energy. Philip R. Littlejohn Vice President, Regulatory Affairs West Texas Division

Transcription

1 energy. Philip R. Littlejohn Vice President, Regulatory Affairs West Texas Division April 3,218 Geoffrey Gay Lloyd Gosselink Rochelle & Townsend, P.C. 816 Congress Avenue Suite 19 Austin, Texas 7871 Re: Atmos Energy Corporation's WEST TEXAS 218 Rate Review Mechanism Filing Dear Mr. Gay, Enclosed for filing is Atmos Energy Cmporation, West Texas Division's ("Atmos" or "the Company") first filing under this Rate Review Mechanism tariff. Per om agreement, service is being provided to you in lieu of service to the individual West Texas member cities. We are providing one printed copy along with one flash drive for the West Texas group. A flash drive has been sent directly to each of your consultants. A one page Executive Sununary will be sent to the West Texas member cities to notify them of this filing. If any of the West Texas member cities desire additional printed copies, please let me know. v If any further information is required, please contact me at Sln=ly, Philip R. Littlejohn Enclosmes: RRM Filing Package (1 copy) Flash Drive (1) Atmos Energy Corporation Street, Lubbock, TX P 86~79&,4449 nhilip.liuldolm@atmoscncrgv com

2 Atmos Energy Corporation West Texas Cities Division Executive Summary 218 RRM Filing April 3, 218 Atmos Energy Corporation - West Texas Division reached an agreement with the West Texas Cities Steering Committee in February 218 for an annual Rate Review Mechanism (RRM). The RRM is a systematic process collaboratively developed by Atmos Energy Corporation (West Texas Division) and the West Texas Cities coalition, specifying how rates will be set over a specified period of time. Benefits of the RRM process o Suspends GRIP filings o Avoids costly 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 this 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 4 million for the months ending December 31, 217. o The rates within this filing reflect 15 months of capital expenditures invested since the last rate filing test year end of September 216 through the current test year end of December 217. The filing package supports an increase in rates of: o Average Residential customer using 48.4 Ccf a month will have an increase of 2.14, 4.66% overall. o Average Commercial customer using Ccf a month will have an increase of 6.17, 3.58% overall. o Average Industrial customer using 5,656.7 Ccf a month will have an increase of 7.79, 2.17% overall. o Average Transportation customer using 5,656.7 Ccf a month will have an increase of 7.79, 7.67%% overall. o Average Public Authority customer using Ccf a month will have an increase of 15.78, 3.1% overall. The Company has calculated the change in rates based on the terms of set forth in its Rider RRM tariff.

3 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 West Texas system to make a safe system safer. o The filing package supports over 15 million of total capital investment made in the West Texas system with 84% (88 million) related to improving system safety and reliability. Included within the filing in attachment MFR 1-7 is a listing of all projects completed since the previous rate filing test year end of September 216 through the current test year of December 217. 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 Within this 218 filing o 461 miles of distribution pipe replaced o 15 miles of distribution pipe replaced 329 miles of bare steel 72 miles of bare steel 132 miles of vintage plastic 33 miles of vintage plastic o 2,282 steel service lines replaced o Over 2,461 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 prior to October 1, 218.

4 Atmos Energy Corporation West Texas Division West Texas Cities Division Rate Review Mechanism Filing Table of Contents Cover Letter Attestation of Filing Attestation of Filing- Philip R. Littlejohn Proposed Tariffs Residential Gas Service Connnercial Gas Service Industrial Gas Service Public Authority Gas Service Transportation Gas Service Current Tariffs Residential Gas Service Commercial Gas Service Industrial Gas Service Public Authority Gas Service Transportation Gas Service Narrative of Changes Notice RRM- Cost of Service Schedules and Workpapers Atmos Energy Corporation, West Texas Cities Rate Review Mechanism, Test Year Ending December 31,217 Total to Adjusted Reconciliation RRM- Billing Determinants Study and Workpapers Atmos Energy Corporation, West Texas Division, Billing Determinants Study

5 Atmos Energy Corporation West Texas Division West Texas Cities Division Rate Review Mechanism Filing Table of Contents Index of Files on CD/Flash Drive: Cover Letter, Table of Contents, Attestation of Filing, Proposed and Current Tariffs, Narrative of Changes, and Notice Atmos Energy Corporation, 217 WTX Cities RRM, Total Cost of Service Atmos Energy Corporation, West Texas Division, Billing Determinants Study Atmos Energy Corporation, West Texas Division, Minimum Filing Requirements Relied Files o Atmos Energy Corporation, 217 WTX Cities RRM, Adjusted Cost of Service Confidential CD/Flash Drive (Provided separately):

6 WEST TEXAS DIVISION RATE REVIEW MECHANISM BEFORE THE RESPECTIVE GOVERNING BODY OF THE, WEST TEXAS DIVISION CITIES AND TOWNS ATTESTATION OF PHILIP R. LITTLEJOHN Before me, the undersigned authority, on this date personally appeared Philip R. Littlejohn, known to me to be the person whose name is subscribed below, and being by me frrst duly sworn, stated upon oath as follows: 1. " My name is Philp R. Littlejohn. I am Vice President of Rates and Regulatory Affairs for Atmos Energy Corporation's West Texas Division. I have approximately 9 years of experience in the natural gas utility industry. I am fully competent to malce this affidavit, 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 personal knowledge." SWORN AND SUBSCRIBED before me this the 2D ~ day of March, 218. ~''~V~z,,.,. GISELLE A HEROY [f{.::j::.~ N-otary Public, State of Texas ;;.~{l Comm. Expires ;o;.~w.'''''~ Notary ID ~

7 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: RESIDENTIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 1/1/218 I Availability This schedule is applicable to general use by Residential customers for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge... Amount Customer Charge 16.1 Consumption Charge per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

8 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: COMMERCIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after I Availability This schedule is applicable to Commercial customers, including hospitals and churches, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge Amount.. Customer Charge 44.5 Consumption Charge '.1379 per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

9 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: INDUSTRIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 1/1/218 I Availability This schedule is applicable to the sales to any industrial or commercial customer whose predominant use of natural gas is other than space heating, cooking, water heating or other similar type uses. Service under this schedule is available to eligible customers following execution of a contract specifying the maximum hourly load. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge Amount. Customer Charge 424. Consumption Charge.915 per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

10 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: PUBLIC AUTHORITY GAS SERVICE WEST TEXAS CITIES SERVICE AREA - Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 1/1/218 I Availability This schedule is applicable to general use by Public Authority type customers, including public schools, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge Amount.. Customer Charge 5.25 Consumption Charge per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

11 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: TRANSPORTATION SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 1/1/218 I Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Almas Energy Corp., West Texas Division Distribution System 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 with an estimated annual usage greater than 1, Ccf per 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 bill will be calculated by adding the following Customer and Ccf charges to the amounts and quantities due under the riders listed below: Charge. Amount Customer Charge per Meter Consumption Charge 424. per month.915 per Ccf Upstream Transportation Cost Recovery: The customer is responsible for all upstream transportation costs. Retention Adjustment: Plus a quantity of gas equal to the Company's most recently calculated financial L&U percentage for the twelve months ended September multiplied by the gas received into Almas Energy Corporation's West Texas Division for transportation to the customer. 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). Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). The West Texas Division Rider RRM applies to this schedule. Conversions: Units may be converted from Ccf to Mcf or Mmbtu as necessary to comply with the underlying transportation agreement.

