Re: Atmos Energy Corporation's 2019 Dallas Annual Rate Review Mechanism Filing

Transcription

1 energy Chris A. Felan Vice President Rates & Regulatory Affairs January 15,19 Mr. Nick Fehrenbach City of Dallas 15 Marilla Street, Room FN Dallas, Texas 751 Re: Atmos Energy Corporation's 19 Dallas Annual Rate Review Mechanism Filing Dear Mr. Fehrenbach, Enclosed for filing is Atmos Energy Corporation, Mid-Tex Division's ("Atrnos Energy" or "the Company") first filing under the new Rider DARR- Dallas Annual Rate Review Mechanism tariff. We are providing two printed copies, along with flash drives. f you desire additional printed copies, please let me know. This DARR filing represents a requested increase in annual revenue of $1.1 million for the City of Dallas. This represents a monthly increase of.97% or $3.5 for the average residential customer. Enclosed as part of the filing are the following documents (provided as printed copies and on flash drives): Table of Contents; Affidavit of Filing; Tariffs; Notice; Cost of Service - Schedules and Workpapers; Billing Determinants Study; and, Relied Upons (provided only on flash drives). The documents and schedules provided in this filing closely align with the documents and schedules prepared in GUD No. 989 as clarified by GUD No. 158 to allow for ease of comparison and review. We have included updated tariffs in the filing for Rates R, C, and T, and Riders WNA and SUR. We have included the customer notice for the change in Rates Rand C and Rates and T. Atmos Energy Corporation 5 LBJ Freeway, Suite 18 Dallas, TX 75 P F 1-- Christopher.Felan@atmosenergy.com

2 We stand ready to respond with any information that you may need to facilitate your review of the filing and would also welcome the opportunity to meet with you to discuss any questions. Our goal is to reach a mutual agreement that fairly balances the needs of the Company and its customers. To that end, look forward to discussing the filing with you and reaching an agreement that implements the necessary change in rates in a cost effective and efficient manner. Sincerely, Chris A. Felan Enclosures: DARR Filing Package ( copies) Flash Drives cc: Norman J. Gordon, Mounce, Green, Myers, Safi & Galatzan Garry J. Garrett, Garrett Group LLC Atmos Energy Corporation 5 LBJ Freeway, Suite 18 Dallas, TX 75 P F 1-- Christopher.Felan@atmosenergy.com

3 Atmos Energy Corporation- Mid-Tex Division Executive Summary 19 DARR Filing January 15, 19 ~ Since 11, Atmos Energy Corporation- Mid-Tex Division has submitted a filing to the City of Dallas under the Dallas Annual Rate Review (DARR), which is a systematic process specifying how rates will be set over a specified period of time. Atmos Energy has invested over $55 million in the City of Dallas, and about 8 percent of that investment has been dedicated to increasing safety and reliability. ~ According to state law, natural gas companies may recover reasonable and necessary costs and earn a reasonable return through the rates charged to customers. ~ Based on decades oflegal precedent, the DARR process: o Provides full transparency and allows the City of Dallas to closely examine our spending every year, keeping us accountable; o Defines ratemaking principles, cost exclusions for rate recovery and rate design limitations; o Avoids unnecessary and repetitive litigation, which would result in additional costs ultimately absorbed by customers; o Gives the company a predictable regulatory environment, which is necessary to attract capital to be invested in system replacement. ~ Atmos Energy submitted the DARR filing to the City of Dallas on january 15: o ncludes a requested increase in annual revenue of approximately $1.1 million for the months ending September 3, 18. o Supports investment of over $119 million within the City of Dallas. Overall the filing supports more than $5 million of total capital investment made in the Mid-Tex system with over $33 million spent on improving system safety and reliability. o ncludes a listing of all projects completed within the test year. ~ The above efforts have allowed Atmos Energy to replace a significant portion of our infrastructure. Below is what has been accomplished within the City of Dallas. CTY OF DALLAS From 11 through 17.~. Within Calendar Year o 3 miles of distribution pipe replaced o 88 miles of distribution pipe replaced 7 miles of steel 7 miles of steel 1 miles of cast iron miles of cast iron miles of vintage plastic 1 mile of vintage plastic o Over 7, steel service lines replaced o Over 8, steel service lines replaced

4 ~ New costs included in the filing: o Gas plumbing replacements totaling $.1 million for homes affected in the planned outage House plumbing costs are normally the customer's responsibility, but we paid to fix customer piping issues in order to enhance safety and restore service weeks sooner than would have otherwise been possible To minimize customer impact, we propose to spread recovery of this cost over three years ~ Recoverable costs that were voluntarily excluded from the request: o We voluntarily removed $ million of customer assistance costs associated with the planned outage, including: Financial assistance such as cash disbursements and retail gift cards Lodging, meals and rent assistance Claim disbursements o City of Dallas services including fire department and police support, among others o Security services to support customer information centers ~ Atmos Energy customers in the City of Dallas will see the following changes to their bill: o The average residential customer using 5.9 cubic feet of gas (Ccf) per month will see an increase of $3.5/month, an overall increase of.97% o The average commercial customer using 5.5 Ccf per month will see an increase of $9.7/month, an overall increase of.7% o The average industrial and transportation customers using 7,55 million British thermal units (MMBtu) per month will see an increase of $.39, an overall increase of 3.% for industrial customers and.3% for transportation customers. ~ Low natural gas prices allow us to increase our pace of pipe replacement with minimal impact to our residential customers' bills. Since 8, the average customer's monthly bill has changed from $ to $ as proposed in this filing. ~ What is next? o The city will thoroughly review the filing to confirm that our rates are calculated correctly and adhere to state law. o Atmos Energy will review the city's conclusions and work to determine final rates which will be implemented on june 1, 19.

