 47,868 3,495,15 7,999,255 (223,46) 7,776,28 8,172,98 (5,825) 7,659,273 3,186,926 (721,325) 2,465,61,336,539 (672,836) 11,663,73 6,498,716 (35,392) 6,148,324 9,349,718 (472,573) 8,877,145 7,89,695 (49,33) 7,4,365 4,376,71 (218,147) 4,157,925 6,6,63 (271,795) 5,854,835 5,116,836 (232,615) 4,884, ,523 (1 ) 541,513 L 5,82,33 5,491, Shared Services-General Office {Div 2) 18 December31, ,944,542 33,944, January 31, ,452,354 32,452,354 2 February 28, ,243,166 28,243, March 31, ,839,499 31,839, April 3, ,643,34 29,643,34 23 May 31,217 31,33,18 31,33,18 24 June 3, ,599,696 27,599, July 31,217 26,84,727 26,84, August 31, ,32,452 24,32, September 3, ,258,537 22,258, October 31, ,153,472 33,153, November 3, ,859,434 34,859,434 3 December31, ,616,696 32,616, Month Average 29,98,72 29,98,72 1% 5,491, % 11,427,874 WP _B-4 Page 1 of 2

35 File Date: March 3, 218 PREPAYMENTS-ACCOUNT 165 TEST YEAR ENDING DECEMBER 31, 217 Allocation No. Month/Year Ending (a) Amount (b) Adjustments (1) (c) Adjusted Total (d)- (b)+(c) Allocation% (e) to Mid-Tex (f)= (d)x(e) Shared Services-Customer Su~~ort (Div ) 35 December31, 216 1,968,32 1,968,32 36 January 31,217 1,848,566 1,848, February 28, 217 2,174,65 2,174,65 38 March 31,217 1,879,184 1,879, April 3, 217 1,67,14 1,67,14 4 May 31, 217 1,839,555 1,839, June 3, 217 1,61,328 1,61, July 31,217 1,598,74 1,598,74 43 August 31, 217 1,399,528 1,399, September 3, 217 1,36,89 1,36,89 45 October 31, , , November 3, 217 2,583,227 2,583, December31, 217 2,236,616 2,236, Month Average 1,769,4 1,769, % 922, ota!!-repayments LJecember 31 14,17,31 52 Total Prepayments 13-Month Average 53 (Ln 15 plus Ln 32 plus Ln 49) 17,841, Note: The Mid-Tex adjustment is to remove franchise fee prepayments for those cities that are handled as payment in arrears for ratemaking 57 purposes. The adjustment amount is based on the factors calculated in the GUO 117 Prepayment Study. WP _8-4 Page 2 of2

36 File Date: March 3, 218 CUSTOMER DEPOSITS AND CUSTOMER ADVANCES FOR CONSTRUCTION TEST YEAR ENDING DECEMBER 31, 217 No. Month/Year Ending Amount (a) (b) 1 Customer De11osits -Ace! December 31, ,768,911 3 January 31,217 15,658,584 4 February 28, ,185,669 5 March 31,217 14,971,592 6 April 3, ,739,8 7 May31, ,55,992 8 June 3, ,18,176 9 July 31, ,774,957 1 August 31,217 13,484, September 3, ,213,13 October31, ,79, November 3, 217,976, December 31,217,941, Customer Advances - Ace! December31, January 31, February 28, March 31, April3, May 31, June 3, July 31, August 31, September 3, October 31, November 3, December 31, 217 WP_B-5 Page 1 of 1

37 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS 19/282/283 (1) TEST YEAR ENDING DECEMBER 31, 217 No. Assets I (Liabilities) -Per Descri~tion Book Balances Adjustments (a) (b) (c) Assets I (Liabilities) - Adjusted Balances (d)= (b)+(c) Mid-Tex: Ad Valorem Taxes 176,539 M!PNPP Accrual (1,933,98) Miscellaneous Accrued Self Insurance -Adjustment Vacation Accrual 8,192 Workers Camp Insurance Reserve 37,215 SEBP Adjustment 464,794 FAS 16 Adjustment 15,265,55 CWIP 343,62 (343,62) RWIP (1,933,69) Fixed Asset Cost Adjustment (63, 772,746) Depreciation Adjusbnent 46,57,26 Section 481(a) TPR (877,64) Deferred Gas Costs (15,654,772) 15,654,772 Over Recoveries of PGA (3,763,252) 3,763,252 TXU Goodwill Amortization (72,764,884) 72,764,884 Deferred Expense Projects (23,317) Deferred Projects- TXU Acquistion Unicap Section 263A Costs 1,4,67 (1,4,67) Allowance for Doubtful Accounts 1,24,852 (1,24,852) Clearing Account-Adjusbnent Charitable Contribution Carryover 17,739 (17,739) Prepayments (1,167,58) Rate Case Accrual (11,475) 11,475 TX Rule 8.29 Deferral (7,868,367) Reg Asset Benefit Accrual (618,616) WACOG to FIFO Adjustment (2,78,545) 2,78,545 Regulatory Liability-Mid-Tex Intra Period Tax Allocation (234,49) 234,49 Regulatory Liability- 217 Gross Up 66,6,742 (1,377,64) State Net Operating Loss 539,322 Federal Tax on State NOL (113,258) Total Mid-Tex Direct (Sum Ln 2 through Ln 33) (581,559,74) 9,819, ,539 (1,933,98) 8,192 37, ,794 15,265,55 (1,933,69) (63, 772,7 46) 46,57,26 (877,64) (23,317) (1,167,58) (7,868,367) (618,616) 64,749,11 539,322 (113,258) (49,74.285) WP_B-6 Page 1 of3

38 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS 19/28283 (1) TEST YEAR ENDING DECEMBER 31, 217 No. Description (a) Assets J (Liabilities) w Per Assets I (Liabilities) w Book Balances Adjustments Adjusted Balances (b) (c) (d)= (b)+(c) 36 SSU- Customer Support (Div ): 37 MIPNPP Accrual 38 Vacation Accrual Workers Camp Insurance Reserve FAS 16 Adjustment CWIP RWIP Fixed Asset Cost Adjustment Depreciation Adjustment Clearing Account-Adjustment Charitable Contribution Carryover Prepayments Intra Period Tax Allocation Total Customer Support (Sum Ln 37 through Ln 48) Allocation to Mid-Tex SSU Customer Support Allocated to Mid-Tex (Ln 49 times Ln 5) 54 SSU- General Office (Div 2): 55 Directors - Dererreo tjonus MIPNPP Accrual Miscellaneous Accrued Self Insurance- Adjustment Vacation Accrual Workers Camp Insurance Reserve SEBP Adjustment Restricted Stock Grant Plan Rabbi Trust Restricted Stock- MIP Directors Stock Awards Pension Expense F AS 16 Adjustment CWIP RWIP Fixed Asset Cost Adjustment Depreciation Adjustment (531,43) 6,868 (468,235) (86) (23,662,64) 6,896,689 (298,1) (18,56,781) 52.13% (9,413,),396 (1,299,225) 1,684,755 9,496 72,398 17,158, ,318 91,834 8,63,729 4,34,733 (7,457,49) 5,799,14 (55,78) (2,47) (21,446,248) 4,98, , , % 244,91 (1,684,755) 55,78 (531,43) 6,868 (86) (23,662,64) 6,896,689 (298,1) (17,588,546) 52.13% (9, 168,99),396 (1,299,225) 9,496 72,398 17,158, ,318 91,834 8,63,729 4,34,733 (7,457,49) 5,799,14 (2,47) (21,446,248) 4,98,373 WP_B-6 Page 2 of 3

39 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS 19/282/283 (1) TEST YEAR ENDING DECEMBER 31, 217 No. Assets I (Liabilities) Per Description Book Balances Adjustments (a) (b) (c) Assets I (Liabilities)- Adjusted Balances (d) (b)+(c) Section 481 (a) Cushion Gas 343,37 (343,37) Section 481(a) Pack Gas 41,663 (41,663) Deferred Expense Projects Allowance for Doubtful Accounts 1 (1) Clearing Account-Adjustment (9,68) Charitable Contribution Carryover 4,737,632 (4,737,632) Prepayments (3,943,76) Stock Option Expense Federal & State Tax Interest 455,745 VA Charitable Contributions Regulatory Liability-Atmos 19 Intra Period Tax Allocation (1,737,96) FD- NOL Credit CarryfoJWard- Utility 48,66,663 FD- NOL Credit CarryfoJWard- Non Reg (154,641,288) 154,641,288 FD-NOL Credit CarryfoJWard- Other 4,981,246 (4,981,246) FD - F AS 115 Adjustment (2,497,45) FD- AMT Minimum Tax Credit ST- Valuation Allow Enterprise Zone ltc (,928),928 FD- Valuation Allow Fed Tax Enterprise Zone ltc 25,395 (25,395) ST - Enterprise Zone ltc 1,841,184 (1,841,184) FD-Treasury Lock Adjustment-Realized 14,645,475 FD-Treasury Lock Adjustment-Unrealized 26,55,897 (26,55,897) FD -Federal Tax on Enterprise ltc (386,649) 386,649 Total SSU General Office (Sum Ln 55 through Ln 94) 382,375, ,493,52 Allocation to Mid-Tex 38.21% 38.21% SSU General Office Allocated to Mid-Tex (Ln 95 t1mes Ln 96)!_ 146,15,554 44,13,67 (9,68) (3,943,76) 455,745 (1,737,96) 48,66,663 (2,497,45) 14,645, , % 19,235,622 Total SSU ADIT Allocated to Mid-Tex (Ln 51 plus Ln 97) 136,692,555 44, ,66,713 Total ADIT Direct and Allocated 11 (Ln 34 plus Ln 99) (444,867,186) 135,193,614 (39,673,572) 13 Notes: Credit amounts are in parentheses Adjustments are for those items not included in rate base for ratemaking purposes. WP _B-6 Page 3 of 3

40 File Date: March 3, 218 No RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31,217 AMORTIZATION OF REGULATORY LIABILITY Beginning of Year End of Year Rate Base Rate Base Year Ended Adjustment Annual Adjustment Dec. 31 Amount Amortization (1) Amount (a) (b) (c) (d) ,813, ,813,479,75, ,737, ,737,918,75, ,662, ,662,356,75, ,586, ,586,795,75, ,511, ,511,233,75, ,435, ,435,671,75, ,36, ,36,11,75,562 25,284, ,284,548,75, ,28, ,28,986,75, , ,425,75, ,57, ,57,863,75, ,982, ,982,31,75, ,96, ,96,74,75, ,831, ,831,178,75,562,755, ,755,616,75,562 18,68, ,68,55,75,562 96,64, ,64,493,75,562 84,528, ,528,932,75,562 72,453, ,453,37,75,562 6,377, ,377,88,75,562 48,32, ,32,247,75,562 36,226, ,226,685,75,562 24,151, ,151,3,75,562,75, ,75,562,75,562 () Note: 1. The annual amortization of a 24 year recovery period is based on the Reverse South Georgia Method. Balance as of December 31, 217 (e) 289,813,479 WP _B-6.1 Page 1 of 1