12 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: TRANSPORTATION SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 1/1/218 I 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 a monthly imbalance fee at the end of each month as defined in the applicable Transportation Agreement, 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 2% of the "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha". Replacement Index In the event the "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive transportation service under this tariff, customer must have the type of meter, instrumentation, and communication required by Company. Customer must pay Company all costs associated with the acquisition and installation of the required equipment.

13 WEST TEXAS DIVISION RRC TARIFF NO: RATE SCHEDULE: APPLICABLE TO: RESIDENTIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 17 Availability This schedule is applicable to general use by Residential customers for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge Amount Customer Charge 15.5 Consumption Charge per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

14 WEST TEXAS DIVISION RRC TARIFF NO: RATE SCHEDULE: APPLICABLE TO: COMMERCIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 18 Availability This schedule is applicable to Commercial customers, including hospitals and churches, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge. Amount Customer Charge Consumption Charge.69 per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

15 WEST TEXAS DIVISION RRC TARIFF NO: RATE SCHEDULE: APPLICABLE TO: INDUSTRIAL GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 19 Availability This schedule is applicable to the sales to any industrial or commercial customer whose predominant use of natural gas is other than space heating, cooking, water heating or other similar type uses. Service under this schedule is available to eligible customers following execution of a contract specifying the maximum hourly load. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge. Amount Customer Charge Consumption Charge.8656 per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

16 WEST TEXAS DIVISION RRC TARIFF NO: RATE SCHEDULE: APPLICABLE TO: PUBLIC AUTHORITY GAS SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 2 Availability This schedule is applicable to general use by Public Authority type customers, including public schools, for heating, cooking, refrigeration, water heating and other similar type uses. This schedule is not available for service to premises with an alternative supply of natural gas. Monthly Rate Charge Amount. Customer Charge 117. Consumption Charge.1171 per Ccf The West Texas Division Gas Cost Adjustment Rider applies to this schedule. The West Texas Division Weather Normalization Adjustment Rider applies to this schedule. The West Texas Division Rider TAX applies to this schedule. The West Texas Division Rider FF applies to this schedule. The West Texas Division Rider RRM applies to this schedule. Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s).

17 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: TRANSPORTATION SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 21 Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., West Texas Division Distribution System 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 with an estimated annual usage greater than 1, Ccf per 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 bill will be calculated by adding the following Customer and Ccf charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter Consumption Charge per month.8656 per Ccf Upstream Transportation Cost Recovery: The customer is responsible for all upstream transportation costs. Retention Adjustment: Plus a quantity of gas equal to the Company's most recently calculated financial L&U percentage for the twelve months ended September multiplied by the gas received into Atmos Energy Corporation's West Texas Division for transportation to the customer. 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). Miscellaneous Charges: Plus an amount for miscellaneous charges calculated in accordance with the applicable rider(s). The West Texas Division Rider RRM applies to this schedule. Conversions: Units may be converted from Ccf to Mcf or Mmbtu as necessary to comply with the underlying transportation agreement.

18 WEST TEXAS DIVISION RATE SCHEDULE: APPLICABLE TO: TRANSPORTATION SERVICE WEST TEXAS CITIES SERVICE AREA- Inside City Limits (ICL) EFFECTIVE DATE: Bills Rendered on and after 3/1/218 I PAGE: 22 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 a monthly imbalance fee at the end of each month as defined in the applicable Transportation Agreement, 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 2% of the "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha". Replacement Index In the event the "Index" price reported for the month of delivery in Inside FERC's Gas Market Report under the heading "West Texas Waha" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive transportation service under this tariff, customer must have the type of meter, instrumentation, and communication required by Company. Customer must pay Company all costs associated with the acquisition and installation of the required equipment.

19 A TMOS ENERGY CORPORATION, WEST TEXAS DIVISION WEST TEXAS CITIES RATE DIVISION NARRATIVE OF CHANGES The Company's first Rate Review Mechanism ("RRM") filing under the tariff negotiated in February 218 is for the period ending December 31, 217. The filing package reflects a system-wide cost of service increase in the amount of9.4 million. Of this amount 4. million is attributable to the West Texas Cities Rate Division. The differences between the 216 West Texas Cities RRM filing and this filing 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 TCJA: o The statutory federal income tax rate changed from 35% 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 year's amortization and the amortization reduces the total Cost of Service on Schedule A. o On WP _B-6, Line 21 anew item "Regulatory Liability- 217 Gross Up" has been added to ADIT and the balance reduced to account for the first year's amortization. o WP _B-6.1 and B-6.2 have been added to the filing to detail the amortization of the Regulatory Liability. Accumulated Deferred Income Taxes are aligned with the methodology used in GUD No , as per the tariff. 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 216 West Texas Cities 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 fiscal year 218 factors as per the tariff. The SSU Service Level Factors Adjustment is detailed in the filing on WP _F-2.7. WP F in the filing details the function of each Cost Center. Changes to SSU Cost Centers since the 216 West Texas Cities RRM filing include: o Cost Centers 1, 1146, 21 and 1417 have been added since the last RRM. Cost Centers 13 and 14 have been deactivated since the last RRM. The description of each of the Cost Center's functions can be found on WP F