5 ATMOS ENERGY CORPORATON, MD-TEX DVSON DALLAS ANNUAL RATE REVEW MECHANSM TABLE OF CONTENTS Cover Letter Executive Summary Table of Contents Affidavit Exhibit A -Narrative of Changes Tariffs Notice Rate R - Residential Sales Rate C - Commercial Sales Rate - ndustrial Sales Rate T - Transportation Rider WNA- Weather Normalization Adjustment Rider SUR - Surcharges Residential and Commercial ndustrial and Transportation Cost of Service (COS) Billing Determinants Study (BDS) 989 Methodology Relied Upons and Supplemental Data (Only provided via Flash Drives)

6 ATMOS ENERGY CORP., MD-TEX DVSON DALLAS ANNUAL RATE REVEW MECHANSM BEFORE THE RESPECTVE GOVERNNG BODY OF THE ATMOS ENERGY CORP., MD-TEXDVSON, CTY OF DALLAS AFFDAVT OF CHRSTOPHER A. FELAN Before me, the undersigned authority, on this date personally appeared Christopher A. Felan, known to me to be the person whose name is subscribed below, and being by me first duly sworn, stated upon oath as follows: 1. "My name is Christopher A. Felan. am over eighteen years of age and not disqualified from making this Affidavit.". " am the Vice-President of Rates and Regulatory Affairs for Atmos Energy Corporation's Mid-Tex Division and as such am an Officer in the Mid-Tex Division. have over years business experience and 1 plus years of experience in the natural gas utility industry. am fully competent to make this attestation, and each statement of fact herein is true of my own personal knowledge, information and belief." 3. " affirm that the schedules filed by the Company in this Dallas Annual Rate Review Mechanism filing comply with the provisions of the Dallas Annual Rate Review Mechanism tariff and are true and correct to the best of my own personal mowledge, information and belief.". " have attached to this Affidavit as Exhibit A, a brief narrative explanation describing certain notable differences between the information reflected in this year's DARR filing and the Company's 17 Statement of ntent filing." Christopher A. Felan SWORN AND SUBSCRBED before me this the, ( ti:l day of January, 19. STACY A HUGHES Notary 1 # 1813 My Commission Expires January, 1

7 EXHBT A Narrative of Changes The Company's first ])alias Annual Rate Review ("DARR") filing under the new Rider DARR tariff approved by the City of Dallas in Ordinance 3777 is for the twelve () month period ending September 3, 18. The filing package reflects a system-wide cost of service increase in the amount of$3,718,5. Of this amount, $1,85,81 is attributable to the City of Dallas inclusive of rate case expenses from the 17 Statement oflntent. The notable differences between the Company's last Statement of ntent filing and this DARR filing are highlighted below: The components of Accumulated Deferred ncome Taxes ("ADT"), both assets and liabilities, are detailed and included in the filing on WP _ B-. Changes in the components of ADT include a regulatory gross-up related to the Tax Cut and Jobs Act. The Company has recorded a Regulatory Liability representing the excess deferred income taxes resulting from the revaluation of ADT due to the Tax Cut and Jobs Act. The Company has reduced the Proposed Cost of Service for the first year of Amortization of the Liability inclusive of Revenue Related Taxes. Shared Services Division ("SSU") allocation rates have been updated to fiscal year 19 factors as per the tariff. A Regulatory Asset related to Pension and OPEB expenses as a result of the Company's compliance with Section 1.59 of the Texas Utilities Code and recorded through September 3, 18 is included on WP_B-7 through WP_B-7.1. The amortization of this asset is included on WP _F-.8. The Company is proposing to change the Benchmark for Pension and OPEB costs as presented on WP _F-.3.1 for the City's approval with their ordinance to the Fiscal Year 18 Willis Towers Watson Actuarial Report Amounts. The SSU Service Level Factors Adjustment is detailed in the Cost of Service filing on WP _F-.7. WP _F-.7.1 in the filing details the function of each cost center. Primary changes to SSU Cost Centers ("CC") since the 17 Statement of ntent Filing are summarized below: 1. CC that is new is 117. The costs in this center were formerly recorded to CC CCs 13 and 1 are no longer active. Their costs are now being recorded in cc. Federal ncome Taxes are calculated based on a 1% tax rate per the change in rate due to the Tax Cut and Jobs Act which went into effect on January 1, 18.

8 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: R - RESDENTAL SALES Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE: Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Customer Charge per Bill Commodity Charge -All Ccf Amount $ 1.5 per rnonth $. 19 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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service.

9 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: C - COMMERCAL SALES Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to ndustrial 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 Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount. Customer Charge per Bill Commodity Charge- All Ccf $ 5.5 per month $.89 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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service.

10 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: 1- NDUSTRAL SALES Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Application Applicable to ndustrial 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 ndustrial Customers with an MDU equal to or greater than 3,5 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge. Amount Customer Charge per Meter First MMBtu to 1,5 MMBtu Next 3,5 MMBtu All MMBtu over 5, MMBtu $ per month $.15 per MMBtu $.171 per MMBtu $.77 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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company % 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 ndex n 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 An Agreement for Gas Service may be required.

11 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: 1- NDUSTRAL SALES Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions n order to receive service under Rate, 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 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: T- TRANSPORTATON Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 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 Customer's agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Charge. Amount Customer Charge per Meter First MMBtu to 1,5 MMBtu Next 3,5 MMBtu All MMBtu over 5, MMBtu $ per month $.15 per MMBtu $.171 per MMBtu $.77 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. Franchise Fees are to be assessed solely to customers within municipal limits. This does not apply to Environs Customers. 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). mbalance 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 mbalance 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 Customer's monthly Cumulative mbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 1% of Customer's receipt quantities for the month.

13 MD-TEX DVSON ATMOS ENERGY CORPORATON RRC Tariff No: RATE SCHEDULE: APPLCABLE TO: T- TRANSPORTATON Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company % 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 ndex n the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions n 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 MD-TEX DVSON ATMOS ENERGY CORPORATON RDER: APPLCABLE TO: WNA- WEATHER NORMALZATON ADJUSTMENT Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Provisions for Adjustment The base rate 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 regional weather station is Dallas. 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 (NDD-ADD) (BLi + (HSFi x ADD) ) Where = WNAFi = Ri = HSFi = NDD = 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 base rate of temperature sensitive sales for the ith schedule or classification utilized by the Commission in the Relevant Rate Order. heat sensitive factor for the ith schedule or classification divided by the average bill count in that class billing cycle normal 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 q 11 Where q 1 ; is the relevant sales quantity for the jth customer in ith rate schedule.