41 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31,217 MIDPOINT OF REGULATORY LIABILITY No. Month (a) Beginning Month Monthly Balance Amortization (1) (b) (c) End of Month Rate Base Adjustment Amount (2) (d) September-18 October ,813,479 1,6,297 November ,87,183 1,6,297 December ,8,886 1,6,297 January ,794,589 1,6,297 February ,788,292 1,6,297 March ,781,995 1,6,297 April ,775,699 1,6,297 May ,769,42 1,6,297 June , 15 1,6,297 July-19 28,756,88 1,6,297 August ,75,511 1,6,297 September ,744,215 1,6, ,813, ,87, ,8, ,794, ,788, ,781, ,775, ,769, , 15 28,756,88 279,75, ,744, ,737,918 WP_B-6.2 Page 1 of 1

42 File Date: March 3, 218 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET TEST YEAR ENDING DECEMBER 31, 217 No. Description (a) Amounts (b) 1 Summarization of Pension and Other Postemployment Benefits Regulatory Asset: 2 3 Pension Asset at December 217 4,623, Total Pension and Other Postemployment Benefits Regulatory Asset {Sum of 3) 4,623, Summarization of Pension and Other Postemployment Benefits Asset Amortization: 8 9 Pension Asset Amortization - Calculated (Pension Asset Amount /1 years) {1) 462, Pension Asset Amortization- Per Book Amount in the Test Year (555,4) 13 Pension Asset Amortization Adjustment ( 9 plus 11) (2) (3) (93,31) Notes:: The annual recorded amortization of the Pension and Other Postemployment Benefits Regulatory Asset cost is included in O&M. expense The adjustment to Pension Asset Amortization is shown on WP _F The current year asset balance includes both a capital and expense component. The Company plans to continue the amortization of 2 the existing deferred amounts through the end of the amortization p~riod. Future additions or reductions to the deferral wi!! be 21 expense only amounts. The capital component will be recorded to utility plant through the overhead process. WP_B-7 Page 1 of 1

43 File Date: March 3,218 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET TEST YEAR ENDING DECEMBER 31, 217 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET SUMMARY No. Time Period (a) Description (b) Amount- Per Period (o) Total Amount (d) Total Asset Amount- 8~ Period {1): January 2- March 2 April2- September 2 October 2- December 2 January 213- September 213 October 213 November 213- December 213 January 214- May June 214- September October 214- December 214 January 215- May June 215- September October 215- December January 216- May June 216- September October 216- December January 217- May June 217- September October 217- December This asset amount was approved in GUO No. 117 and represents the difference between the GUO No benchmark and the fiscal year 2 Towers Watson Actuarial Report. This asset amount represents the difference between the GUO No benchmark and the fiscal year 2 Towers Watson Actuarial Report. The asset amount represents the difference between the GUO No benchmark and the fiscal year 213 Towers Watson Actuarial Report. This asset amount represents the difference between the GUD No. 117 benchmark and the fiscal year 213 Towers Watson Actuarial Report. This asset amount represents the difference between the GUO No. 117 benchmark and the fiscal year 214 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 2 and the fiscal year 214 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 2 and the fiscal year 214 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 213 (GUO No. 1359) and the fiscal year 214 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 213 (GUO No. 1359) and the fiscal year 215 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 213 (GUO No. 1359) and the fiscal year 215 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark wtth a test year of the twelve months ending December 31, 214 and the fiscal year 215 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 214 and the fiscal year 216 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 214 and the fiscal year 216 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 215 and the fiscal year 216 Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 215 and the fiscal year 217 Willis Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark wtth a test year of the twelve months ending December 31, 215 and the fiscal year 217 Willis Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 216 and the fiscal year 217 Willis Towers Watson Actuarial Report. This asset amount represents the difference between the RRM benchmark with a test year of the twelve months ending December 31, 216 and the fiscal year 218 Willis Towers Watson Actuarial Report. Total Asset Values at December 31,217 (Sum s 3 through 2) 1,954,911 3,965,926 2,683,521 2,185,319 47,541 (273,525) (824,74) 31,617 (387,32) (645,534) (434,366) (1,316,18) (2,193,633) 26,276 74,724 4,54 32,537 (428,59) 4,623,691 WP _B-7.1 Page 1 of2

44 File D_ate: March 3,218 ATMOS ENERGY CORP., MID~TEX DIVISION PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET TEST YEAR ENDING DECEMBER 31,217 PENSION AND OTHER POSTEMPLOYMENT BENEFITS REGULATORY ASSET SUMMARY No. Time Period (a) Description (b) Amount- Per Period (c) Total Amount (d) Total Asset Amortization- By Period (2): January 2- December 2 27 January 213- December January 214- December January 215- December January 216- December January 217- December Notes: No amortization was recorded in Calendar Year 2 Amortization recorded in Calendar Year 213 Amortization recorded in Calendar Year 214 Amortization recorded in Calendar Year 215 Amortization recorded in Calendar Year 216 Amortization recorded in Calendar Year 217 Total Asset Amortization at December 31, 217 (Sum s 26 through 31) Net Asset Amount at December 31, 217 (Sum s 22 and 33) (3,573) (826,674) (1,13,364) (836,652) (555,4) 1. The Company has included in rate base, as a regulatory asset, the Companys calculation of the Pension and Other Postemployment Benefits cost in accordance with TEX. UTILITIES 38 CODE, SECTION The annual recorded amortization of the Pension and Other Postemployment Benefrts Regulatory Asset cost is included in O&M expense on Schedule F-1. The annual amortization is 39 based on a ten year amortization period Totals may vary due to rounding. (3,661,663) 962,28 WP_B-7.1 Page 2 of 2

45 File Date: March 3, 218 COMPONENTS OF RATE BASE- GROSS PLANT AS OF DECEMBER 31,217 No. Account (a) Account Descrietion Reference Amount Per Books (b) (C) (d) Adjustments (1} Adiusted Balance (e) (~-(d)+( e) Mid-Tex: Distribution Plant 374 land 969, Land Rights 3,436, Land & Land Rights 375 Structures & Improvements 1,593, Mains-Cathodic Protection 224,632, Mains-Steel 616,88, Mains-Plastic 1,6,154, M&R Station Equipment- General 71,63, M&R Station Equipment- City Gate 5,737, Services 1,292,57, Meters 268,378, Meter Installations 3,67, House Regulators 92,4, Industrial M&R Station Equipment 2,764,882 Total (Sum ofln 3 through Ln 16)..1 4,33,811,466 General Plant 32 Franchises & Consents 18, Computer Software 921, Land 5,141, Structures & Improvements 58,38, Air Conditioning Equipment 323, Office Furniture & Equipment 1,731, Transportation Equipment 1,811, Stores Equipment, Tools, Shop, and Garage Equipment 23,58, Laboratory Equipment 361, Power Oper. Tool & Work Equipment 1,93, Radio Communication Equipment 5,675, Miscellaneous Equipment 1,879, Other Tangible Property 341, Other Tangible Property-Servers Hardware 8, Other Tangible Property-Servers Software 258, Other Tangible Property-Network-Hardware 1,44, Other Tangible Property-PC Hardware 11,98, Other Tangible Property-PC Software 71, Other Tangible Property-Application Software 5,588,144 Total (Sum of ln 2 through Ln 39) 13,594,173 Total Mid-Tex Direct (Ln 17 plus Ln 4) 4,434,45, ,751 3,436,235 1,593,44 (48,387,7) 176,245,24 6,744, ,552,746 17,469,793 1,617,624,79 613,689 72,217, ,737,696 {28,272,611) 1,263,784, , ,36,417 48,3 4,15,788 31,444 92,36, ,777,56 (5,379, 145) 4,253,432,321 18,896 (2,93) 79,231 5,141,158 58,38, ,282 (5,584) 1,681,4 (66,384) 1,744,975,553 23,58, ,884 1,93,358 5,675,755 1,879,51 341,848 8, ,852 1,44,54 11,98,671 71,337 5,588,144 (329,6) 13,265,1 (5,78,25} 4,383,697,434 Schedule C Page 1 of4

46 File Date: March 3, 218 COMPONENTS OF RATE BASE- GROSS PLANT AS OF DECEMBER 31,217 No. Account Account Descri~tion Reference Amount Per Books (a) (b) (c) (d) Adjustments!1~ (e) Adjusted Balance (Q-(d)+(e) 45 SSU- Customer SUQQOrt (Div ): 46 General Plant Land & Land Rights 2,874, Structures & Improvements,669, Improvements to Leased Premises 2,82, Office Furniture & Equipment 2,376, Communication Equipment- Telephone 1,913, Miscellaneous Equipment 7, Other Tangible Property 629, Other Tangible Property-Servers Hardware 1,343, Other Tangible Property-Servers Software 2,23, Other Tangible Property-Network-Hardware 629, Other Tangible Property-PC Hardware 999, Other Tangible Property-PC Software 19, Other Tangible Property-Application Software 9,134,697 6 Total (Sum of Ln 47 through Ln 59) 7,673, Allocation to Mid-Tex 52.13% 62 Customer Support Allocated to Mid-Tex (Ln 6 times Ln 61) 66,556, SSU- Customer SuQQOrt (Div ): 64 General Plant 65 Charles K. Vaughn Center Land & Land Rights 1,886, Structures & Improvements,35, Office Furniture & Equipment 38, Transportation Equipment 96, Tools, Shop, and Garage Equipment 42, Laboratory Equipment 23, Communication Equipment 291, Miscellaneous Equipment 59, Other Tangible Equipment 339, PC Hardware 257, PC Software 13, Other Tangible Property 2,56 78 Total (Sum of Ln 66 through Ln 77) 16,617, Allocation to Mid-Tex 76.47% 8 Customer Support: Charles K. Vaughn Center Allocated to Mid-Tex (Ln 78 times Ln 79), Total Customer Support Allocated to Mid-Tex (Ln 62 olus Ln 8) 79,263,562 2,874,24,669,3 2,82,614 (48,19) 2,328,55 1,913,117 7,16 629,166 1,343,249 2,23, , ,825 19,247 9,134,697 (48,19) 7,625, % 52.13% {25,32) 66,531,351 1,886,443,35,84 38,782 96,29 42,177 23, ,51 59, , ,288 13,892 2,56 16,617, % 76.47%,77,179 (25,32) 79,_?~-~_,529 Schedule C Page 2 of 4