20 WEST TEXAS CITIES CUSTOMER NOTICE On April 3, 218, Atmos Energy Corporation's West Texas Division ("Atmos Energy" or "the Company"), filed a Rate Review Mechanism ("RRM") filing to increase its natural gas rates and implement a new schedule of rates and riders. This filing is applicable to all customers living within the incorporated cities served by the West Texas Cities Rate Division. The proposed effective date of the requested rate change is October 1, 218. If approved, the proposed changes will affect approximately 5,191 residential, 1,178 commercial, 43 industrial and transportation, 1,398 public authority customers. If approved, the proposed rates will increase the Company's annual revenues for the incorporated areas of the West Texas Cities Rate Division by approximately 4. million, or 8.21% 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 West Texas Cities Rate Division will increase by the amount and percentage shown in the table below: Percentage Current Proposed Increase with Customer Class Bill** Bill** Difference Gas Cost Residential* Commercial* Industrial* 3, , Transportation Public Authority* % 3.58% 2.17% NA 3.1% Percentage Increase without Gas Cost 8.27% 8.21% 7.67% 7.67% 7.55% Notes: Bill impact ranges are subject to varying tax rates among the cities. *Includes Rider GCA cost of per Ccf. **The calculation ofbill impacts assumes monthly consumption of 48.4 Ccffor residential, Ccffor commercial, 5,656.7 Ccffor industrial/transportation and Ccffor public authority. Persons with specific questions or needing additional information about this filing may contact Atmos Energy Corporation at In addition, customers can contact their City for additional information regarding this rate request. Complete copies of the filed Rate Review Mechanism, including all proposed rate and schedule changes are available for inspection at Atmos Energy's offices located at th Street, Lubbock, Texas or visit our Web site at Este es un aviso a los clientes de las areas servidas por West Texas Division de Atmos Energy Corporation, (Ia "Compafifa''), que la Compafifa ha presentado una solicitud ala Comisi6n Ferroviaria de Texas para revisar y aprobar un aumento de tarifas de gas. Si utited tiene preguntas o desea informacion adicional sabre esta solicitud, por.favor!lame a Atmos Energy

21 Corporation all Ademas, usted puede ponerse en contacto con su municipalidad para informacion adicional sabre esta solicitud Capias completas de est a solicitud de aumento de tarifas, incluyendo todos los cambios propuestos, estan disponibles en las oficinas de Atmos Energy en th Street, Lubbock, Texas o visite nuestro paginaweb en www. a tmos energy. com/wtx-rrm.

22 File Date: March 3, 218 COST OF SERVICE SCHEDULES AND WORKPAPERS TEST YEAR ENDING DECEMBER 31, 217 Totals may vary due to rounding.

23 File Date: March 3,218 WEST TEXAS CITIES ("wtx CITIES") RATE REVIEW MECHANISM TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31, 217 LINE NO. DESCRIPTION SCHEDULE 1 REVENUE REQUIREMENTS 2 RATEBASE 3 COMPONENTS OF RATE BASE- GROSS PLANT 4 COMPONENTS OF RATE BASE- ACCUMULATED DEPRECIATION 5 CASH WORKING CAPITAL 6 OPERATION AND MAINTENANCE EXPENSES 7 ADJUSTMENTS TO OPERATION AND MAINTENANCE EXPENSES 8 DEPRECIATION AND AMORTIZATION EXPENSE 9 DEPRECIATION RATE SUMMARY 1 TAXES OTHER THAN INCOME TAX -ACCOUNT FEDERAL INCOME TAX AND STATE FRANCHISE (""GROSS MARGIN'') TAX INTEREST EXPENSE- CUSTOMER DEPOSITS 13 SUMMARY OF RETURN 14 BLANK SHEET 15 BLANK SHEET 16 SUMMARY OF CURRENT AND PROPOSED RATE STRUCTURE Schedule A Schedule B Schedule C ScheduleD Schedule E Schedule F-1 Schedule F-2 Schedule F-3 Schedule F-4 Schedule F-5 Schedule F-6 Scht?dule F-7 Schedule G Schedule H Schedule I Schedule J Table of Contents Page 1 of3

24 File Date: March 3,218 TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31, 217 LINE NO. DESCRIPTION WORKPAPER 1 RATE BASE ADJUSTMENTS 2 GUO NOS. 141,184,185 RATE BASE ADJUSTMENTS 3 GUO 1174 RATE BASE ADJUSTMENTS 4 CITY SETTLED SOl RATE BASE ADJUSTMENTS 5 CITY SETTLED SOl RATE BASE ADJUSTMENTS 6 CITY SETTLED SOl RATE BASE ADJUSTMENTS 7 CITY SETTLED SOl RATE BASE ADJUSTMENTS 8 INJURIES AND DAMAGES RESERVES 9 MATERIALS & SUPPLIES & UNDERGROUND STORAGE 1 PREPAYMENTS 11 CUSTOMER DEPOSITS AND CUSTOMER ADVANCES FOR CONSTRUCTION ACCUMULATED DEFERRED INCOME TAXES (1) (2) 13 AMORTIZATION OF REGULATORY LIABILITY 14 MIDPOINT OF REGULATORY LIABILITY 15 PENSION AND OTHER POST EMPLOYMENT BENEFITS REGULATORY ASSET 16 PENSION AND OTHER POST EMPLOYMENT BENEFITS REGULATORY ASSET SUMMARY 17 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) 18 BASE LABOR ADJUSTMENT 19 MEDICAL AND DENTAL BENEFITS ADJUSTMENT 2 PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT 21 PENSIONS AND RETIREE MEDICAL BENEFITS FOR APPROVAL 22 PROPERTY INSURANCE ADJUSTMENT 23 BLANK SHEET 24 EMPLOYEE EXPENSE ADJUSTMENT 25 SHARED SERVICES ("SSU") SERVICE-LEVEL FACTORS ADJUSTMENT 26 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS 27 MISCELLANEOUS ADJUSTMENTS 28 UNCOLLECTIBLE EXPENSE ADJUSTMENT 29 RULE COMPLIANCE ADJUSTMENT 3 BLANK SHEET 31 TAXES OTHER THAN INCOME TAX WORKPAPER 32 SHARED SERVICES ("SSU") ADJUSTED TOTAL LABOR ALLOCATED TO WEST TEXAS FOR PAYROLL TAX CALCULATION WP 8-1 WP B-1.1 WP WP B-1_3 WP B-1.4 WP WP B-1_6 WP 8-2 WP 8-3 WP 8-4 WP 8-5 WP B-6 WP WP WP 8-7 WP 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.Q_ WP F-2.7 WP F WP F-2.8 WP F-2.9 WP F-2.1 WP F-2.11 WP F-5_1 WP F-5.2 Table of Contents Page 2 of 3