15 MD-TEX DVSON ATMOS ENERGY CORPORATON RDER: APPLCABLE TO: WNA- WEATHER NORMALZATON ADJUSTMENT Customers within the City of Dallas EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE Base Use/Heat Use Factors Weather Station Residential Base use Ccf Heat use Ccf/HDD Commercial Base use Ccf Heat use Ccf/HDD Dallas

16 MD-TEX DVSON ATMOS ENERGY CORPORATON RDER: APPLCABLE TO: SUR- SURCHARGES Entire Division EFFECTVE DATE: Bills Rendered on or after /1/19 PAGE: Application Applicable to customer classes as authorized by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute, ordinance, order, rule, contract, or agreement. Monthly Calculation Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract, or agreement. The following negative surcharge as authorized by city regulators shall be credited to affected customer's bills in the form of a one-time monthly bill credit no later than the first billing cycle of June 19 as follows: Rate Schedule City of Dallas R - Residential Sales $(.8) C - Commercial Sales $(7 57)

17 PUBLC NOTCE OF PROPOSED RATE CHANGE NATURAL GAS UTLTY RATES f you are receiving this notice, you are a customer of Atmos Energy Corporation, Mid-Tex Division ("Atmos Energy" or "the Company") and a change to your gas rates has been requested. On January 15, 19, Atmos Energy filed the Dallas Annual Rate Review to change gas rates and implement a new schedule of rates and riders applicable to all customers within the City of Dallas served by the Mid-Tex Division (hereafter "City of Dallas"). The proposed effective date of the requested rate changes is June 1, 19. f approved, the proposed changes will affect approximately 7,7 residential,,35 commercial, and 1 industrial and transportation customers. f approved, the proposed rates will change the Company's annual revenues for the City of Dallas of the Mid-Tex Division by$ 1,85,81 or.3%, including gas costs, or 9.87% excluding gas cost. The proposed change in rates constitutes a "major change" as that term is defined by Section 1.11 of the Texas Utilities Code. The Company proposes to implement the rates included in Table below: TABLE 1 - Proposed Rate Changes for City of Dallas Customers Current Proposed Number of Current Proposed Volumetric Volumetric Customer Customers Customer Customer Charge Charge Class Affected Charge Charge (Per Ccf) (Per Ccf) Residential 7,7 $. $1.5 $. $.19 Commercial,35 $ 1.5 $5.5 $.77 $.89 PerMMBtu PerMMBtu ndustrial & Transportation 1 $7.75 $ &T First 1,5 MMBtu $.9 $.15 &T Next 3,5 MMBtu $.15 $.171 &T Over 5, MMBtu $. $.77 TABLE - mpac t on A verage B'll l Current Proposed Average Average Percentage Customer Class Monthly Monthly Proposed Change Percentage (Average Monthly Bill with Bill with Monthly with Gas Change without Usage Ccf) Gas Cost Gas Cost Change Cost Gas Cost Residential (5.9) $ 1.38 $.3 $ % 1.7% Commercial (5.5) $ 35.8 $ 3.5 $ 9.7.7% 11.1% PerMMBtu ndustrial (7,55) $7,35. $7,59.85 $.39 3.%.9% Transportation (7,55) $5,17.8 $5,37.5 $.39.3%.9% The above calculations in Table 1 and Table are based on a $.85 per Ccf cost of gas for Residential and Commercial customers and $.893 per MMBtu cost of gas for ndustrial customers.

18 n addition to the rate changes in the Company's residential, commercial, industrial and transportation rate schedules (Rates R, C, and T), the other proposed tariff change is an update to its Rider WNA. Atrnos Energy proposes to modify its Rider WNA to update the heat load and base load factors. Persons who live in the City of Dallas with specific questions or desiring additional information about this filing may contact Atmos Energy Corporation at Complete copies of the filed Dallas Annual Rate Review, including all proposed rates and schedule changes, are available for inspection at Atrnos Energy's offices located at 5 LBJ Freeway, Suite 1, Dallas, Texas 75 or on our website Persons who live in the City of Dallas and who wish to contact the regulatory authority having jurisdiction over the filing should contact the City of Dallas. Este aviso es para informar a los clientes de Atmos Energy Corporation, division de Mid-Tex ("Atmos Energy" o "!a Compafiia") que!a Compafiia ha enviado una solicitud para aurnentar las tarifas del servicio publico de gas. Este aurnento en las tarifas afecta a todos los clientes residenciales, comerciales, industriales y de transporte dentro de!a Ciudad de Dallas. Las personas que deseen hacer preguntas especificas o recibir mas informacion sobre!a solicitud para aurnentar las tarifas deben comunicarse con Atmos Energy Corporation a! Ademas, los clientes afectados por esta solicitud que deseen enviar comentarios o una carta de protesta a!a autoridad reguladora sobre esta solicitud deben comunicarse con!a Ciudad de Dallas. Consulte!a Revision de!a tasa anual de Dallas 19.

19 ATMOS ENERGY CORP., MD-TEX DVSON DALLAS ANNUAL RATE REVEW TEST YEAR ENDNG SEPTEMBER 3, 18 Totals may vary due to rounding.