47 File Date: March 3, 218 COMPONENTS OF RATE BASE GROSS PLANT AS OF DECEMBER 31,217 No. Account Account Descri!:!:tion Reference Amount Per Books (a) (b) (C) (d) Adjustments {1) Adjusted Balance (e) (D-(d)+(e). 84 SSU ~Genera! Office (Div 2}: 85 General Plant Structures & Improvements 1,411, Improvements to Leased Premises 9,316, Office Furniture & Equipment 5,118, Remittance Processing Equipment Office Furniture & Equipment Transportation Equipment 7, Stores Equipment Tools & Work Equipment 76, Laboratory Equipment Communication Equipment- Telephone 1,39, Miscellaneous Equipment 136, Other Tangible Property 162, Other Tangible Property-Servers Hardware 37,3, Other Tangible Property-Servers Software 19,5, Other Tangible Property-Network-Hardware 3,548, Other Tangible Property-CPU Other Tangible Property-MF Hardware Other Tangible Property-PC Hardware 2,458, Other Tangible Property-PC Software 1,473, Other Tangible Property-Application Software 67,214, Other Tangible Property-System Software 39, Other Tangible Property-GenStartupCost 18 Total {Sum of Ln 86 through Ln 17) 148,11, Allocation to Mid-Tex 38.21% 11 General Office Allocated to Mid-Tex {Ln 18 times Ln 19) 56,555, SSU - General Office (Div 2): 1 General Plant 113 Greenville Data Center {1.1152) G-Structures & Improvements 9,187, G-Office Furniture & Equip. 63, Total {Sum of Ln 114 through Ln 115) 9,25, Allocation to Mid-Tex 13.95% 118 General Office: Greenville Data Center Allocated to Mid-Tex {Ln 116 times Ln 117) 1,29, ,39 (617,792) 8,698,21 (444,286) 4,674,518 7,5 76,71 1,39, ,51 162,268 (44,53) 36,959,416 19,5,572 3,548,953 2,458,44 1,473,265 (857,853) 66,356,999 39,252 (1,984.46) 146,46, % 38.21% Q:5,62) 55,84,535 9,187,184 63,741 9,25, % 13.95% 1,29,41 Schedule c Page 3 of4

48 File Date: March 3, 218 COMPONENTS OF RATE BASE- GROSS PLANT AS OF DECEMBER 31, 217 No. Account Account Description Reference Amount Per Books Adjustments (1) Adjusted Balance (a) (b) (c) (d) (e) CD=(d)+(e) SSU- General Office (Div 2}: 1 General Plant 2 Distribution and Marketing Office Furniture & Equipment-AEAM 263,338 (75,271) 188, Tools & Work Equipment-AEAM Communication Equipment-AEAM 8,824 8, Miscellaneous Equipment-AEAM 7,388 7, Other Tangible Property-Servers Hardware-AEAM 1,628,9 1,628, Other Tangible Property-Servers Software-AEAM 961, , Other Tangible Property-Network-Hardware-AEAM 6,17 6, Other Tangible Property-PC Hardware-AEAM 314, , Other Tangible Property-Application Software-AEAM 2,675,91 (1,36,733) 19,639, Total (Sum of Ln 3 through Ln 131) 23,92,166 (1,1,4) 22,88, Allocation to Mid-Tex 47.51% 47.51% 47.51% 134 General Office: Distribution & Marketing Allocated to Mid-Tex (Ln 132 times Ln 133) 11,364,471 (528,313) 1,836, SS:U- ~eneral Office {Div 2}: 137 General Plant 138 Align Pipe Projects Other Tangible Property-Servers Hardware-Align 297, , Other Tangible Property-Servers Software-Align 345,73 345, Other Tangible Property-Application Software-Align 17,517,14 17,517, Total (Sum of Ln 139 through Ln 141) 18,16,11 18,16, Allocation to Mid-Tex 6.4% 6.4% 6.4% 144 General Office: Align Pipe Projects Allocated to Mid-Tex (Ln 142 times Ln 143) 1,162,63 1,162, Total General Office Allocated to Mid-Tex (Ln 11 plus Ln 118 plus Ln 134 plus Ln 144) 7,372,99 {1,278,933) 69,93,166 Total SSU Plant Allocated to Mid-Tex (Ln 81 plus Ln 146) 149,635,661 (1,33,966) 148,331, Total Mid-Tex Gross Plant (Ln 42 plus Ln 148) 4,584,41,299 {52,,171} 4,532,29,9 151 Note: Please see relied upon Schedule C CY17 Adjustment.xlsx for details related to adjustments shown in Col (e). The adjustments include 153 removal of Poly 1 previously disallowed and other known and measurable adjustments to gross plant. Schedule C Page 4 of4

49 File Date; March 3, 218 ATMOS ENERGY CORP., MID~TEX DIVISION COMPONENTS OF RATE BASE- ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 217 No. Account Account Description Reference Amount Per Books Adjustments Adjusted Balance (a) (b) (c) (d) (e) (~=(d)+(e) Mid-Tex: 2 Distribution Plant Land Land Rights 1,496,141 1,496, Structures & Improvements 1,,4 1,, Mains~Cathodic Protection 91,891,67 (42,956,764) 48,934, Mains~Steel 211,431, ,431, Mains~Piastic 43,21,928 (134,278) 43,76, M&R Station Equipment- General 24,532,3 24,532, M&R Station Equipment~ City Gate 3,197,871 3,197, Services 417,539,554 (34,569,722) 382,969, Meters 64,15,92 64,15, Meter Installations 34,257,57 (1,233) 34,256, House Regulators 21,942,16 (116) 21,942, Industrial M&R Station Equipment 327,91 327,91 16 Total (Sum of Ln 3 through Ln 15) 1,31,843,24 (77,662,84) 1,224,18, General Plant Franchises & Consents 7,231 7, Computer Software 921,324 (3,721) 797, Land Structures & Improvements 15,275,69 15,275, Air Conditioning Equipment 52,729 52, Office Furniture & Equipment 971,342 (,1) 959, Transportation Equipment 755,924 (3,5) 725, Stores Equipment 23,454 23, Tools, Shop, and Garage Equipment 6,393,734 6,393, Laboratory Equipment 28,926 28, Power Oper. Tool & Work Equipment 676, , Radio Communication Equipment 3,771,85 3,771, Miscellaneous Equipment 794, , Other Tangible Property 136, , Other Tangible Property~Servers Hardware 8,686 8, Other Tangible Property-Servers Software 72,896 72, Other Tangible Property-Network-Hardware 491, , Other Tangible Property-PC Hardware 5,77,22 5,77, Other Tangible Property-PC Software 51,919 51, Other Tangible Property~Application Software 3,159,69 3,159,69 39 RWIP Retirement Work in Progress {1,579,392) {1,579,392) 4 Total (Sum of Ln 19 through Ln 39) 38,423,368 {165,826} 38, Total Mid-Tex Direct (Ln 16 plus Ln 4) 1,34,266,392 (77,827,91) 1,262,438, ScheduleD Page 1 of4

50 File Date: March 3, 218 ATMOS ENERGY CORP., MID~TEX DIVISION COMPONENTS OF RATE BASE~ ACCUMULATED DEPRECIATION AS OF DECEMBER 31,217 No. Account Account DescriEtion Reference Amount Per Books (a) (b) (C) (d) Adjustments (e) Adjusted Balance m (d)+(e) 45 SSU ~Customer SUQQOrt (Div ): 46 General Plant Structures & Improvements 1,623, Improvements to Leased Premises 1,599, Office Furniture & Equipment 776, Communication Equipment- Telephone 979, Miscellaneous Equipment 1, Other Tangible Property 417, Other Tangible Property~Servers Hardware 4,331, Other Tangible Property~Servers Software 1,59, Other Tangible Property~Network~Hardware 326, Other Tangible Property~PC Hardware 483, Other Tangible Property-PC Software 4, Other Tangible Property-Application Software 25,972,94 59 RWIP Retirement Work in Progress 6 Total (Sum of Ln 47 through Ln 59) 37,74, Allocation to Mid-Tex 52.13% 62 Customer Support Allocated to Mid-Tex (ln 6 times Ln 61) 19,655, SSU- Qustomer SUQQOrt (Div }: 64 General Plant 65 Charles K. Vaughn Center Land & Land Rights Structures & Improvements 2,558, Office Furniture & Equipment 32, Transportation Equipment 92, Tools, Shop, and Garage Equipment 86, Laboratory Equipment 14, Communication Equipment 142, Miscellaneous Equipment 13, Other Tangible Equipment 131, PC Hardware 224, PC Software 69, Other Tangible Property 9,7 78 Total (Sum of Ln 66 through Ln 77) 3,491, Allocation to Mid-Tex 76.47% Customer Support: Charles K. Vaughn Center Allocated to Mid-Tex (Ln 78 times Ln 79) 2,67,38 Total Customer Support Allocated to Mid-Tex (Ln 62 plus Ln 8) _];_ 22,325,784 1,623,556 (4,148) 1,594,993 (1,546) 765, ,457 1,9 417,96 4,331,246 1,59,24 326, ,983 4,641 25,972,94 (14,694) 37,69, % 52.13% (7,66) 19,647,815 2,558,133 32,35 92,71 86,79 14, ,982 13, ,52 224,945 69,641 9,7 3,491, % 76.47% 2,67,38 (7,66) 22,318,4 ScheduleD Page 2 of4

51 File Date: March 3, 218 ATMOS ENERGY CORP., MID~TEX DIVISION COMPONENTS OF RATE BASE~ ACCUMULATED DEPRECIATION AS OF DECEMBER 31,217 No. Account Account Descrif!tion Reference Amount Per Books (a) (b) (c) (d) Adjustments (e) Adiusted Balance m (d)+(e) 85 S~U - General Office (Div 2): 86 General Plant Structures & Improvements 47, Improvements to Leased Premises 9,311, Office Furniture & Equipment 1,747, Remittance Processing Equipment Office Furn. - Copiers & Type Transportation Equipment 5, Stores Equipment Tools & Work Equipment 29, Laboratory Equipment Communication Equipment- Telephone 55, Miscellaneous Equipment 42, Other Tangible Property 162, Other Tangible Property-Se!ilers Hardware 19,853, Other Tangible Property-Se!ilers Software 16,66, Other Tangible Property-Network-Hardware 2,392, Other Tangible Property-CPU other Tangible Property-MF Hardware Other Tangible Property-PC Hardware 992, Other Tangible Property-PC Software 199, Other Tangible Property-Application Software 31,264, Other Tangible Property-System Software 43, Other Tangible Property_-GenStartupCost 19 Retirement Work in Progress 11 Total {Sum of Ln 87 through Ln 19) 83,628, Allocation to Mid-Tex 38.21% General Office Allocated to Mid-Tex 1 (Ln 11 times Ln 111) 31,954, SSU- Gene:rnl Qffice (Div 2): 114 General Plant 115 Greenville Data Center (1.1152) G-Structures & Improvements 3,468, G-Office Furniture & Equip. 3, Total (Sum of Ln 116 through Ln 117) 3,498, Allocation to Mid-Tex 13.95% General Office: Greenville Data Center Allocated to Mid-Tex (Ln 118 times Ln 119) 488,?8 47,719 {554,789) 8,757,99 (117,734) 1,63, ,79 29,492 55,591 42, ,377 (44,53) 19,89,15 16,66,353 2,392, , ,468 (597,589) 3,666,544 43,473 (1,314,642) 82,313, % 38.21% (52,325) 31,451,964 3,468,461 3,21 3,498, % 13.95% 488,28 ScheduleD Page 3 of4