25 File Date: March 3, 218 TABLE OF CONTENTS TEST YEAR ENDING DECEMBER 31,217 LINE NO. DESCRIPTION WORKPAPER 33 SUMMARY PROOF OF REVENUE AT CURRENT RATES 34 CALCULATION OF CURRENT REVENUES BY AREA- RESIDENTIAL 35 CALCULATION OF CURRENT REVENUES BY AREA- COMMERCIAL 36 CALCULATION OF CURRENT REVENUES BY AREA -INDUSTRIAL AND TRANSPORTATION 37 CALCULATION OF CURRENT REVENUES BY AREA- PUBLIC AUTHORITY 38 OTHER REVENUES 39 SALES AND TRANSPORT CONTRACT MARGINS 4 AVERAGE BILL COMPARISON- BASE RATES- WTX CITIES ONLY 41 SUMMARY PROOF OF REVENUE- PROSPECTIVE RATES 42 CALCULATION OF PROPOSED REVENUES BY AREA- RESIDENTIAL 43 CALCULATION OF PROPOSED REVENUES BY AREA- COMMERCIAL 44 CALCULATION OF PROPOSED REVENUES BY AREA -INDUSTRIAL AND TRANSPORTATION 45 CALCULATION OF PROPOSED REVENUES BY AREA- PUBLIC AUTHORITY 46 RATE DESIGN WP J-1 WP J.::1J. WP J-1.2 WP J-1.3 WP J-1_4 WP J-2 WP J-2.1 WP J-3 WP J-4 WP J-4.1 WP J-4.2 WP J-4_3 WP J-4_4 WP J-5 Table of Contents Page 3 of3

26 File Date: March 3, 218 REVENUE REQUIREMENTS TEST YEAR ENDING DECEMBER 31, 217 Current Proposed Proposed Line No. Description Reference Revenues Revenues (1) (;hange Percent Change (a) (b) (c) (d) (e) (f) Residential Commercial Industria! and Transportation Public Authority Other Revenue Total Base Revenue 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 Change- Prospective Rates Systemwide Amortization of Excess Accumulated Deferred Income Taxes Proposed Cost of Service -Systemwide Adjusted for Excess AD IT Proposed Change- WTX Cities Workpapers J-1 and J-4 Workpapers J-1 and J-4 Workpapers J-1 and J-4 Workpapers J-1 and J-4 Workpaper J-2 Sum Ln 1 through Ln 5 Schedule F-1 Schedule F-5 Schedule F-3 Schedule F-7 Schedule B Schedule G Col (c), Ln 17 x Ln 18 Schedule F-6 Col (d), Sum ofln 9 through Ln 21 Col (c), Ln 6 Col (d), Ln 23 minus Ln 24 WP_B-6.1 Ln26-Ln28 WP _J-4.1 through WP _J Note: Proposed Revenues are the result of the application of the proposed rates to billing determinants. 83,183,63 22,248,196 2,921,879 5,389,896 3,41, ,785,146 55,692, % - _1 9,227,617 24,82,675 3,7,91 5,8,469 3,41,572 6,279,424 41,891,698 8,9,747 29,77,273 26,97 4,3,875 8,897,517 8,927,16 116,785,146,141,871 2,647,939 9,493,931 4,29,967 7,44,14 1,834,479 25,2 41,573 9,494, % 8.25% 7.2% 7.62%.% 8.13% Schedule A Page 1 of 1

27 File Date: March 3, 218 RATE BASE TEST YEAR ENDING DECEMBER 31, 217 Line No. Amount per Description Reference Books (a) (b) (c) Adjustment (d) Total Requested (e)- (c)+ (d) Net Plant (1): Gross Plant Schedule C 781,311,27 Accumulated Depreciation ScheduleD 162,18,877 Total Net Plant (ln 2 - Ln 3) 619,292,33 Additions: Gas Stored -Current WP_B-3 9,897,616 Materials & Supplies WP_B-3 84,315 Prepayments WP_B-4 2,276,61 Pension and Other Postemployment Benefits Regulatory Asset WP_B-7.1 {2,331,636) Total Additions (Sum Ln 7 through Ln 1) 9,926,96 Deductions: Customer Deposits WP_B 5 2,956,777 Customer Advances for Construction WP_B-5 Injuries and Damages Reserve WP_B 2 887,155 Accumulated Deferred Income Taxes WP_B 6 72,715,983 Regulatory Liability (Account 253, Sub-Account 2799) (2) WP _B 6.1,6.2 63,55,538 Rate Base Adjustments WP _B 1 Total Deductions (Sum Ln 14 through Ln 19) 14,11,453 Total Cash Working Capital Schedule E Total Rate Base (ln 4 + Ln 11 - Ln 2 + Ln 22) 489,18,783 11,643, ,955,64 (15,88) 161,9,998 11,749, ,42,67 {2,15,562) 7,882,54 (1,72) 83,243 (43,719) 2,232,892 () (2,331,636) {2,6,353) 7,866,553-2,956,777 (464,67) 422,548 (9,432,941) 63,283,42 (1,323,97) 62,226, ,97 389,97 (1,831,548) 9,278,95 {3,937,656) {3,937,656) 16,583,276 55,692,59 Notes: 1. Rate Base excludes SSU projects previously disallowed and includes other known and measurable adjustments. 2. The Regulatory Liability represents the excess defered income taxes resulting from the revaluation of AD IT due to the Tax Cuts and Jobs Act. Schedule B Page 1 of 1

28 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 Line No. Description (a) Amounts (b) 1 GUD Nos. 141, 184, 185 Amortization of Employee Expenses- Unincorporated Areas (WP_B-1.1) 2 GUD No Amortization of Employee Expenses, TYE March 31, 2 (WP_B-1.2) (1) 3 City Settled SOl Amortization of Employee Expenses, TYE June 3, 213 (WP_B-1.3) (2) WTX Cities RRM Amortization of Employee Expenses, TYE September 3, 214 (WP_B-1.4) (3) WTX Cities RRM Amortization of Employee Expenses, TYE September 3, 215 (WP_B-1.5) (4) WTX Cities RRM Amortization of Employee Expenses, TYE September 3, 216 (WP_B-1.6) (5) 7 Employee Expense Adjustment, TYE December 31, 217 (WP_B-1) (6) 8 Employee-Related Expenses not included in Expense Reports (7) 9 Capitalized Severence Pay Adjustment, TYE December 31, 217 (8) 1 Capitalized SSU MIPNPP Incentive Compensation Adjustment, TYE December 31,217 (9) 11 Capitalized SSU LTIP Incentive Compensation Adjustment, TYE December 31, 217 (9) 13 Total (Sum of Lines 1 through ) Notes: In GUD No. 1174, rate base was approved through March 31, The adjustment covers the period of April1, 2 through June 3, The adjustment covers the period of July 1, 213 through September 3, The adjustment covers the period of October 1, 214 through September 3, The adjustment covers the period of October 1, 215 through September 3, See Page 2, Column (f), Ln 17. The adjustment covers the periods October 1, 216- December 31, Other Employee-Related Expenses adjusted beginning January 1, 217 through December 31, 217 for 54 and 9 Series Review Severence Pay voluntarily removed by Company to reduce controversy in this filing Remove Capitalized SSU Incentive Compensation in conformance with RRM Tariff, Section Ill- Calculation, "RI" definition. 317,431 19,274 16,892 5,235 5,16 15,39 1, ,97 WP _B-1 Page 1 of 2