20 ATMOS ENERGY CORP., MD-TEX DVSON TABLE OF CONTENTS TEST YEAR ENDNG SEPTEMBER 3, 18 LNE NO. DESCRPTON SCHEDULE REVENUE REQUREMENTS BY SERVCE CLASS REVENUE REQUREMENTS 3 RATE BASE COMPONENTS OF RATE BASE- GROSS PLANT 5 COMPONENTS OF RATE BASE- ACCUMULATED DEPRECATON CASH WORKNG CAPTAL 7 OPERATON AND MANTENANCE EXPENSES 8 ADJUSTMENTS TO OPERATON AND MANTENANCE EXPENSES 9 DEPRECATON AND AMORTZATON EXPENSE 1 DEPRECATON RATE SUMMARY 11 TAXES OTHER THAN NCOME TAX- ACCOUNT 8.1 FEDERAL NCOME TAX AND STATE FRANCHSE ("GROSS MARGN") TAX 13 NTEREST EXPENSE- CUSTOMER DEPOSTS 1 SUMMARY OF RETURN 15 CALCULATON OF RDER GCR PART A 1 CALCULATON OF RDER GCR PART B 17 SUMMARY OF CURRENT AND PROPOSED RATE STRUCTURE- BASE RATES Schedule A Page 1 Schedule A Page Schedule B Schedule C Schedule Schedule E Schedule F-1 Schedule F- Schedule F-3 Schedule F- Schedule F-5 Schedule F- Schedule F-7 Schedule G Schedule H Schedule Schedule J Table of Contents Page 1 of3

21 ATMOS ENERGY CORP., MD-TEX DVSON TABLE OF CONTENTS TEST YEAR ENDNG SEPTEMBER 3, 18 LNE NO. DESCRPTON WORKPAPER RATE BASE ADJUSTMENTS GUO 97 RATE BASE ADJUSTMENTS 3 GUD 97 RATE BASE ADJUSTMENTS- AMORTZATON SCHEDULE GUD 989 RATE BASE ADJUSTMENTS- AMORTZATON SCHEDULE 5 GUD 117 RATE BASE ADJUSTMENTS- AMORTZATON SCHEDULE NJURES AND DAMAGES AND WORKERS COMP RESERVES (1) 7 MATERALS & SUPPLES-ACCOUNTS 15 & 13 8 PREPAYMENTS-ACCOUNT 15 9 CUSTOMER DEPOSTS AND CUSTOMER ADVANCES FOR CONSTRUCTON 1 ACCUMULATED DEFERRED NCOME TAXES-ACCOUNTS 19/8/83 (1) 11 AMORTZATON OF REGULATORY LABLTY MDPONT OF REGULATORY LABLTY 13 PENSON AND OTHER POSTEMPLOYMENT BENEFTS REGULATORY ASSET 1 PENSON AND OTHER POSTEMPLOYMENT BENEFTS REGULATORY ASSET SUMMARY 15 BEGNNNG BALANCE ACCUMULATED DEFERRED NCOME TAXES-ACCOUNTS 19/8/83 (1) 1 BASE LABOR ADJUSTMENT 17 MEDCAL AND DENTAL BENEFTS ADJUSTMENT 18 PENSONS AND RETREE MEDCAL BENEFTS ADJUSTMENT 19 PENSONS AND RETREE MEDCAL BENEFTS FOR CTY OF DALLAS APPROVAL PROPERTY NSURANCE ADJUSTMENT 1 BLANK PAGE EMPLOYEE EXPENSE ADJUSTMENT 3 SHARED SERVCES (''SSU'') SERVCE-LEVEL FACTORS ADJUSTMENT SHARED SERVCES (''SSU'') COST CENTER FUNCTONS 5 MSCELLANEOUS ADJUSTMENTS UNCOLLECTBLE EXPENSE ADJUSTMENT 7 RULE COMPLANCE ADJUSTMENT 8 CUSTOMER CONSERVATON PROGRAM ADJUSTMENT WP B-1 WP B-1.1 WP B-1. WP B-1.3 WP B-1. WP B- WP B-3 WP B- WP B-5 WP B- WP B-.1 WP B-. WP B-7 WP B-7.1 WP E-1 WP F-.1 WP F-. WP F-.3 WP F-.3.1 WP F-. WP F-.5 WP F-. WP F-.7 WP F-.7.1 WP F-.8 WP F-.9 WP F-.1 WP F-.11 Table of Contents Page of 3

22 ATMOS ENERGY CORP., MD-TEX DVSON TABLE OF CONTENTS TEST YEAR ENDNG SEPTEMBER 3, 18 LNE NO. DESCRPTON WORKPAPER 9 TAXES OTHER THAN NCOME TAX WORKPAPER 3 SHARED SERVCES ("SSU") ADJUSTED TOTAL LABOR ALLOCATED TO MD-TEX FOR PAYROLL TAX CALCULATON 31 SUMMARY PROOF OF REVENUE AT CURRENT RATES- BASE RATES 3 CALCULATON OF CURRENT REVENUES BY AREA- RATER- BASE RATES 33 CALCULATON OF CURRENT REVENUES BY AREA- RATE C- BASE RATES 3 CALCULATON OF CURRENT REVENUES BY AREA- RATE &T- BASE RATES 35 OTHER REVENUES 3 NON-STANDARD CONTRACT MARGNS 37 TYPCAL BLL COMPARSON- BASE RATES 38 CTY OF DALLAS AVERAGE BLL COMPARSON- BASE RATES 39 SUMMARY PROOF OF REVENUE AT PROPOSED RATES- BASE RATES CALCULATON OF PROPOSED REVENUES BY AREA- RATER- BASE RATES 1 CALCULATON OF PROPOSED REVENUES BY AREA- RATE C- BASE RATES CALCULATON OF PROPOSED REVENUES BY AREA- RATE &T- BASE RATES 3 PROPOSED TARFF STRUCTURE WP F-5.1 WP F-5. WP J-1 WP J-1.1 WP J-1. WP J-1.3 WP J- WP J-.1 WP J-3 WP J-3.1 WP J- WP J-.1 WP J-. WP J--.3 WP J-5 Table of Contents Page 3 of3