52 File Date: March 3,218 ATMOS ENERGY CORP., MID~TEX DIVISION COMPONENTS OF RATE BASE- ACCUMULATED DEPRECIATION AS OF DECEMBER 31,217 No. Account Account Description Reference Amount Per Books Adjustments Adjusted Balance (a) (b) (c) (d) (e) CD=(d)+(e) SSU ~ General Office CDiv 21: General Plant Distribution and Marketing Office Furniture & Equipment-AEAM Tools & Work Equipment~AEAM Communication Equipment~AEAM Miscellarieous Equipment-AEAM Other Tangible Property~Servers Hardware~AEAM Other Tangible Property~Servers Software-AEAM Other Tangible Property-Network-Hardware-AEAM Other Tangible Property-PC Hardware-AEAM Other Tangible Property-Application Software-AEAM Total (Sum of Ln 5 through Ln 133) Allocation to Mid-Tex General Office: Distribution & Marketing Allocated to Mid-Tex (Ln 134 times Ln 135) SSU - General Office CDiv 2): General Plant Align Pipe Projects Other Tangible Property-Servers Hardware-Align Other Tangible Property-Servers Software-Align Other Tangible Property-Application Software-Align Total (Sum ofln 141 through Ln 143) Allocation to Mid-Tex General Office: Align Pipe Projects Allocated to Mid-Tex (Ln 144 times Ln 145) Total General Office Allocated to Mid-Tex (Ln 1 plus Ln plus Ln 136 plus Ln 146) Total SSU Accumulated Depreciation Allocated to Mid-Tex (Ln 82 plus Ln 148) 61,411,753 (826,937} 6,584, Total Mid-Tex Accumulated Depreciation (Ln 42 plus Ln 15) 1,41,678,144 (78,654,847) 1,323,23, Note: Please see relied upon Schedule D Adjustment.xlsx for details related to adjustments shown in Col (e). The adjustments include removal of Poly previously disallowed and other known and measurable adjustments to accumulated depreciation. 96,871 (16,955) 79, ,52 3, ,97,23 1,97,23 43,68 43,68 41,313 41,313 4,592 4,592 11,867,27 (65,173) 1117,34 13,578,48 (667,8),911, % 47.51% 47.51% 6, (316,952) 6,_134,149 39,524 39,524 32,977 32,977 2,936,586 2,936,586 3,9,87 3,9,87 6.4% 6.4% 6.4% 192, ! ,85,969 (819,277) 38,266,692 ScheduleD Page 4 of4

53 File Date: March 3, 218 CASH WORKING CAPITAL TEST YEAR ENDING DECEMBER 31, 217 TestY ear Avg. Daily Revenue No. Description Expenses Reference Expense La~ (a) (b) (c) ( d)=(b )/365 (e) Expense Net Lag Lag (n (g)-(e)-(n Working Capital Requirement (h)=(d)x(g) Gas Supply Expense 2 Rider GCR Part A 391,525,955 Schedule H 1,72, Rider GCR Part B 389,231,63 Schedule I 1,66, Total Gas Supply Expense 78,757,558 Sum Ln 2 through Ln Operation & Maintenance 7 Other O&M- Labor (1) 63,151,997 (2) 173, Other O&M- Non-Labor 133,81,327 Ln 9 minus Ln 7 364, Total Operation & Maintenance 196,233,324 Schedule F Taxes Other Than Income Ad Valorem 36,984,861 Schedule F-5 11, Payroll Taxes 2,739,872 Schedule F-5 7, Franchise Fees (3) 31,91,428 Schedule F-5 X ewe factor 85, Railroad Commission Fee 76,155 Schedule F Allocated Taxes-Shared Services: 18 Ad Valorem 61,169 WP_F-5.1,Col (b), Ln 59 1, Payroll Taxes 2,65,371 WP _F-5.1,Col (b), Ln 48 5, Total Taxes Other Than Income Taxes 73,558,856 Sum Ln through Ln State Income Tax (Gross Margin) 4,653,46 Schedule F-6, Current Federal Income Tax (4) Interest on Customer Deposits 117,764 Schedule F Total Cash Working Capital Requirement Sum Lns 4,9,2,22,24, Notes: Includes Mid-Tex and SSU. Labor and Mid-Tex Direct MIPNIP {excludes SSU MIPNPP) WP _F-5.1, Col (b), Ln 45 + WP _F-2.1, Col (e) Ln 17 + WP _F-2.1 Page 2, Col (c) Ln 31+ Mid-Tex per book MIPNPP Paid in Arrears portion of Franchise Fees is per the GUO 117 CWC study Current portion of Federal Income Tax set to zero this year because of the revaluation of AD IT due to Tax Cuts and Jobs Act. 4.4 (4.23) 38.2 (2.3) (177.33) (63.7) (58.67) (177.33) (47.) (.58) (295.66) (4,536,952) (2,164,768) (6,71,72) 1,89,781 1,432,93 3,242,684 (17,968,563) 34,23 (5,372,633) (,241) (292,69) 25,83 (23,585,474) 1,6,352 (95,393) (26,79,551) Schedule E Page 1 of 1

54 File Date: March 3, 218 ATMOS ENERGY CORP., MID~TEX DIVISION BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES~ACCOUNTS (1) TEST YEAR ENDING DECEMBER 31,217 No Assets I Assets I (Liabilities)~ Per (Liabilities)~ Book Balances at Adjusted Balances Description Adjustments at 131/16 (a) (b) (c) (d) (b)+(c) Mid-Tex: Ad Valorem Taxes (1,548,666) (1,548,666) MIPNPP Accrual (1,94,489) (1,94,489) Miscellaneous Accrued Self Insurance- Adjustment Vacation Accrual Workers Comp Insurance Reserve 525, ,321 SEBP Adjustment 66,822 66,822 FAS 16 Adjustment 24,68,158 24,68,158 CWIP (7,349,44) 7,349,44 RWIP (3,93,19) (3,93,19) Fixed Asset Cost Adjustment (863,335,568) (863,335,568) Depreciation Adjustment 69,379,166 69,379,166 Section 481 (a) TPR. Deferred Gas Costs (28,722,283) 28,722,283 Over Recoveries of PGA (25,425,23) 25,425,23 TXU Goodwill Amortization (17,76,8) 17,76,8 Deferred Expense Projects (4,167) (4,167) Deferred Projects ~ TXU Acquistion Unicap Section 263A Costs 3,593,587 (3,593,587) Allowance for Doubtful Accounts 1,618,585 (1,618,585) Clearing Account~Adjustment Charitable Contribution Carryover Prepayments (1,335,924) (1,335,924) Rate Case Accrual (6,967) 6,967 WACOG to FIFO Adjustment (3,946,286) 3,946,286 Reg Asset Benefit Accrual (1,26,292) (1,28,292) TX Rule 8.29 Reg Asset Deferral (11,345,456) (11,345,456) Intra Period Tax Allocation 463,27 (463,27) State Net Operating Loss 644, ,576 Federal Tax on State NOL (225,62} (225,62} Total Mid~Tex Direct (Sum Ln 2 through Ln 31) (955,7,2} 166,851,72 (788,219,14) WP _E~1 Page 1 of3

55 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES-ACCOUNTS (1) TEST YEAR ENDING DECEMBER 31, 217 No. Description (a) Assets 1 (Liabilities)- Per Book Balances at 131/16 (b) Adjustments (c) Assets I (Liabilities) Adjusted Balances at 131/16 (d) = (b)+(c) 34 SSU- Customer Support: 35 MIPNPP Accrual 36 Vacation Accrual 37 Workers Comp Insurance Reserve 38 FAS 16 Adjustment 39 CWIP 4 RWIP 41 Fixed Asset Cost Adjustment 42 Depreciation Adjustment 43 Clearing Account-Adjustment 44 Charitable Contribution Carryover 45 Prepayments 46 Intra Period Tax Allocation Total Customer Support (574,777) (255,614) (137) (45,459,621) 17,798, , ,614 (137) (45,459,621) 17,798, (Sum Ln 35 through Ln 46) (28,491,717) 83,391 (27,661,326) 48 Allocation to Mid-Tex 52.13% 52.13% 52.13% SSU Customer Support Allocated to Mid-Tex 49 (Ln 47 times Ln 48) (14,852,732) 432,883 (14,419,849) SSU - General Office: 53 Directors Deferred Bonus 54 MIPNPP Accrual 55 Miscellaneous Accrued 56 Self Insurance- Adjustment 57 Vacation Accrual 58 Workers Camp Insurance Reserve 59 Rabbi Trust- True Up 6 SEBP Adjustment 61 Restricted Stock Grant Plan 62 Rabbi Trust 63 Restricted Stock - MIP 64 Directors. Stock Awards 65 Pension Expense 66 FAS 16 Adjustment 67 CWJP 68 RWIP 69 Fixed Asset Cost Adjustment 7 Depreciation Adjustment 166,965 1,498,97 2,915,283 14,671 26,316,34 4,631,448 1,442,452,632,356 5,939,395 (3,651,6) 8,944,489 1,77,565 (3,782) (42,571,576) 16,156,193 (1,498,97) (2,915,283) (26,316,34) (1,442,452) (,632,356) (1,77,565) 166,965 14,671 4,631,448 5,939,395 (3,651,6) 8,944,489 (3,782) (42,571,576) 16,156,193 WP_E-1 Page 2 of 3

56 File Date: March 3, 218 ATMOS ENERGY CORP., MID~TEX DIVISION BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES~ACCOUNTS 19/282/283 (1) TEST YEAR ENDING DECEMBER 31,217 Assets I Assets I (Liabilities)~ Per (Liabilities)~ Book Balances at Adjusted Balances No. Description /31/16 Adjustments at /31/16 (a) (b) (c) (d) (b)+(c) 71 Section 481 (a) Cushion Gas 549,29 (549.29) 72 Section 481 (a) Pack Gas 66,639 (66,639) 73 Deferred Expense Projects 74 Allowance for Doubtful Accounts 2 (2) 75 Clearing Account~Adjustment 76 Charitable Contribution Carryover 11,32,917 (11,32,917) 77 Prepayments (4,47,588) (4.47,588) 78 Stock Option Expense 79 Federal & State Tax Interest 439, ,887 8 VA Charitable Contributions (9.275,764) 9,275, Regulatory Uabllity~Atmos Intra Period Tax Allocation 83 FD ~ NOL Credit CarryfoJWard ~ Utility 761,9, ,9, FD ~ NOL Credit Carryforward ~ Non Reg (245,531,762) 245,531, FD~NOL Credit CarryfoJWard ~Other 6,52, (6,52, ) 86 FD- FAS 115 Adjustment (2,87,642) (2,87,642) 87 FD- AMT Minimum Tax Credit 1,99,286 1,99, ST- Valuation Allow Enterprise Zone ltc (,928), FD~ Valuation Allow Fed Tax Enterprise Zone ltc 42,325 (42,325) 9 ST ~Enterprise Zone ltc 1,755,554 (1,755,554) 91 FD~Treasury Lock Adjustment~Realized 1,47,977 1,47, FD-Treasury Lock Adjustment~Unrealized 44,881,29 (44,881,29) 93 FD -Federal Tax on Enterprise ltc ( ) 614,444 Total SSU General Office 94 (Sum Ln 53 through Ln 93) 594,31,56 144,65,38 738,681, Allocation to Mid~Tex 38.21% 38.21% 38.21% SSU General Office Allocated to Mid~Tex 96 (Ln 94 times Ln 95) 226,979,459 55,27, ,25, Total ssu ADIT Allocated to Mid~Tex 98 (Ln 49 plus Ln 96) 2,6,727 55,73, ,83, Total ADIT Direct and Allocated 1 (Ln 32 plus Ln 98) (742,943,485) 222,554,734 (52,388,751) 11 Note: 1: Credit amounts are in parentheses. WP _E-1 Page 3 of 3