29 File Date: March 3, 218 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 Line No. Shared Services- Shared Services - Customer General Office Description Support () (2) (a) (b) (c) WTX Direct (d) WTX General Office (e) Total Adjustment (f) Twelve Months Ended December 31,217 Employee Expense Adjustment WTX General Office Allocation Factor (1) (2) 9.67% 6.54% WTX Direct Allocation Factor (1) (2) 99.9% 96.21% Allocated Employee Expense Totals (Ln 2 x Ln 3 x Ln 4) Capitalization Factor (2) (3) 13.97% 3.72% Subtotal (Ln 5 x Ln 6) - Add Charges Direct to Capital: Employee Expense Adjustment (January 1, 217- December 31, 217) - Employee Expense Adjustment (October 1, 216- December 31, 216) Subtotal (Ln 1 + Ln 11) - WTX General Office Allocation Factor (1) (2) 9.67% 6.54% WTX Direct Allocation Factor (1) (2) 99.9% 96.21% Allocated Employee Expense Totals (Ln x Ln 13 x Ln 14) Total For the Period Ended December 31, 217 (Ln 7 + Ln 15) Notes: 1. See WP _F-2.1, Col (b) and Col (c), Ln 7 and Ln 8, as applicable, for the Shared Services factors, as adjusted. 2. West Texas direct costs are directly charged and not allocated. 3. For Columns (b) and (c), see WP _F-2.1, Ln 15, [1 -Col (b)], [1-Col (c)]. 1.% 96.21%.%.% 1.% 96.21% WP _B-1 Page2 of2

30 File Date: March 3, 218 WEST TEXAS CITIES (""WTX CITIES'') RATE REVIEW MECHANISM GUO NOS. 141, 184, 185 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEUDLE Line No. Beginning of Year End of Year Rate Base Rate Base Year Ended Adjustment Annual Adjustment Dec. 31 Amount Amortization (1) Amount(2) (a) (b) (c) (d) Balance as of December 31, 217 (e) , ,597 13,39 397, ,287 13,39 383, ,978 13,39 37, ,668 13,39 357, ,359 13,39 344, ,49 13,39 33, ,74 13, ,39 34, ,1 13,39 29, ,8 13,39 277, ,52 13,39 264, ,193 13,39 25, ,883 13,39 237, ,574 13,39 224, ,264 13,39 21, ,955 13,39 197, ,645 13,39 184, ,336 13,39 171, ,27 13,39 157, ,717 13, ,39 131, ,98 13,39 117, ,789 13, ,39 91, ,17 13,39 77, ,86 13,39 64, ,551 13,39 51, ,241 13,39 37, ,932 13,39 24, ,622 13,39 11, ,313 11,313 Notes: The annual amortization is calculated based upon the same period reflected in 36 GUO No. 967, an Atmos Energy Corp., Mid-Tex Division case, Schedule B, Page 2, 37 Footnote 1 {3.85 years) The December 31, 21 amount is per the Unincorporated Summary found in 4 relied file, "WP_B-1.1 thru B-1.6_Emp Exp Amortization.xlsx" * Totals may vary due to rounding. 317,431 WP_B-1.1 Page 1 of 1

31 File Date: March 3,218 GUO 1174 RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEDULE Line No. Year Ended Sep. 3 (a) Beginning of Year End of Year Rate Base Rate Base Adjustment Annual Adjustment Amount Amortization 11} Amount(2) (b) (c) (d) Balance as of December 31, 217 (e) ,171 24, ,388 23, ,64 22, ,821 21, ,37 21, ,254 2, ,47 19, ,687 18, ,93 17, , 17, ,336 16, ,553 15, ,769 14, ,986 13, ,22 13,22 784,419, ,635 11, ,852 1, ,68 1, ,285 9, ,51 8, ,718 7, ,934 6, ,151 6, ,367 5, ,584 4, ,8 3, ,17 3, ,233 2, ,45 1, ,274 _tj_p_@ ;_ The annual amortization is calculated based upon the same period reflected in 36 GUO No. 967, an Atmos Energy Corp., Mid-Tex Division case, Schedule B, Page 2, 37 Footnote 1 {3.85 years) The September 3, 211 amount is per the GUO No Employee Expense 4 Rate Base Adjustment found in relied file, "WP_B-1.1 thru B-1.6_Emp Exp Amortization.xlsx" * Totals may vary due to rounding. WP_B-1.2 Page 1 of 1

32 File Date: March 3, 218 CITY SETTLED SOl RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEDULE Line No. Beginning of Year End of Year Rate Base Rate Base Year Ended Adjustment Annual Adjustment Jun. 3 Amount Amortization (1) Amount (2) (a) (b) (c) (d) Notes: , , , , , , , , , , , , , , , , , , , , , , , , ,84 226, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Balance as of December 31, 217 (e) 16,892 WP_B-1.3 Page 1 of 1

33 File Date: March 3,218 CITY SETTLED SOl RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEDULE' Line No. Beginning of Year End of Year Rate Base Rate Base Balance as of Year Ended Adjustment Annual Adjustment December 31, Sep. 3 Amount Amortization (1) Amount (2) 217 (a) (b) (c) (d) (e) ,852 5,662 5,472 5,283 5,93 4,93 4,714 4,524 4,334 4,145 3,955 3,765 3,576 3,386 3,196 3,6 2,817 2,627 2,437 2,248 2,58 1,868 1,679 1,489 1,299 1, , , , , , , , , , , , , , , ,6 19 2, , , , , , , , , , Notes: The annual amortization is calculated based upon the same period reflected in 36 GUO No. 967, an Atmos Energy Corp., Mid-Tex Division case, Schedule B, Page 2, 37 Footnote 1 (3.85 years) The September 3,214 amount is per the 214 WTX RRM Filing Employee Expense 4 Rate Base Adjustment found in relied file, "WP_B-1.1 thru B-1.6_Emp Exp Amortization.xlsx" " Totals may vary due to rounding. 5,235 WP _B-1.4 Page 1 of 1