23 ATMOS ENERGY CORP., MD-TEX DVSON REVENUE REQUREMENTS BY SERVCE CLASS TEST YEAR ENDNG SEPTEMBER 3, 18 Line No. Current Proposed Description Revenues Revenues 1 (a) (b) (c) Proposed Change (d) Percent Change (e) Residential. {Base Revenue) $ 73,1,5 $ 5,339,778 Residential (Rider GCR) 83,,338 83,,338 Residential (Rider FF & Rider TAX) Total Residential Commercial (Base Revenue) $ 1,77,959 $ 115,93,5 Commercial (Rider GCR) 7,317,517 7,317,517 Commercial (Rider FF & Rider TAX) 5,397,98,15,97 T a tal Commercial $,83,175 $ 1,399,5 ndustrial/transportation (Base Revenue) $ 11,981,8 $ 13,357,35 ndustrial/transportation (Rider GCR) 5,5,38 5,5,38 ndustrial/transportation (Rider FF & Rider TAX),5,5,,8 Total ndustrial/transportation $,1,375 $ 1,8,11 Other Revenue (Base Revenue) $ 15,193,159 $ 15,193,159 Other Revenue (Rider GCR) Other Revenue (Rider FF & Rider TAX) Total Other Revenue Base Revenue $ 5,1,59 $,85,97 RiderGCR 78,9. 78,9, Rider FF & Rider TAX 9,99,9 9,993,78 Total Operating Revenues $ 1,8,999,5 $ 1,5,719,9 $ 7,175,773 $ 11,18, 78,9 $ 11,91,75 $ 1,375,57 9,159 $ 1,7,7 $ $ 59,719,38,1,37 $ 3,7, 9.97%.% 1.%.%.95%.95% 11.8%.% 3.7% 3.7%.%.% 9.87%.%.3%.3% 7 Note: 8 1 Proposed Revenues are the result of the application of the proposed rates to billing determinants. Schedule A Page 1 of

24 ATMOS ENERGY CORP., MD-TEX DVSON REVENUE REQUREMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 Line No. Description (a) Reference Base Revenue (b) (c) (d) Rider FF & Rider Rider GCR TAX Total (e) (f) (g) Rider GCR Part A Rider GCR Part 8 Total Rider GCR Operation and Maintenance Expenses Taxes Other than ncome Taxes Depreciation and Amortization Expense nterest on Customer Deposits Rate Base Rate of Return ncome Taxes Revenue Requirements Current Revenues Proposed Cost of Service Systemwide Amortization of Excess Accumulated Deferred ncome Taxes ncluding Revenue Related Taxes Proposed Cost of Service -Systemwide Adjusted for Excess AD T Proposed Cost of Service - City of Dallas Rate Case Expense Recovery Schedule H $ $ Schedule $ $ Schedule F-1 $ 197,35,79 $ Schedule F-5 7,18,139 Schedule F-3 155,15,951 Schedule F-7 5,79 Schedule B $,81,598, 78 Schedule G 7.9% 7,7, Schedule F- 9,5,3 Schedule A (Ln - Ln ) WP _B-.1 (Ln - Ln ) WP _J-5.1 Total Proposed Cost of Service ncluding Rate Case Expenses (Ln 3 plus Ln 3} $ 7,99,87 $,7,173 $ $,7,173 37,158,7 37,158,7 78,9, $ $ 78,9, $ $ 197,35,79 97,83,77 1,983,1 155,15,951 5,79 7,7, 9,5,3 78,9, $ 97,83,77 $ 1,557,,8 $ 1,8,999,5 $ 7,13,8 $,89,838 $ 3,718,5 $ 9,98,779 $ 15,7 $ 1,85,81 Schedule A Pageof

25 ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE AS OF SEPTEMBER 3, 18 Line No. Description (a) Reference (b) Amount per Books (c) Adjustment (d) Total Requested (e) (c)+(d) Net Plant (1 ): Gross Plant Accumulated Depreciation Total Net Plant (Ln minus Ln 3) Additions: Materials & Supplies Prepayments Pension and Other Postemployment Benefits Regulatory Asset Total Additions (Sum Ln 7 through Ln 9) Deductions: Customer Deposits (35) njuries and Damages Reserve Accumulated Deferred ncome Taxes Regulatory Liability (Account 53, Sub-Account 799) () Rate Base Adjustments Total Deductions (Sum of Ln 13 through Ln 17) Total Cash Working Capital Rate Base (Ln plus Ln 1 minus Ln 18 plus Ln ) Schedule C ScheduleD WP_B-3 WP_B- WP_B-7.1 WP_B-5 WP_B- WP_B- WP _B-.1/. WP _B-1 Schedule E $,9, 7,1 1,1,57,59 $ 3,5,55,887 $ 1,1,58 1,57,7 (8, 15) $ 1,95,71 $ 11,755,73 8,789,93 87,,88 9,3,98 $ 797,591,833 Notes: 5 1. The rate base adjustments include amounts previously disallowed and other known and measurable rate base adjustments.. The Regulatory Liability represents the excess deferred income taxes resulting from the revaluation of AD T due to the Tax Cuts and Jobs Act. $ $,719,98,755 $ (1,,3) $,93,,93 (78, 73,37) 1,3,88,883 $,59,13 $ 3,57,1,1 $ (98,957) $ 9,9 3,935,88 18,58,18 (8, 15) $ 3,83,93 $ 18,8,5 $ $ 11,755,73 (,9,895),9,598 (17,75,51) 379,37,37 (,,58) 8,1,3 11,713,955 11,713,955 $ (1 8, 788,!) $ 88,83,59 $ (35,1,5) $ (35,1,5) $ 11,7, $,81,598, 78 Schedule B Page 1 of 1