57 File Date: March 3, 218 OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31, 217 No. FERC Acct (a) Description (b) Per Book Amount (c) Adjustments (d) Adjusted Amount (e)-(c)+(d) Other storage-operation supervision and engineering 222 Operation Supervision and Engineering 6,45,267 Distribution Load Dispatching 864,767 Compressor Station Labor and Expenses 395 Mains and Services Expenses 54,238,623 Measuring and Regulating Station Expenses- General 53,415 Measuring and Regulating Station Expenses- Industrial 5,985 Measuring and Regulating Station Exp. -City Gate Chk. Sta. 63 Meter and House Regulator Expenses 3,938,82 Customer Installations Expenses 411,452 Other Expenses 9,691,349 Rents 49,754 Maintenance Supervision and Engineering (5,313) Maintenance of Structures and Improvements 2,688 Maintenance of Mains 1,452,215 Maintenance of compressor station equipment 1,634 Main!. of Measuring and Regulating Station Equip.- General 2,234,765 Main!. of Measuring and Regulating Station Equip. - Industrial Main!. of Measuring and Regulating Station Equip. - City Gate Maintenance of Services 165,288 Maintenance of Meters and House Regulators 243,558 Maintenance of Other Equipment 64,4 Maintenance of Other Equipment Supervision 296,1 Meter Reading Expense 6,94,195 Customer Records and Collection Expenses 16,655,729 Uncollectible Accounts 5,542,379 Miscellaneous Customer Accounts Expenses 115 Supervision Customer Assistance Expenses 44,525 Informational and Instructional Advertising Expenses (222) ,416, , ,8 54,495, ,1 5, ,732 4,19,534 9,95 42,547 11,596 9,72,945 49,754 - (5,313) - 2,688 19,7 1,471,927 1,634 42,38 2,277,73 3, ,57 5, ,945 3, ,974 6,23 32, ,464 7,73,659 88,966 16,744,695 2,925,765 8,468, (338,627) 65,898 Schedule F-1 Page 1 of 2

58 File Date: March 3, 218 OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31,217 No. FERC Acct (a) Description (b) Per Book Amount (c) Adjusted Adjustments Amount {d) (e)-( c)+( d) Miscellaneous Customer Service and Informational Expenses 2,677,698 Supervision 1,185 Demonstrating and Selling Expenses 1,669 Advertising Expenses 224,894 Miscellaneous Sales Expenses Administrative and General Salaries 1,56,192 Office Supplies and Expenses 328,57 Administrative Expenses Transferred -Credit 63,434,369 Outside Services Employed 637,45 Property Insurance 441,546 Injuries and Damages 2,167,281 Employee Pensions and Benefits 14,388,799 Regulatory Commission Expenses 97,649 Duplicate Charges- Credit General Advertising Expenses Miscellaneous General Expense 693,867 Rents 242,621 Maintenance of General Plant Total Operation and Maintenance Expenses (Sum Ln 1 through Ln 49) 197,141,156 37,614 2,715, , ,894 48,631 1,68, ,57 (3,952,619) 59,481,75 351, ,591 (,48) 429,66 (1,78,998) 1,88, ,763 14,932,562 (97,649) (7,381) 686, , (97,832) 196,233,324 Schedule F-1 Page 2 of 2

59 File Date: March 3, 218 ADJUSTMENTS TO OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER31, 217 Medical and Pensions and FERC Dental Retiree Medical Property Injuries and Employee No. Account Account Description Base Labor Benefits Benefits Insurance Damages Expense () (b) (o) (d) (o) (n (g) (h) 1 84 Other storage-operation supervision and engineering s 5 s 2 87 Operation Supervision and Engineering 22, Distribution Load Dispatching Compressor Station Labor and Expenses Mains and Services Expenses 257, Measuring and Regulating Station Expenses -General Measuring and Regulating Station Expenses -Industrial Measuring and Regulating Station Exp. - Ctty Gate Chk. Sta Meter and House Regulator Expenses 8, Customer Installations Expenses 9, Other Expenses 13, Rents Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of Mains 19, Maintenance of compressor station equipment Malnt. of Measuring and Regulating Station Equip.- General 42, Main!. of Measuring and Regulating Station Equip.- Industrial Main!. of Measuring and Regulating Station Equip. -City Gate Maintenance of Services 3, Maintenance of Meters and House Regulators 5, Maintenance of Other Equipment 3, Maintenance of Other Equipment Supervision 6, Meter Reading Expense 133, Customer Records and Collection Expenses 88, Uncollectible Accounts Miscellaneous Customer Accounts Expenses Supervision 3 98 Customer Assistance Expenses Informational and Instructional Advertising Expenses Miscellaneous Customer Service and Informational Expenses 48, Supervision 34 9 Demonstrating and Selling Expenses Advertising Expenses Miscellaneous Sales Expenses Administrative and General Salaries 48, Office Supplies and Expenses Administrative Expenses Transferred- Credit 787,1 31,429 (87,o47) (1,415) Outside Services Employed Property Insurance (,48) Injuries and Damages 416, Employee Pensions and Benefrts 387, , Regulatory Commission Expenses Duplicate Charges -Credit General Advertising Expenses Miscellaneous General Expense Rents Maintenance of General Plant 5 51 Total Adjustments to Operation and Maintenance Expenses f572j s 161,885 (13,895) Adjustment Reference: WP_F-2.1 WP_F-2.2 WP_F-2.3 WP_F-2.4 WP_F-2.5 WP_F-2.6 Schedule F-2 Page 1 of2

60 File Date: March 3, 218 ADJUSTMENTS TO OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31,217 FERC No. Account Account Description l l (b) 1 84 Other storage-operation supervision and engineering 2 87 Operation Supervision and Engineering Distribution Load Dispatching Compressor Station Labor and Expenses Mains and Services Expenses Measuring and Regulating Station EXpenses- General Measuring and Regulating Station Expenses- Industrial Measuring and Regulating Station Exp. -City Gate Chk. Sta Meter and House Regulator Expenses Customer Installations Expenses Other Expenses 881 Rents Maintenance Supervision and Engineering Maintenance of Structures and Improvements Maintenance of Mains Maintenance of compressor station equipment Main!. of Measuring and Regulating Station Equip. -General Main!. of Measuring and Regulating Station Equip. -Industrial Maint. of Measuring and Regulating Station Equip. - Clty Gate Maintenance of Services Maintenance of Meters and House Regulators Maintenance of other Equipment Maintenance of other Equipment Supervision Meter Reading Expense Customer Records and Collection Expenses Uncollectible Accounts Miscellaneous Customer Accounts Expenses Supervision 3 98 Customer Assistance Expenses Informational and Instructional Advertising Expenses Miscellaneous Customer Service and Informational Expenses Supervision 34 9 Demonstrating and Selling Expenses Advertising Expenses Miscellaneous Sales Expenses Administrative and General Salaries Office Supplies and Expenses Administrative Expenses Transferred -Credit Outside Services Employed Property Insurance Injuries and Damages Employee Pensions and Benefits Regulatory Commission Expenses Duplicate Charges- Credit General Advertising Expenses Miscellaneous General Expense Rents Maintenance of General Plant 5 51 Total Adjustments to Operation and Maintenance Expenses Adjustment Reference: ssu Service-Level Factors (i) (2,891,982) Miscellaneous Adjustments (j) s (227) (11,773) (2,87,762) 351,142 (1,495,665) (93,31) (97,649) Uncollectible Expense (k) 2,925,765 Rule Compliance (I) (47) (546) (1,884) (11,241) (1,954) (7,381) Customer Conservation Proqram (m) (338,627) Total Adjustments () (222) 11, , ,732 9,95 11,596 19,7 42,38 3,282 5,387 3,934 6, ,966 2,925,765 2 (338,627) 37,614 48,631 (3,952,619) 351,142 (.48) (1,78,998) 543,763 (97,649) (7,381) (fj:!fl1.9132} (3c.41.1, l_~~.l... 2);i2!),765 (23,53) s ( ) (97,832) WP_F-2.7 WP_F-2.8 WP_F-2.9 WP_F2.1 WP_F-2.11 Schedule F-2 Page 2 of 2

61 File Date: March 3, 218 ATMOS ENERGY CORP., MID TEX DIVISION BASE LABOR ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Shared Services R Customer Support No. Description Employees (a) (b) Shared Services- General Office Employees (c) Shared Services R Total (3) (d) MidRTex Direct Empioyees (e) Total Adjustment (~ 1 Annualized December 217 Employee Salaries (1), (5) 28,874,325 46,398,9 75,272, Test Year Base Labor adjusted for excluded cost centers (5) 27,651,879 45,495,719 73,147, Base Labor Adjustment Total (Ln 1 minus Ln 3) 1,222,446 92,49 2,4, Allocation to MidRTex (2) 52.13% 38.21% 43.55% 8 9 Allocated Base Labor Adjustment (Ln 5 times Ln 7) 637, , , O&M Expense Factor (2) 86.3% 69.28% 8.15% Test Year Base Labor O&M Expense Adjustment 13 (Ln9timesln11) 548,22 238, , Adjustment Summary: 16 Account ,22 238, ,1 17 Other O&M Accounts (4) 18 Total (Ln 16 plus Ln 17) 548,22 238, , Notes: Annual salaries are base labor only and do not include items such as overtime and bonuses Shared Services based on FY18 factors, adjusted to the four-factor formula including Operating Income. 23 Mid-Tex factors are based upon actual test year ratios The factors in Col (d) are a calculation derived from the totals of Customer Support and General Office and are only used in the calculation 25 of other employee-related adjustments Distribution by account is based upon per book O&M test year labor (See Page 2) SSU amounts exclude cost centers which do not allocate to MidRTex and employee time charged below the line for rate making purposes. 17,732,85 14,981,762 2,751, % 1,959, % 784, , , ,1 784,971 1,572,83 WP _F-2.1 Page 1 of2