34 File Date: March 3, 218 CITY SETTLED SOl RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEDULE Year Ended Sep. Line No. 3 (a) Beginning of Year Rate Base Adjustment Amount (b) Annual Amortization {1) (c) End of Year Rate Base Adjustment Amount (2) (d) Balance as of December 31, 217 (e) ,411 5,235 4,885 4,79 4,534 4,358 4,183 4,8 3,832 3,657 3,481 3,36 3,131 2,955 2,78 2,64 2,429 2,254 2,78 1,93 1,728 1,552 1,377 1,21 1, ,411 5,235 5,6 4,885 4,79 4,534 4,358 4,183 4,8 3,832 3,657 3,481 3,36 3,131 2,955 2,78 2,64 2,429 2,254 2,78 1,93 1,728 1,552 1,377 1,21 1, Notes: WP_B-1.5 Page 1 of 1

35 File Date: March 3, 218 CITY SETTLED SOl RATE BASE ADJUSTMENTS TEST YEAR ENDING DECEMBER 31, 217 AMORTIZATION SCHEDULE Year Ended Sep. Line No. 3 (a) Beginning of Year Rate Base Adjustment Amount (b) Annual Amortization (1) (c) End of Year Rate Base Adjustment Amount(2) (d) Balance as of December 31, 217 (e) , , , , , 15, , 52 14, , , , , ,44 52,92 223,92 52,4 224, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,1 52 4, , , , , , ,Q , , , ,2 52 1, , Notes: The annual amortization is calculated based upon the same period reflected in 36 GUO No. 967, an Atmos Energy Corp., Mid-Tex Division case, Schedule 8, Page 2, 37 Footnote 1 (3.85 years) The September 3, 216 amount is per the 216 wrx RRM Filing Employee Expense 4 Rate Base Adjustment found in relied file, "WP_B-1.1 thru B-1.6_Emp Exp Amortization.xlsx" * Totals may vary due to rounding. WP _B-1.6 Page 1 of 1

36 File Date: March 3, 218 INJURIES AND DAMAGES RESERVES (1) TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas Per Book Adjusted General Office Amount Adjustments (2) Amount Allocation Factor (b) (c) (d) (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) 1 West Texas Direct: 2 December 31, January 31,217 4 February 28, March 31,217 6 April 3, May 31, June 3, July 31,217 1 August 31, September 3, 217 October31, November 3, December31, 217-1% - 1% - 1% - 1% - 1% 1% 1% 1% - 1% - - 1% - 1% - - 1% - 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% WP_B-2 Page 1 of4

37 File Date: March 3, 218 INJURIES AND DAMAGES RESERVES (1) TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas Per Book Adjusted General Office Amount Adjustments (2) Amount Allocation Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) 15 WTX General Office (Div 1 }: 16 December 31, January 31, February 28, March 31, April 3, May 31, June 3, July 31, August 31, September 3, October 31, November 3, December31, , ,635 1% 478,68 478,68 1% 479, ,635 1% 497, ,629 1% 499,63 499,63 1% 488, ,979 1% 52,432-52,432 1% 5,731 5,731 1% 54,797-54,797 1% 59,74 59,74 1% 498, ,887 1% 492, ,313 1% 418, ,693 1% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 465, , , ,78 48,159 47, ,41 481, , , ,99 473,665 42,834 WP_B-2 Page 2 of 4

38 File Date: March 3, 218 INJURIES AND DAMAGES RESERVES (1) TEST YEAR ENDING DECEMBER 31,217 Line No. Month\Year Ending (a) West Texas Per Book Adjusted General Office Amount Adjustments (2) Amount Allocation Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) 29 SSU General Office {Div 2}: 3 December 31, January 31, February 28, March 31, April 3, May 31, June 3, July 31, August31, September 3, October 31, November 3, December 31,217 8,287,429 (7,988, 17) 299, % 8,291,548 (7,988, 17) 33, % 8,297,459 (7,988, 17) 39, % 6,296,88 (5,988, 17) 37, % 6,299,469 (5,988, 17) 311, % 6,33,284 (5,988, 17) 315, % 5,299,6 (4,988,17) 31, % 5,29,566 (4,988,17) 32, % 6,89,946 (5, 788, 17) 31, % 7,698,771 (7,383,771) 315, 6.54% 7,75,166 (7,383,771) 321, % 7,71,67 (7,383,771) 317, % 7,697,75 (7,383,771) 313, % 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 18,83 19,89 19,461 19,375 19,588 19,828 19,562 19,28 18,989 19,821 2,223 19,965 19,714 WP_B-2 Page 3 of4

39 File Date: March 3, 218 INJURIES AND DAMAGES RESERVES (1) TEST YEAR ENDING DECEMBER 31, 217 Line No. West Texas Per Book Adjusted General Office Month\Y ear Ending Amount Adjustments (2) Amount Allocation Factor (a) (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e )*(f) SSU Customer SU[![!Ort {Div }: December31, % January 31, % February 28, % March 31, % April 3, % May 31, % June 3, % July 31, % August 31, % September 3, % October31, % November 3, % December31, % Total West Texas at December 31, 217 (Col (g)= (Ln 14 + Ln 28 + Ln 42 + Ln 56)) 887, % 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% Notes: 1. Account and sub accounts 2811 and The adjustment amounts in Column (c) for Division 2 remove SSU reserves not allocated to the divisions, sub account ,548 WP_B-2 Page4 of4

40 File Date: March 3, 218 MATERIALS & SUPPLIES & UNDERGROUND STORAGE TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas General Office Per Book Adjusted Allocation Amount Adjustments Amount Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e )*(f) 1 Materials & Supplies- Accts. 154 & 163: 2 West Texas Direct: 3 December 31, 216 (31,761) (31,761) 1% 4 January 31,217 (35,174) (35, 174) 1% 5 February 28, 217 (47,28) (47,28) 1% 6 March 31,217 (58,928). (58,928) 1% 7 April 3, 217 (65,898). (65,898) 1% 8 May 31,217 (78,4). (78,4) 1% 9 June 3, 217 (89,582) (89,582) 1% 1 July 31,217 (99,584). (99,584) 1% 11 August 31,217 (111,787) (111,787) 1% September 3, 217 (2,335). (2,335) 1% 13 October 31,217 (1,74). (1, 74) 1% 14 November 3, 217 (19,37) (19,37) 1% 15 December31, 217 (29,447) (29,447) 1% Month Average (61,485) (61,485) 18 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% (31,761) (35, 174) (47,28) (58,928) (65,898) (78,4) (89,582) (99,584) (111,787) (2,335) (1, 74) (19,37) (29,447) (61,485) WP_B-3 Page 1 of 3