26 Line No. Description (a) ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE ADJUSTMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 Amounts (b) 1 GUD 97 Amortization of Disallowed Projects (WP_B-1.1) GUO 97 Amortization of Employee Expenses (WP_B-1.) 3 GUO 989 Amortization of Employee Expenses (WP_B-1.3) GUO 117Amortization of Employee Expenses (WP_B-1.) (1) 5 Employee Expense Adjustment, April1 through December 31, (1) Employee Expense Adjustment, TYE December 31,13 7 Employee Expense Adjustment, TYE December 31,1 8 Employee Expense Adjustment, TYE December 31, 15 9 Employee Expense and Other Adjustments, January 1, 1 through March 31, 17 () 1 Capitalized SSU MPNPP ncentive Compensation Adjustment, TYE September 3, 18 (3) 11 Capitalized SSU L TP ncentive Compensation Adjustment, TYE September 3, 18 (3) Mid-Tex VPP paid above Target () 13 Mid-Tex MP paid above Target () 1 Mid-Tex LTP paid above Target () 15 Employee-related Expenses not included in Expense Reports (5) 1 Heath Leak Survey Contractors () 17 Employee Expense Adjustment, TYE September 3, 18 (7) Total (Sum of Ln 1 through Ln 17) 1 Notes: $ $,,59 15, , 9,8 1,91, 11,7 1,8 1,38,11,87,17,59,71,7 1,57 87,8 193,735 (,71,91 ) 11,191 11,713, The adjustment on Line includes amounts for Shared Services Divisions and and Mid-Tex through March 31,. The adjustment on Line 5 includes amounts for Shared Services Divisions and and Mid-Tex for the period April1 through December 31,.. The adjustment includes Employee Expenses for the period of January 1, 1 through March 31, 17; Employee Expenses not included in Expense 3 Reports and capitalized Severance. 3. An adjustment to remove capitalized SSU ncentive Compensation aligns with the Final Order in GUO No. 158, Finding of Fact No An adjustment to remove capitalized Mid-Tex direct ncentive Compensation paid above target aligns with the Final Order in GUO No. 158, Finding of 5 Fact No Capitalized Employee-related Expenses have been adjusted beginning October 1, 17 through September 3,18 for amounts not included in expense reports and recorded in sub-accounts 5 and 9 series accounts. The adjustment includes Mid-Tex direct and allocated SSU General Office and Customer Support amounts. 7. An adjustment to increase Heath Leak Survey Contractors to the Fiscal Year 19 amount See Page, Col (e), Ln 17. WP _B-1 Page 1 of

27 ATMOS ENERGY CORP., MD-TEX DVSON EMPLOYEE EXPENSE ADJUSTMENT TO CAPTAL TEST YEAR ENDNG SEPTEMBER 3, 18 Line No. Shared Services ~ Shared Services - Customer Support General Office Description () () (a) (b) (c) Mid-Tex Direct (d) Total Adjustment (e) Twelve Months Ended Segtember 3, 18: Employee Expense Adjustment $ 137,98 $ 33,535 Mid-Tex Allocation Factor (1) () 5.7% 38.9% Allocated Employee Expense Totals (Ln times Ln 3) $ 7,95 $ 8,9 Capitalization Factor (1).8%.% Subtotal (Ln 5 times Ln ) $ 9,9 $ 33,355 Add Charges Direct to Capital: Employee Expense Adjustment (April 1, 17 - September 3, 17) $ 17 $ 1,5 Employee Expense Adjustment (October 1, 17- September 3, 18) 9 55 Subtotal (Sum of Ln 1 through Ln 11) $ 3 $,5 Mid-Tex Allocation Factor (1) () 5.7% 38.9% Allocated Employee Expense Charged Direct to Capital (Ln times Ln 13) $ 7 $ 78 Total Test Year Ending September 3, 18 Employee Expense Report Charges (Ln 7 plus Ln 15) $ 9,35 $ 3,11 Notes: 1. See WP _F-.1, Col (b) and Col (c) Lns 11 and 15, for the Shared Services factors, as adjusted.. Mid-Tex costs are directly charged and not allocated. $ 85,975 1.% $ 85,975.% $ $,87 9,818 $ 7,9 1.% $ 7,9 $ 7,9 $ 11,191 WP_B-1 Page of

28 Line No ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE ADJUSTMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 GUO 97 RATE BASE ADJUSTMENTS AMORTZATON SCHEDULE 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) 5 $ 1,, $ 1,, $ 3,895 1,95,17 7 1,95,17 3,895 9,95, 8 9,95, 3,895 9,5, ,5,318 3,895 9,,3 1 9,,3 3,895 8,915, ,915,58 3,895 8,57,33 8,57,33 3,895 8,5, ,5,739 3,895 7,88,8 1 7,88,8 3,895 7,535, ,535,99 3,895 7,191,55 1 7,191,55 3,895,8,1 17,8,1 3,895,51,5 18,51,5 3,895,15,371 19,15,371 3,895 5,811,7 5,811,7 3,895 5,, ,,581 3,895 5,1,8 5,1,8 3,895,77,79 3,77,79 3,895,31,897,31,897 3,895,87, 5,87, 3,895 3,7,18 3,7,18 3,895 3,397,13 7 3,397,13 3,895 3,5, ,5,318 3,895,77, 9,77, 3,895,3,59 3,3,59 3,895,17,3 31,17,3 3,895 1,7, ,7,739 3,895 1,37, ,37,85 3,895 98, ,95 3,895 38, ,55 3,895 93, ,11 93,11 Notes: 1. The annual amortization is calculated based upon the period specified in GUO 97 Final Order, Schedule 8, Page, Footnote 1.. The December 31, 5 amount is per GUO 97 Final Order, Schedule B, Page, Ln 1. Balance as of September 3, 18 (e) $,,59 WP_B-1.1 Page 1 of 1

29 ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE ADJUSTMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 GUD 97 RATE BASE ADJUSTMENTS -AMORTZATON SCHEDULE Line No Beginning of Year End of Year Rate Base Rate Base Balance as of Year Ended Adjustment Annual Adjustment September 3, June 3 Amount Amortization {1) Amount() 18 (a) (b) (c) (d) (e) 7 $,99 8 $,99 $ 8,5 38,9 9 38,9 8,5 3, ,939 8,5,935 11,935 8,5 1,93 1,93 8,5,95 13,95 8,5 198, ,9 8,5 19, ,915 8,5 18, ,91 8,5 17, ,9 8,5 1, ,91 8,5 158,89 $ 15, ,89 8,5 15,891 15,891 8,5 1,88 1 1,88 8,5 13,881 13,881 8,5,877 3,877 8,5 118,87 118,87 8,5 11, ,87 8,5,8,8 8,5 9, ,857 8,5 8,85 8 8,85 8,5 78, ,88 8,5 7,83 3 7,83 8,5,838 31,838 8,5 5, ,833 8,5,88 33,88 8,5 38,8 3 38,8 8,5 3, ,819 8,5,81 3,81 8,5 1, ,89 8,5,8 38,8,8 Notes: 1. The annual amortization is calculated based upon the period specified in GUO 97 Final Order, Schedule B, Page, Footnote 1.. The June 3, 7 amount is per GUO 97 Final Order, WP _B-1, Page 1, Ln + Ln 3. WP_B-1. Page 1 of 1