62 File Date: March 3, 218 BASE LABOR ADJUSTMENT DISTRIBUTION OF MID-TEX DIRECT BY FERC ACCOUNT TEST YEAR ENDING DECEMBER 31,217 FERC Ratio of Labor by No. Account Account Descri~tion Per Book O&M Labor Account (a) (b) (c) (d) 1 84 Other storage-operation supervision and engineering 222.6% 2 87 Operation Supervision and Engineering 1,38, % Distribution Load Dispatching.% Compressor Station Labor and Expenses 151.4% Mains and Services Expenses 11,633, % Measuring and Regulating Station Expenses - General 26,59.747% Measuring and Regulating Station Expenses- Industrial.% Measuring and Regulating Station Exp. -City Gate Chk. Sta. 63.2% Meter and House Regulator Expenses 3,649, % Customer Installations Expenses 411, % Other Expenses 69, % 886 Maintenance of structures and improvements.% Maintenance of Mains 891,3 2.51% Maint. of Meas. and Reg. Sta. Equip.- Gen. 1,9, % Maint. of Meas. and Reg. Sta. Equip. -Ind..% Maint. of Meas. and Reg. Sta. Equip. - City Gate.% Maintenance of Services 148, % Maintenance of Meters and House Regulators 243, % Maintenance of Other Equipment 177,844.5% 2 91 Supervision 28, % Meter Reading Expense 6,33, % Customer Records and Collection Expenses 4,21, % Miscellaneous Customer Accounts Expenses 91.3% Customer Serivce and Informational- Customer Assistance Expenses.% Miscel!aneous Customer Service and Informational Expenses 2,28, % Supervision.% 27 9 Demonstrating and Selling Expenses.% Advertising Expenses.% Administrative and General Salaries 2,198, % Office Supplies and Expenses.% Outside Services.% 32 Total (Sum Ln 1 through Ln 31) 35,486,45 1.% Base Labor Adjustment Allocated by Account (4) (e)-(c)x(d) 5 22, , ,732 9,95 13,48 19,7 42,38 3,282 5,387 3,934 6,23 133,464 88, ,855 48, ,971 WP_F-2.1 Page 2 of 2

63 File Date: March 3, 218 MEDICAL AND DENTAL BENEFITS ADJUSTMENT TEST YEAR ENDING DECEMBER 31,217 No Description Shared Services Mid-Tex Direct (a) (b) (c) FY18 Projected Expense per Employee (1) 14,456 14,456 Number of Employees at End oft est Period (3) 1,23 1,698 Sub-Total (Ln 1 times Ln 3) 14,788,495 24,546,299 Test Year Medical and Dental Cost (3) 13,899,3 23,186,959 Medical and Dental Cost Adjustment (Ln 5 minus Ln 7) 889,372 1,359,34 Mid-Tex Allocation Factor (2} 43.55% 71.24% Allocated Medical and Dental Cost Adjustment (Ln 9 times Ln 11) 387, ,369 Labor Expense Factor (2) 8.15% 4.5% Test Year Medical and Dental Expense Adjustment (Ln 13 times Ln 15) 31, ,862 Adjustment Summary: Account ,429 Account ,862 Total (Ln 2 plus Ln 21) 31, ,862 Notes: 1. Costs are based on the projected Fiscal Year 218 expense_per employee. 2. Shared Services based on FY18 factors, adjusted to the four-factor formula including Operating lricome. Mid-Tex factors are based upon actual test year ratios. 3. SSU amounts exclude cost centers which do not allocate to Mid-Tex for rate making purposes. Total Adjustment (d) 31, , ,291 WP_F-2.2 Page 1 of 1

64 File Date: March 3,218 PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Shared Services Mid~Tex Direct No. Post~ Pension Employment Pension Description Account Plan Benefit Plan Account Plan (a) (b) (c) (d) Supplemental Executive Benefit Plan (e) Post~ Employment Benefit Plan (~ Adjustment Total (g) Fiscal Year 217 Willis Towers Watson Report as adjusted (1), (3) 5,4,862 2,864,1 8,234,627 O&M Expense Factor (2) 8.15% 8.15% 4.5% Fiscal Year 217 Actuarially Determined O&M Benefits (Ln 1 x Ln 2) 4,11,33 2,295,539 3,298,227 Allocation to Mid~Tex (2) 43.55% 43.55% 71.24% Mid~Tex Benefits Expense Included in Rates- Proposed (Ln 3 x Ln 4) 1,746,91 999,7 2,349,595 Mid~Tex Benefits Expense per prior 2 RRM Settlements (4) 1,84,665 1,28,991 2,166,11 Test Year Adjustment ( 5 minus 7) (57,755) (29,291) 183,584 Adjustment Summary: Account 922 (57,755) (29,291) Account ,584 Total (Ln plus Ln 13) mj55j (29,291) 183,584 Notes: 1. Studies not applicable to Mid-Tex or Shared Services are omitted. 2. Shared Services based on FY18 factors, adjusted to the four-factor formula including Operating Income. Mid-Tex factors are based upon actual test year ratios. 3. SSU amounts exclude cost centers which do not allocate to Mid-Tex for rate making purposes CY215 RRM used the FY216 Towers Watson actuarial reports. CY216 RRM used the FY217 Willis Towers Watson actuarial reports. 194, % 37,89 1.% 37,89 35,763 1,325 1,325 1,325 4,375, % 1,752, % 1,248,364 1,184,341 64,23 64,23 64,23 6,381,657 6,219, ,885 (87,47) 248, ,885 WP _F-2.3 Page 1 of 1

65 File Date: March 3, 218 PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL TEST YEAR ENDING DECEMBER 31, 217 No. Shared Services Post- Pension Employment Pension Description Account Plan Benefit Plan Account Plan (a) (b) (c) (d) MidwTex Direct Supplemental Executive Benefit Plan (e) Post- Employment Benefit Plan (fj Adjustment Total (g) I Fiscal Year 217 Willis Towers Watson Report, as adjusted 5,4,862 2,864,1 8,234,627 Allocation to Mid-Tex 43.55% 43.55% 71.24% Fiscal Year 217 Actuarial!y Determined Benefit Costs (Ln 1 x Ln 2) 2,179,61 1,247,315 5,866,194 O&M and Capital Allocation Factor 1.% 1.% 1.% Fiscal Year 217 Willis Towers Watson Benefit Costs To Approve {Excluding Removed Cost Centers) {Ln 3 x Ln 4) 2,179,61 1,247,315 5,866,194 Summary of Costs to Approve {1): O&M Expense Factor {WP _F-2.3, Ln 2) 8.15% 8.15% 4.5% Total Pension Account Plan 1,746,91 2,349,595 Total Post-Employment Benefit Plan 999,7 Total Supplemental Executive Benefit Plan Total {Ln 13 + Ln 14 + Ln 15) 1,746,91 999,7 2,349, ,941 4,375,142 1.% 71.24% 194,941 3,116,769 1.% 1.% 194,941 3,116, % 4.5% 1,248,364 37,89 37,89 1,248,364 Note: 1. Mid-Texis proposing that the fiscal year 217 Willis Towers Watson actuarial amounts shown on WP _F-2.3 and WP _F-2.3.1, be approved by the RRM Cities as the benchmark amounts to be used to calculate the regulatory asset or liability for future periods. The Company is requesting that the benchmark amount approved by the RRM Cities for future periods include only the expense amount. The amount attributable to capital would continue to be recorded to utility plant through the overhead process as described in the CAM.,64,82 4,96,55 2,248,64 37,89 6,381,657 WP _F Page 1 of 1

66 File Date: March 3, 218 PROPERTY INSURANCE ADJUSTMENT TEST YEAR ENDING DECEMBER 31,217 No. Description (a) Shared Services General Office (b) Shared Services Customer Support (c) Mid-Tex Direct (d) Total Adjustment (e) Premium Adjustment: Annual Premium- Current Policy (TME Mar 218) (1) (2) (3) 133,58 95,81 Less: Test Year Premium Amount 14,919 11,56 Subtotal (Ln 2 minus Ln 3) (7,861) (5,255) Allocation to Mid-Tex (4) 38.21% 52.13% Allocated Total Adjustment (Ln 4 times Ln 5) (3,4) (2,739) O&M Expense Factor (4) 24.63% 24.63% Premium Adjustment (Ln 6 times Ln 7) (74) (675) Summary by Account: Account 922 (74) (675) Account 924 Totals (Ln 11 plus Ln ) (74) (675) 2,73,149 2,89,561 (79,4) 1.% (79,4) 15.72% (,48) (,48) (,48) Notes: Annual premiums have been adjusted for CWIP allocation in compliance with GUO The Mid-Tex premium has been adjusted to remove the premium associated with Working Gas in Storage (WGIS) in 19 alignment with GUO Nos. 9869, 1 and 158 which moved other costs associated with WGIS to Atmos Pipeline- Texas The premium amounts include 4.85% tax per TEX. INS. CODE (a) Shared Services Bluefiame Premiums are recorded to Cost Center 1915; however, the Customer Support 22 Premium is allocated to Mid-Tex based on the Customer Support factor (see Cost Center ) as adjusted for 23 the 4-Factor method including Operating Income (see WP _F-2.7). Both premiums are capitalized based on the 24 Cost Center 1915 ratio. Mid-Tex factors are based upon actual test year ratios. (1,415) (,48) (13,895) WP _F-2.4 Page 1 of 1

67 File Date: March 3, 218 INJURIES AND DAMAGES ADJUSTMENT TEST YEAR ENDING DECEMBER 31,217 No. Description (a) FERC Account (b) Per Book Amortized Amount Amount (1) (c) {d) Adjustment Amount (e)- (d)-( c) 1 Mid-Tex: 2 Reserve for Irving 2 incident (1) 3 Reserve for Oak Cliff incident (2) 4 Reserve for North Richland Hills incident (3) 5 Reserve for Waxahachie incident (3) 6 Mid-Tex Total (Sum Ln 2 through Ln 5) 7 8 Total Injuries and Damages Adjustment- Account 925 (Ln 6) Notes: 1. The Irving 2 incident completed its 5 year amortization December 31, The Oak Cliff incident completes its 5 year amortization on October 31, Incidents are amortized over 5 years ,667 2, 2, 416, , ,667 WP _F-2.5 Page 1 of 1

68 File Date: March 3, 218 EMPLOYEE EXPENSE ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 No. Description (a) Shared Services Customer Shared Services - Support General Office (b) (c) Mid-Tex Direct (d) Total Adjustment (e) Twelve Months Ended December : 2 Employee Expense Adjustment (1) 3 Mid-Tex Allocation Factor (2) (3) 4 5 Allocated Employee Expense Totals (Ln 2 times Ln 3) 6 Expense Factor (2) (3) Total Employee Expense Adjustment, Calendar Year (Ln 5 times Ln 6) 8 9 Summary by Account 1 Account Account 93.2 Total (Ln 1 plus Ln 11) Notes: 52.13% 38.21% 86.3% 69.28% 1.% 1.% Shared Services -General Office amounts have been adjusted to remove amounts in cost centers which do not a!!ocate to Mid-Tex See WP _F-2.1, Col (b) and Col (c), Ln 7 and Ln 11, as applicable, for the Shared Services factors, as adjusted Mid-Tex costs are directly charged and not allocated. WP_F-2.6 Page 1 of 1