41 File Date: March 3, 218 MATERIALS & SUPPLIES & UNDERGROUND STORAGE TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas General Office Per Book Adjusted Allocation Amount Adjustments Amount Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) WTX General Office {Div 1}: December 31, 216 1,562 1,562 1% January 31,217 2,874 2,874 1% February 28, , ,375 1% March 31,217 15,844-15,844 1% April 3, ,38 16,38 1% May 31,217 17,494 17,494 1% June 3, ,664 18,664 1% July 31,217 19,333-19,333 1% August 31, 217 2,95-2,95 1% September 3, ,297 21,297 1% October31, ,884 97,884 1% November 3, ,98 17,98 1% December 31, , ,241 1% 13-Month Average 15,426 15,426 Total West Texas System at December31, 217 (Ln 15 + Ln 32) Total West Texas System 13-Month Average (Ln 17 + Ln 34) 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 18, ,22 7, ,13 153, ,36 173, ,4 193,338 22,331 94,176 13,89 113, ,728 84,315 83,243 WP_B-3 Page 2 of 3

42 File Date: March 3, 218 MATERIALS & SUPPLIES & UNDERGROUND STORAGE TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas General Office Per Book Adjusted Allocation Amount Adjustments Amount Factor (b) (c) (d)- (b)+ (c) {e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) 4 Underground Storage- Acct 164.1: 41 West Texas Direct: 42 December 31, 216 7,817,893 7,817,893 1% 43 January 31,217 5,562,27 5,562,27 1% 44 February 28, 217 4,13,411-4,13,411 1% 45 March 31, 217 3,481,682 3,481,682 1% 46 April 3, 217 4,456,116 4,456,116 1% 47 May 31,217 5,69,75 5,69,75 1% 48 June 3, 217 6,974,37-6,974,37 1% 49 July 31,217 8,562,14 8,562,14 1% 5 August 31,217 9,967,532-9,967,532 1% 51 September 3, ,26,77-11,26,77 1% 52 October 31, 217,543,896,543,896 1% 53 November 3, 217,23,59,23,59 1% 54 December 31,217 9,897,616 9,897,616 1% Month Average 7,882, ,882,,.Q 4. 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 7,817,893 5,562,27 4,13,411 3,481,682 4,456,116 5,69,75 6,974,37 8,562,14 9,967,532 11,26,77,543,896,23,59 9,897,616 7,882,54 WP_B-3 Page 3 of 3

43 File Date: March 3, 218 PREPAYMENTS TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas General Office Per Book Adjusted Allocation Amount Adjustments (1) Amount Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e )*(f) 1 Prepayments- Acct. 165: 2 West Texas Direct: 3 December 31,216 4 January 31, February 28, March 31,217 7 April 3, May 31, June 3, July 31, August 31,217 September 3, October 31, November 3, December 31, Month Average 18-1% - 1% 1% - 1% 1% 46,85 (46,85) 1% 46,85 (46,85) - 1% 46,85 (46,85) 1% 46,85 (46,85) 1% 31,233 (31,233) - 1% 15,617 (15,617) 1% 1% 1% 18,19 (18,19) - 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% WP_B-4 Page 1 of4

44 File Date: March 3, 218 PREPAYMENTS TEST YEAR ENDING DECEMBER 31,217 West Texas General Office Line Per Book Adjusted Allocation No. Month\ Year Ending Amount Adjustments (1) Amount Factor (a) (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)-( d)*( e )*(f) 19 WTX General Office {Div 1}: 2 December 31,216 () () 1% 21 January 31, 217 6,17 6,17 1% 22 February 28, 217 3,53-3,53 1% 23 March 31,217 () () 1% 24 April 3, 217 (526,656) - (526,656) 1% 25 May 31, ,971-52,971 1% 26 June 3, ,582 25,582 1% 27 July 31, , ,757 1% 28 August 31, , ,855 1% 29 September 3, ,55-17,55 1% 3 October 31, ,62 399,62 1% 31 November 3, , ,485 1% 32 December 31, 217 8,527 8,527 1% Month Average 187, , % 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% () 577, ,688 () (56,78) 51,238 24, , ,444 16,49 384,484 29,247 8,24 18,91 WP_B-4 Page 2 of4

45 File Date: March 3, 218 PREPAYMENTS TEST YEAR ENDING DECEMBER 31,217 Line No. MonthlY ear Ending (a) West Texas General Office Per Book Adjusted Allocation Amount Adjustments (1) Amount Factor (b) (c) (d)- (b)+ (c) (e) WTX Direct Allocation Factor (f) Allocated Amount (g)=( d)*( e )*(f) 36 SSU General Office {Div 2}: 37 December 31, January 31, February 28, March 31, April 3, May 31, June 3, July 31, August 31, September 3, October 31, November 3, December 31, Month Average 33,944,542 33,944, % 32,452,354 32,452, % 28,243,166 28,243, % 31,839,499 31,839, % 29,643,34 29,643, % 31,33,18 31,33, % 27,599,696 27,599, % 26,84,727 26,84, % 24,32,452 24,32, % 22,258,537 22,258, % 33,153,472 33,153, % 34,859,434 34,859, % 32,616,696 32,616, % 29,98,72 29,98, % 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 96.21% 2,135,884 2,41,992 1,777,138 2,3,429 1,865,241 1,952,683 1,736,649 1,688,893 1,53,31 1,4,569 2,86,18 2,193,452 2,52,333 1,881, WP_B-4 Page 3 of4