30 ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE ADJUSTMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 GUD 989 RATE BASE ADJUSTMENTS- AMORTZATON SCHEDULE Line No Beginning of End of Year Year Year Rate Base Rate Base Ended Adjustment Adjustment Balance as of Dec 31 Amount (1) Amortization {) Amount Se~tember 3, 18 (a) (b) (c) (d) (e) 8 $ 8,1 9 $ 8.1 $ 9, ,73 9, , 9,71 58, , ,71 3, ,377 9, ,1 9,71 11, , , $ 195, ,71 18, , ,753 9, , ,11 9, ,91 9, ,7 9,71 8,399 8,399 9,71 119, ,71 19, ,858 9, ,587 9, ,31 9,71 8, , ,775 9, ,5 9,71 5, ,93 35,93 9, ,9 9,71, , ,71 7, ,88 Notes: 1. The 8 amount in Col (d) is from GUD 989 WP _B-1, Col (e), Ln 9. The other disallowances from GUD 989 have been removed on Schedule C.. The annual amortization is calculated based upon the period specified in GUO 97 Final Order, Schedule B, Page, Footnote 1. WP_B-1.3 Page 1 of 1

31 ATMOS ENERGY CORP., MD-TEX DVSON RATE BASE ADJUSTMENTS TEST YEAR ENDNG SEPTEMBER 3, 18 GUO 117 RATE BASE ADJUSTMENTS -AMORTZATON SCHEDULE Line No Beginning of End of Year Year Year Rate Base Rate Base Ended Adjustment Annual Adjustment Balance as of Mar 31 Amount (1) Amortization () Amount September 3, 18 (a) (b) (c) (d) (e) $ 119,35 13 $ 119,35 $ 3, , ,757 3, , ,879 3,878 18,1 1 18,1 3,878 1,3 17 1,3 3,878 1,5 18 1,5 3,878 9,37 $ 9,8 19 9,37 3,878 9,89 9,89 3,878 88, ,11 3,878 8,733 8,733 3,878 8, ,855 3,878 7,977 7,977 3,878 73,1 5 73,1 3,878 9, 9, 3,878 5,3 7 5,3 3,878 1, 8 1, 3,878 57, ,588 3,878 53, ,71 3,878 9, ,83 3,878 5,95 3 5,95 3,878,7 33,7 3,878 38, ,198 3,878 3,3 35 3,3 3,878 3, 3 3, 3,878,5 37,5 3,878,8 38,8 3,878 18, ,88 3,878 1,93 1,93 3,878 11,5 1 11,5 3,878 7,17 7,17 3,878 3,9 3 3,9 3,9 Notes: 1. The amount in Col (d) is from GUD 117 WP _B-1, Col (b), Lns through.. The annual amortization is calculated based upon the period specified in GUD 97 Final Order, Schedule B, Page, Footnote 1. WP_B-1. Page 1 of 1

32 ATMOS ENERGY CORP., MD-TEX DVSON NJURES AND DAMAGES AND WORKERS COMP RESERVES (1) TEST YEAR ENDNG SEPTEMBER 3, 18 Line No. Per Book Adjusted Month Ending Amount Adjustments Amount (a) (b) (c) (d)= (b)+(c) Allocation Factor (e) Allocated Amount (D- (d)'( e) Mid-Tex (} September 3,17 $,13,531 $ $,13,531 October31, 17,,97,,97 November 3, 17,11,1,11,1 December 31, 17 1,88,79 1,88,79 January 31, 18 1,95,1 1,95,1 February 8, 18 1,953,17 1,953,17 March 31,18 1,9,87 1,9,87 April 3, 18 1,97,99 1,97,99 May31, 18 1,993,83 1,993,83 June 3, 18,,53,,53 July31, 18 1,997, 1,997, August31, 18 1,91,99 1,91,99 September 3, 18 1,88,33 8,5 1,99,133 1.% $ 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.% 1.%,13,531,,97,11,1 1,88,79 1,95,1 1,953,17 1,9,87 1,97,99 1,993,83,,53 1,997, 1,91,99 1,99,133 WP_B- Page 1 of

33 General ATMOS ENERGY CORP., MD-TEX DVSON NJURES AND DAMAGES AND WORKERS COMP RESERVES (1) TEST YEAR ENDNG SEPTEMBER 3, 18 Line No Per Book Adjusted Month Ending Amount Adjustments Amount (a) (b) (c) (d)- (b)+(c) Shared Services R Office (Div } (3} September 3, 17 $ 7,98,771 $ (7,383,771) $ 315, October 31, 17 7,75,1 (7,383,771) 31,395 November 3, 17 7,71,7 (7,383,771) 317,9 December31, 17 7,97,75 (7,383,771) 313,3 January 31, 18 7,7,87 (7,383,771) 31,9 February 8, 18 7,7,91 (7,383,771) 39,19 March 31,18,1,337 (11,883,771) 3,55 April 3, 18,9,113 (11,883,771) 35,3 May 31,18,35, (11,883,771) 351,853 June 3, 18 1,19,171 (1,88, 17) 331,1 July 31, 18,,583 (,88, 17) 33, August 31, 18,17,77 (,88, 17) 39, September 3, 18 18,7,8 (17,7,17) 37,71 Shared Services -Customer Su~uort (Div } September 3, 17 $ $ $ October 31, 17 November 3, 17 December31, 17 January 31, 18 February 8, 18 March 31,18 April 3, 18 May31, 18 June 3, 18 July31, 18 August31, 18 September 3, 18 Total at September 3, 18 (Col n= Sum Ln 1 plus Ln 9 plus Ln ) $ 8,789,93 Allocation Factor (e) 38.9% $ 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% 5.7% $ 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% Notes: 1. Account 8. and Sub-accounts 8 (Workers' Camp-ns Reserve) and 811 (lnj & Damages -ns Reserve).. The adjustment in Column (c) to sub-account 811 is for an entry which was reversed in October The adjustment in Column (c) removes reserves not allocated to the divisions, sub-account 811. Please refer to Cost Center 193. $ Allocated Amount <n- (d)'( e),13 3, 1,93 119,9,98,39 5, 13,31 13,7,7 7,81,5 5,5,9,598 WP_B- Pageof