69 File Date: March 3, 218 SHARED SERVICES (SSU) SERVICE-LEVEL FACTORS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 FY18 FY18 Per Book SSU PerBookSSU Total Per Book Capitalization Capitalization Rate No. Description O&M {Labor} O&M (Non-Labor} SSU O&M Exp Rate (Labor Exp) (Non-Labor Ex~} 1 1 (b) (c) (d) (b)+ (c) (o) 1n Four-Factor Allocation Factor (1), (2) Total (g) (h)- (d). (g) ssu Allocated to Capital (3) (i) - sum(b*g*e) + sum(c*gf) Expense Allocated to Mid-Tex Gl- (h)- (i) 1 11 SS Dallas Executive Chairman (4) 684,773 1,67,879 2,355, % 75.37% SS Dallas Chief Financial Officer 3,79,99 (27,585) 2,872, % 75.37% 3 1 SS Dallas Utility Operations (5) 36,61 394,14 754, % 79.11% SS Dallas Audit 5,286,71 5,286,71.%.% SS Dallas Treasurer 293, ,44 59, % 77.48% SS Dallas Treasury 582,319 1,4,41 1,982, % 75.37% SS Dallas Risk Management 48,15 342,746 75,761 8.% 8.% o SS Dallas Procurement 17,354 11, , % 5.77% 9 11 SS Dallas Mail & Supply 2, , , % 17.34% SS Dallas Vice Pres & Controller 264,44 297, , % 3.75% SS Dallas Taxation 218,815 4, , % 1.62% 1117 SS Dallas Acctg Services 158, , , % 68.36% SS Dallas Supply Chain 42,73 288,58 78, % 46.51% SS Dallas General Accounting 435,67 247, , % 75.37% 15 1 SS Dallas Accounts Payable 44, , , % 35.19% SS Dallas Plant Accounting 579, , , % 91.2% SS Dallas Gas Accounting 277, , ,819.%.% SS Dallas Financial Reporting 822,31 728,55 1,55,356.%.% SS Dallas Payroll 343, ,411 6, % 75.37% 2 18 SS Dallas Property & Sales Tax 1,268,75 1,55,465 2,773, % 1.43% SS Dallas Income Tax 56, ,481 1,372,45 2.% 2.% SS Dallas Business Planning and Analysis 74,963 52,443 1,261, % 58.26% SS Dallas Media Relations 3,192 3,192.%.% SS Dallas Investor Relations (6) 481, ,55 1,223,11.%.% SS Dallas Communications 773,172 1,278,66 2,51,238.%.% SS Dallas IT 1,376,523 1,436,73 2,8, % 38.57% SS Dallas IT E&O, Corporate Systems 2,2,175 6,275,413 8,295, % 31.53% SS Dai-IT Engineering & Operations 3,627,13 11,975,374 15,62, % 34.75% SS Dallas Gas Purchase Accounting 51, ,548 7,821.%.% SS Dallas Rate Administration 66,357 28, ,252.%.% SS Dallas Revenue Accounting 243, ,857 42,497.%.% SS Dallas IT Enterprise Solutions 597,19 597,19.%.% SS Dallas Strategic Planning 413, ,111 1,29, % 56.94% SS Dallas Distribution Acctg 62,556 26, ,444.%.% 38.21% 9, % 1,97, % 363, % 2,2, % 225, % 757, % 286, % 84, % 191, % 214, % 236, % 161, % 273, % 261, % 276, % 349, % 214, % 592, % 234, % 1,59, % 524, % 481, % 1, % 467, % 783, % 1,74, % 3,169, % 5,961, % 338, % 454, % 22, % 228, % 393, % 416, , , , ,88 571,9 229,493 42,667 32,53 66,45 3,838 11,467 7, ,796 97, , ,476 15,14 1,488 28, , ,88 1,915, , ,684 27,314 76,23 2,2,52 5, ,589 57,373 41, ,45 148,73 232,744 51,14 146,329 64,37 179,279 3, , ,391 57,667 1,44,63 513,98 21,197 1, , ,778 66,168 2,246,864 4,46, , ,248 22, ,1 169, ,698 WP _F-2.7 Page 1 of3

70 File Date: March 3, 218 SHARED SERVICES (SSU) SERVICE-LEVEL FACTORS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 FY18 FY18 PerBookSSU PerBookSSU Total Per Book Capitalization Capitalization Rate No. Description O&M (Labor) O&M {Non-Labor~ SSU O&M Exp Rate (Labor Exp) (Non-Labor Exp) () (b) (o) (d)- (b)+ (c) (o) <D Four-Factor Allocation Factor (1),(2) Total (g) (h)- (d). (g) ssu Allocated to caeital (3) (i) = sum(b*g*e) + sum(c*g*f) Expense Allocated to Mid-Tex )- (h)- (i) SS Dallas Rates & Regulatory 1,546,72 1,241,668 2,787, % 75.37% SS Dallas Texas Gas Pipeline Accounting 5,77 44,21 169,287.%.% SS Dai-IT Customer Services Systems 2,159,928 4,731,14 6,89, % 27.56% SS CCC IT Support 2,26,718 2,26,718.%.% 3g 1159 SS Dallas VP of Workforce Development 46, , ,915.%.% SS Dallas Benefits and Payroll Accounting 375, ,28 5, % 75.37% SS Dallas IT Security 937,736 2,35,784 3,243,52 17.% 17.% SS Dallas IT Enterprise Architecture 448, ,985 63,64 2.% 6.% SS Regulatory Accounting Services 189,287 82, , % 75.37% 44 1 SS Dallas President and CEO (4) 1,48,153 3,214,819 4,262, % 75.37% 45 5 SS Dallas SVP Safety and Enterprise Services 31, ,31 717,9 22.7% 27.3% 46 9 SS Dallas Safety & Compliance 681,152 96,916 1,588, % 1.43% 47 SS CSC-Customer Contact Management 14,351,35 8,4,317 22,355, % 19.55% SS Dispatch Operations 4,53,288 1,775,898 6,36,186.%.% SS Dallas CSO Training & Knowledge Mgmt 488,94 221,57 71,448.%.% 5 21 SS Pipeline Administration (5) 117,55 476, ,619.%.% SS Dallas CSO Human Resources 477, , ,141.%.% SS Dallas Customer Service 1,117,95 1,637,534 2,754, % 14.79% SS Dallas Business Processes & Change Management 1,69,691 1,285,165 2,894, % 17.67% SS Dallas Customer Revenue Management 2,861,575 2,38,6 4,899,581.%.% SS Dallas Pipeline Safety 534,9 699,118 1,234, % 48.33% SS Dallas Employment & Employee Relations 591, ,625 1,11,66.%.% SS Dallas Executive Compensation 393, ,733.%.% SS Dallas Human Resources -Vice Pres 713, ,394 1,393,227.%.% SS Dallas Compensation & Benefits 613,38 642,6 1,255,98.%.% SS Dallas Facilities 554, ,563 1,57, % 31.67% SS Dallas Employee Development 83,1 97,814 1,773,926.%.% SS Tech Training Delivery 924,489 1,434,837 2,359,326.%.% SS Tech Training Prog & Curriculum 486, , ,567.%.% SS Dallas Compensation and HRMS 828, ,957 1,247,941.%.% SS Dallas Corporate Programs (5) 36,943 42,991 79,934.%.% SS Dallas EAPC 56,87 56,87.%.% SS HR Benefit Variance 148, , % 17.34% SS Corporate legal 4,816,766 2,242,895 7,59, % 52.29% SS Corporate Secretary 1,496,62 1,496,62.%.% SS Corporate Governmental Affairs 372, , ,878.%.% SS Corporate Records Management 241,14 49,36 731, % 75.37% 38.6% 1,76,68.% 52.13% 3,592, % 1,15, % 38, % 195, % 1,239, % 243, % 14, % 1,628, % 273, % 6, % 11,654, % 3,287, % 37,356.% 52.13% 37, % 1,435, % 1,117, % 2,554, % 476, % 424, % 15, % 532, % 479, % 575, % 677, % 91,7 38.6% 257, % 476, % 3, % 21, % 56, % 2,697, % 571, % 33, % 282, ,43 84, ,59 21,689 76,781 78,965 1,227,74 68,327 8,757 2,277, ,16 11,45 23, ,376 9,867 1,41,58 2,81 265,25 2,787,317 1,15,362 38,539 48,21 1,28,66 166,632 25,83 41,177 25,642 64,237 9,376,31 3,287,415 37,356 37,718 1,296,883 1,7,369 2,554, ,17 424,156 15, , , , ,817 91,7 257, ,838 3,543 21,73 47,34 1,286, ,858 33,349 69,537 WPJ-2.7 Page 2 of 3

71 File Date: March 3, 218 SHARED SERVICES (SSU) SERVICE-LEVEL FACTORS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 No. Description () PerBookSSU O&M (Labor) (b) Per BookSSU O&M (Non-Labor) (c) Total Per Book SSU O&M Exp (d)= (b)+ (c) FY1S Capitalization Rate (Labor Exp) (c) Four-Factor FY1 S Allocation SSU Capitalization Rate Factor Allocated to (Non-Labor Exp) (1), (2) Total Capital (3) (f) (g) (h)= (d)* (g) (i) = sum(b*g*e) + sum(c*g*f) Expense Allocated to Mid-Tex (j) =(h). (i) SS Corporate Gas Contract Administration SS Corporate Energy Assistance SS Gas Supply Executive SS Dallas-Regional Gas Supply SS Dallas Gas Contract Admin SS Franklin-Gas Control & Storage SS New Orleans Gas Supply & Service SS Regional Supply Planning SS Jackson-West Region Gas Supply & Services SS Franklin-East Region Gas Supply & Services SS Dallas Gas Supply SS Dallas-Corporate Gas Supply Risk Mgmt SS Franklin Gas Control SS TBS-System Support SS TBS-Application Support SS TBS-Technical Support SS TBS-Transportation & Scheduling SS Dallas Employee Relocation Exp (Div 2) (1) SS Dallas Employee Relocation Exp (Div ) (1) SS Dallas Controller- Miscellaneous (8) SS Dallas Performance Plan (6) SS Outside Director Retirement Cost SS Dallas SEBP (6) o SS Dallas Overhead Capitalized (3) SS Dallas Fleet and Corporate Sourcing SS Dallas Insurance SS Dallas Enterprise Team Meeting SS Dallas Culture Council 132, ,153 35,1 272, , , , ,743 81,39 36,57 115,81 881,83 254, , , ,448 41,383 25,798 55,659 68,76 417,972 52, , ,898 24,9 328, ,388 7,699 49,4 171,639 16, ,97 159,589 34,68 2,58 83,1 428,653 8,637 13,451,32 3,51,977 1,814,64 (63,311,95) 254,3 19,619,57 69, ,48 873,4 87,273 46, , , ,98 641, ,9 49,4 532, ,552 1,499, ,63 1,114,35 65, ,449 83,36 34,435 13,451,32 3,51,977 1,814,64 (63,311,95) 84,782 19,619,57 69, %.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.% 32.3%.%.%.% 54.8%.%.%.%.% 38.6%.% 48.26%.% 38.45%.% 83.2%.% 48.26%.%.%.% 48.26%.% 48.26%.%.%.%.%.% 1.%.% 48.26%.%.%.% 38.45%.% 38.45%.% 38.45%.% 38.45%.% 38.21%.% 52.13%.%.% 32.3% 38.21%.% 38.21% 75.37% 38.21%.% 41.35% 54.8% 38.6% 75.37% 38.21%.% 38.21%.% 38.21% 77, ,37 334,62 337, , ,98 39,41 532,146 17,43 159,27 428,45 25,67 114, ,157 17,951 5, ,338,16 4,132,26 31,646 7,496,614 26, ,66,139 3,114, ,983 5,65,274 77, ,37 334,62 337, , ,98 39,41 532,146 17,43 159,27 428,45 25,67 114, ,157 17,951 3,479,61 1,338,16 1,17, ,663 1,846,34 26, TOTAL (Sum Ln 1 through Ln 99) 74,765,885 71,997, ,763,782 86, ~6,324,368-6,542, Allocated Shared Services O&M to Mid-Tex Division Total Adjustment to Account 922 (Ln 1 minus Ln ) Notes: Factors are displayed only if applicable to Mid-Tex. 63,434,369 (2,891,982) Based on FY18 factors, adjusted to the four-factor formula including Operating Income The Total represents the amount that would be credited from Cost Center Cost Centers 11 and 1 have been renamed Cost Centers 1,21 and 1417 have been added since the last RRM. The costs in 1417 were formerly in Cost Center 1159, Cost Centers 13 and 14 have been deactivated since the last RRM. 1 These costs are now included in Cost Center Allocation percentages have been set to zero to align with GUD 117 for cost centers 1132, 194 and Cost center 191 expenses have been divided between General Office (Div 2) and Customer Support (Div ) and separately allocated The entire per book amount of (1,586,9) in Cost Center 193 was not allocated during the test period. WP _F-2.7 Page 3 of3

72 File Date: March 3,218 SHARED SERVICES {SSU) COST CENTER FUNCTIONS TEST YEAR ENDING DECEMBER 31, 217 No. Division (1) (4) Cost Center/Description ) Cost Center Function (o) [ _, ss D SS I Chief.11!iillY Audit Dallas Gas Accounting SS Dallas t 1132 SS Dallas Investor Relations d witll the VP, Treasurer who manages Treasury, I qneedsoftllec dwitllr rt of General Accounting,, e accountinq. l. utility rate, g and Payroll 1, ano 1 exes ana The Treasurer _.. jated wh:h communicating customer service and safety messages to the media, business and Industry leaders. Costs associated wltll ctis.ls communications functions including training staff on media relations, interviews, press conferences, and press queries to better inform the public end our customers in a crisis. Costs associated with video creation and dissemination to the public to educate customers and stakeholders on the environmental and safe I and reliable benefits of natural qas Performs a number of sl~niflcant actlvities directly related to attractin~ capital investment and maintainin~ important relationships wltll the investing communitv. Such activities include. but are not limited to: 1.) Accompanying executive management at all discussions with the Investing public and financial press to maintain compliance with SEC Re~ulation FD, applicable to all publicly trade companies. 2.) Initiating, building and maintaining relationships with the financial analyst community and individual investors, as well as serving as tlle first point of contact between the Company and institutional and individual investors. 3.) Preparing and presenting financial presentations throughout the year as needed and overseeing the issuance of financial press releases at least four times per vear to report and explain the financial performance of the Companv. 4.) Keeping executive management apprised of investor opinions and concerns. 5.) Reviewing research reports submitted by analysts and providing accurate feedback to foster reporting accuracy. 6.) Maintaining knowledge of other companies that are considered to be Atmos Energys peers. 7.) Providi11g ma11agement and the Companys Board of Directors wttl11nformation regarding developments in the financial markets and perceptions of investors that may have use in formulating the Companys lo11g and short-term practices a11d policies. 8.) Serving on tlle Companys 7-member Fina11ciallnformation Committee to review all SEC filings to ensure appropriate and accurate disclosures are made. 9.) Prepare and provide all operating divisions, treasurer, risk management, and all SSU departments with a comprehensive presentation explaining tl1e strategy, financial performance, rate a11d regulatory strategy, etc. to use as a communication tool for all stakeholders. 1.) Overseeing the Stock Transfer Agenfs administration of tlle Compa11ys Direct Stock Purchase Plan and Dividend Reinvestment Plan, as well as 11goinq plan redesign to ensure best practices. Providing investors with reliable, comprehensive information about the Company Is a critical step in attracting equity i11vestment capital This information may be especially important in attracting non-institutional equity investors who do not have access to tl1e range of analysts reports, and attracting such investme11t has both near-term and longer-term direct benefits to the Company. The near-term benefits result from rising equity prices, which immediately translate to lower cost common equity, and ultimately ratemaking benefits through lower rates. For example, increased investment and higher equity prices lowers the yield calculation, as shown ill the common Discounted Cash Flow formulation of tlle cost of capital. In a similar vein, the lo11ger-term benefits derive from providing lower cost equity to maintain and ex and the utili! s stem SS Dallas Communications Costs associated with internal and external co orate communications illcluding the annual report to shareholders SS Dallas IT Costs associated with tlle VP. CIO who mana es all IT functions and the direct re arts to the CIO SS Dallas IT E&O. Corporate Systems Costs associated with the maintenance and suooort of the Com an s information s stems software) WP_F Page1 of5

73 File Date: March 3, 218 ATMOS ENERGY CORP., MIO-TEX DIVISION SHARED SERVICES (SSU) COST CENTER FUNCTIONS TEST YEAR ENDING DECEMBER 31, 217 No. Division (1) Cost Center/Description Cost Center Function (a) (b) SS Del-IT Engineering & Operations 1141 SS Dallas Gas Purchase Accountin 1144 SS Dallas Rate Administration 1145 SS Dallas Revenue Accountin 1146 SS Dallas IT Enterprise Solutions 115 SS Dallas Strategic Planning 1153 SS Dallas Distribution Acct 1154 SS Dallas Rates & Regulatory 1155 SS Dallas Texas Gas Pi elineacct 1156 SS Dai-IT Customer Services Systems 1158 SSCCCITSupport 1159 SS Dallas VP of Workforce Development 1161 SS Dallas Benefits & Pa roll Ace! 1164 SS Dallas IT Security 1167 SS Del-IT Enterprise Architecture 1171 SS Dallas Regulatory Accounting 1 SS Dallas President and CEO 5 SS Dallas SVP Safe! and Enterprise Services 9 SS Dallas Safetv & Compliance SS CSC-Customer Contact Mana ement 15 SS Dispatch Operations 16 SS Dallas CSO Trainin & Knowledoe M mt 21 SS Pipeline Administration 24 SS Dallas CSO Human Resources 26 SS Dallas Customer Service 27 SS Dallas Business Processes and Change Manaoement 28 SS Dallas Customer Revenue Management,,, Costs associated with the maintenance and support of the Companys data center. Operational services include- IT Systems and network engineering Service desk Desktop support Hardware and software maintenance for infrastructure items Support and administration of our database and SAP Basis environments The IT Qualiti an e ltestinal orocesses Costs associated with the accountin for the utili s distribution as urchases. Costs associated with filin PGA tariffs and recoverin as costs Costs associated with the accountin for the utili s distribution ross mar in. Non-capitalizable costs associated with capital projects or SaaS projects. Includes contractor expenses and software maintenance. Costs associated wlth the VP, Stretegic Planning who manages Business Planning & Analysis and Rates & Re ulatorv Affairs. Costs associated with the accountin for the utilitvs distribution revenues. Costs associated with rate case and regulatory work. Purpose is to manage the Companys rate strategy for regulated rates as well as the rate and regulatory activity for Atmos eight state operating area. The primary activity is the establishment of base rates til rough rate cases or formula ratemaking mechanisms. The department currently has approximately twenty base rate case filings or formula mechanisms to manage in order to effect rate changes in its various jurisdictions as well as montilly, quarterly and annual reports to meet reporting reouirements. Costs associated witil accountin for the Texas and louisiana as i eline s stems. Costs associated with developing and supporting Customer Service technologies. Also includes development and support of the interfaces between our Internal systems and external vendors; and support and administration of our business intelliqence I reportinq environment Costs Include labor software maintenance and related exoenses. Costs associated wltil supporting tile IT activities in the Customer Contact Centers. Supports both the Amarillo and Waco customer contact centers, providing telephone and IT support for our contact centers. Costs in this center include hardware maintenance and software maintenance for call center equipment and software, and telephone access char es not Ton distance. Costs associated witl1 the VP Workforce Development who oversees technical training and employee development activities across the enterprise. Costs associated witil mana ement of a roll and benefits de artments Costs associated witl1 providing the strategic direction for Cyber Security in the organization. Also includes the costs related to providing telecommunications to the corporate office (lines, equipment, etc.), network operations center and security administration Costs associated wltil selling the strategic architecture for our information systems and infrastructure. Also Includes the ProTect Manaoement function. Costs associated witl1 regulatory accounting work on rate cases, special projects and other Commission requests as well as regulatory reporting to utility commissions, government and industry groups. This cost center was created to clearly identify personnel who devote tilelr time to working on the regulatory accounting and reporting side of tile business on rate cases, special projects, commission annual reports and other commission requests such as documentinothe Comoariv s cost allocation methodolooies. Costs associated witil the CEO Costs associated wrth the SVP Safetv and Enterprise Services. Costs associated witl1 safetv com lienee and securi Costs associated with both the Waco and Amarillo Customer Support Centers. Service Orders to Service techs for emergency calls and same day service. To alert first responders of emergency situations and to communicate service order information to the approximately 75 service technicians throughout the regulated divisions. Costs in this center Include the labor and related expenses to staff tile dispatch function twentyfour hours a dav as well as buildin maintenance and telecom costs. Cost associated wllh tl1e train in of CSO emolovees. This cost center includes employees who work on the pipeline administration function who primarily serve our louisiana industrial gas customers. These costs are primarily directly charged to TlGP (Trans louisiana Gas Pipeline) and AELIG (Atmos Energy louisiana Industrial Gas). The costs in this cost center do not get allocated to the utilitv companies or APT. Costs associated with Human Resources in the Customer Service anization. Costs of management and administration of customer service organization (revenue management, customer contact and program development). Includes overall CSO management and administration (excluding Human Resources which is included in CC24) and Regulated Operations initiatives. CSO management provides support to the contact centers as well as other CSO departments Define and implement business solutions and help employees understand, prepare for, and act on changes necessary to operate our business exceotionall well Costs associated with managing customer revenue functions of billing, payment applications and collections. This center provides day-to-day support and transaction processing for customers in all states served by Almas. Also includes tl1e outside vendor costs of bill orintino. acceotino oavments and collection aoencv fees. WP _F Page 2 of 5

74 File Date: March 3, 218 ATMOS ENERGY CORP., M!D-TEX DIVISION SHARED SERVICES (SSU) COST CENTER FUNCTIONS TEST YEAR ENDING DECEMBER 31, 217 line No. Division (1) Cost Center/Descriptiol1,,, (b) Cost Center Function (o) or participa11t both customer of HR employee pay plans that are Costs chargee! to this cost center include association dues and contract labor SS Dallas EAPC