34 ATMOS ENERGY CORP., MD-TEX DVSON MATERALS & SUPPLES-ACCOUNTS 15 & 13 TEST YEAR ENDNG SEPTEMBER 3, 18 Line No MonthNear Ending (a) September 3, 17 $ October 31,17 November 3, 17 December 31,17 January 31,18 February 8, 18 March 31, 18 April 3, 18 May 31,18 June 3, 18 July 31, 18 August 31,18 September 3, Month Average $ Amount (b) 1,31, 1,,5 1,,8 1,3,9 1,5,3 95,9 8,37 557,531 59,11 77,117 88,898 9,799 1,1,58 9,9 WP_B-3 Page 1 of 1

35 ATMOS ENERGY CORP., MD TEX DVSON PREPAYMENTS-ACCOUNT 15 TEST YEAR ENDNG SEPTEMBER 3, 18 Line 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 September 3, 17 October 31, 17 November 3, 17 December31, 17 January 31, 18 February 8, 18 March 31, 18 April3, 18 May 31,18 June 3, 18 July 31,18 August31, 18 September 3, Month Average $,37,71 $ (515,7) $ 3,8,371,,3 (71,99) 5,,3 5,11,83 (,99),513,839 51,53 (3,81) 77,77 (3,,3) 3,789 (3,,) 7,7,95 (89,5),711,35 8,38,81 (987,1) 7,393,17 15,585,5 (1,83,87) 13,78,85 1,7,31 (1,79,31),95,115 7,1,78 (85,3),3,8 1,795,758 (1,7,3) 9,53,5 7,977,718 (9, 138) 7,37,579,89,78 (55,7) 3,783,8 $,8,35 $,57,183 Shared Services-General Office (Div } September 3, 17 $,58,537 $ $,58,537 October31, 17 33,153,7 33,153,7 November 3, 17 3,859,3 3,859,3 December 31, 17 3,1,9 3,1,9 January 31,18 9,9,988 9,9,988 February 8, 18 7,1,1 7,1,1 March 31,18 31,83,3 31,83,3 April 3, 18 8,95,5 8,95,5 May 31,18 3,99,3 3,99,3 June 3, 18 33,1,11 33,1,11 July 31,18 3,11,59 3,11,59 August31, 18 7,91,7 7,91,7 September 3, 18 5,73,98 5,73,98 13-Month Average $ 9,9,57 $ 9,9,57 1% $,57, % $ 11,7,15 WP _B- Page 1 of

36 ATMOS ENERGY CORP., MD-TEX DVSON PREPAYMENTS-ACCOUNT 15 TEST YEAR ENDNG SEPTEMBER 3, 18 Line No MonthNear Ending (a) Amount Adjustments (1) Adjusted Total (b) (c) (d)- (b)+(c) Shared Services-Customer Su(!(!ort {Div Q} September 3, 17 $ 1,3,89 $ $ 1,3,89 October31, 17 95,85 95,85 November 3, 17,583,7,583,7 December 31, 17,3,1,3,1 January 31, 18,9,73,9,73 February 8, 18,3,81,3,81 March 31,18,8,19,8,19 April 3, 18 1,999,57 1,999,57 May 31,18 1,7,89 1,7,89 June 3, 18 1,53,75 1,53,75 July 31, 18 1,57,98 1,57,98 August 31,18 1,7,99 1,7,99 September 3, 18 1,158, 1 '158, 13-Month Average Total Prepayments September 3, 18 Total Prepayments 13-Month Average (Ln 15 plus Ln 3 plus Ln 9) $ 1,88,77 $ 1,88,77 $ 1,57,7 Allocation% (e) Allocation to Mid-Tex (f)= (d)x(e) 5.7% $ 97,88 $ 18,58, Note: 1. The Mid-Tex adjustment is to remove franchise fee prepayments for those cities that are handled as payment in arrears for ratemaking 5 purposes. The adjustment amount is based on the factor (11.78%) calculated in the GUO 989 Prepayment Study. WP_B- Page of

37 ATMOS ENERGY CORP., MD-TEX DVSON CUSTOMER DEPOSTS AND CUSTOMER ADVANCES FOR CONSTRUCTON TEST YEAR ENDNG SEPTEMBER 3, 18 Line No. Month/Year Ending Amount (a) (b) 1 Customer De!!osits - Acct 35 September 3, 17 $ 13,13,13 3 October 31, 17 13,79,7 November 3, 17,97,87 5 December 31, 17,91,13 January 31, 18,75, 7 February 8, 18,7,38 8 March 31, 18,,5 9 April 3, 18,585, 1 May 31,18,91,98 11 June 3, 18 11,93,9 July 31,18 11,88, 13 August 31,18 11,83, 1 September 3, 18 11,755, Customer Advances - Acct 5 17 September 3, 17 $ 18 October31, November 3, 17 December 31,17 1 January 31,18 February 8, 18 3 March 31,18 April3, 18 5 May 31,18 June 3, 18 7 July 31, 18 8 August 31, 18 9 September 3, 18 WP_B-5 Page 1 of 1