46 File Date: March 3, 218 PREPAYMENTS TEST YEAR ENDING DECEMBER 31,217 West Texas General Office Line Per Book Adjusted Allocation No. MonthlY ear Ending Amount Adjustments (1) Amount Factor (a) (b) (c) (d)- (b)+ (c) (e) WTXDirect Allocation Factor (f) Allocated Amount (g)-( d)*( e)*(f) 53 SSU Customer SU[![!ort {Div }: 54 December 31,216 1,968,32-1,968, % 55 January 31,217 1,848,566 1,848, % 56 February 28, 217 2,174,65 2,174, % 57 March 31,217 1,879,184 1,879, % 58 April 3, 217 1,67,14 1,67, % 59 May 31,217 1,839,555 1,839, % 6 June 3, 217 1,61,328 1,61, % 61 July 31,217 1,598,74 1,598, % 62 August 31, 217 1,399,528 1,399, % 63 September 3, 217 1,36,89-1,36, % 64 October31, , , % 65 November 3, 217 2,583,227 2,583, % 66 December 31, 217 2,236,616-2,236, % Month Average 1,769,4 1,769, December 31, 217 Total (Ln 15 + Ln 32 + Ln 49 + Ln 66) Month Average Total (Ln 17 + Ln 34 + Ln 51 + Ln 68) Note: The Company has voluntarily removed these amounts to reduce controversy. 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 19,6 178,585 21,87 181, , , , ,45 135,25 6,178 91, , ,73 17,92 2,276,61 2,232,892 WP_B-4 Page 4 of4

47 File Date: March 3, 218 CUSTOMER DEPOSITS AND CUSTOMER ADVANCES FOR CONSTRUCTION TEST YEAR ENDING DECEMBER 31, 217 Line No. Month\Year Ending Amount (a) (b) West Texas Direct: Customer Deposits - Acct 235 December 31, 216 3,787,72 January 31,217 3,453,322 February 28, 217 3,349,161 March 31, 217 3,319,398 April 3, 217 3,267,465 May 31, 217 3,213,271 June 3, 217 3,119,639 July 31,217 3,35,13 August 31, 217 2,984,167 September 3, 217 2,923,614 October 31, 217 2,923,768 November 3, 217 2,921,94 December 31, 217 2,956, West Texas Direct: Customer Advances -Ace! 252 December 31, ,799 January 31, ,799 February 28, ,799 March 31, ,799 April 3, ,799 May 31, ,799 June 3, ,799 July 31, ,799 August 31, ,917 September 3, ,353 October 31, ,229 November 3, 217 December 31, 217 WP_B-5 Page 1 of 1

48 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31,217 Assets I Line (Liabilities) - No. Description Per Book Balances (a) (b) Adjustments (3) (c) Assets I (Liabilities) - Adjusted Balances (d) - (b) + (c) 1 West Texas Direct: 2 MIP I VPP Accrual (1,36) 3 Worker's Comp Insurance Reserve 4 FAS 16 Adjustment 5 CWIP (181,46) 6 RWIP (42,689) 7 Fixed Asset Cost Adjustment (73,6,841) 8 Depreciation Adjustment (33,549, 148) 9 Section 481 (a) TPR (244,48) 1 Deferred Gas Costs 2,456,9 11 Over Recoveries of PGA (3,486,25) Customer Advances 32, Deferred Expense Projects (76) 14 Capitalized Selling Expense, Allowance for Doubtful Accounts 249, Charitable Contribution Carryover 17 Prepayments 18 Rate Case Accrual 766,29 19 TX Rule 8.29 Reg Asset Deferral (2,582,915) 2 Regulatory Liability - Atmos Regulatory Liability- 217 Gross Up 14,5, Total West Texas System Direct (Sum Ln 2 through Ln 21) (95,517,422) ,46 (2,456,9) 3,486,25 (249,219) (766,29) (32,9) (1 7,26) (1,36) (42,689) (73,6,841) (33,549, 148) (244,48) 32,937 (76),654 (2,582,915) 14,198,236 (95,624,682) WP_B-6 Page 1 of 5

49 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31,217 Line No. Assets I (Liabilities)- Description Per Book Balances Adjustments (3) (a) (b) (c) Assets I (Liabilities) - Adjusted Balances (d)- (b)+ (c) WTX General Office {Div 1}: Ad Valorum Taxes 131,515 MIP I VPP Accrual (376,315) Self Insurance- Adjustment Vacation Accrual 2,44 Worker's Camp Insurance Reserve 1,331 SEBP Adjustment 373,356 FAS 16 Adjustment 6,817,149 CWIP 7,826 (7,826) RWIP (1,457) Fixed Asset Cost Adjustment {4,438,921) Depreciation Adjustment 584,952 Section 481 (a) TPR 37,87 Deferred Gas Costs (953,144) 953,144 Over Recoveries of PGA (288,748) 288,748 Customer Advances (39,732) Deferred Expense Projects {8,295) Capitalized Selling Expense UN I CAP Section 263A Costs 198, (a) UN I CAP Allowance for Doubtful Accounts (39,483) 39,483 Clearing Account - Adjustment Charitable Contribution Carryover 43,863 (43,863) Prepayments (49,624) Rate Case Accrual (773,53) 773,53 WACOG to FIFO Adjustment 38,858 Reg Asset Benefit Accrual (6,298) 131,515 (376,315) 2,44 1, ,356 6,817,149 (1,457) {4,438,921) 584,952 37,87 (39, 732) {8,295) 198,86 (49,624) 38,858 (6,298) WP_B-6 Page 2 of 5

50 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31,217 Assets I Line (Liabilities) - No. Description Per Book Balances Adjustments (3) (a) (b) (c) 51 TX Rule 8.29 Reg Asset Deferral (51,471) 52 Intra Period Tax Allocation (432,288) 432, Regulatory Liability- Atmos Subtotal (Sum Ln 25 through Ln 53) 54,877 2,315,54 55 WTX General Office Allocation Factor 1% 1% 56 West Texas Direct Allocation Factor 96.21% 96.21% 57 Total WTX General Office Allocated to West Texas Direct (Ln 54 X Ln 55 X Ln 56) 485,753 2,227, Total West Texas Direct (Ln 22 + Ln 57) (95,31,669) 2,, SSU Customer Suggort (Div }: 62 MIP I VPP Accrual (531,43) 63 Vacation Accrual 6, Worker's Camp Insurance Reserve 65 FAS 16 Adjustment 66 CWIP (468,235) 468, RWIP (86) 68 Fixed Asset Cost Adjustment (23,662,64) 69 Depreciation Adjustment 6,896,689 7 Clearing Account - Adjustment 71 Charitable Contribution Carryover 72 Prepayments (298,1 ) 73 Intra Period Tax Allocation 74 Total (Sum Ln 62 through Ln 73) (18,56,781) 468, WTX General Office Allocation Factor 9.67% 9.67% 76 West Texas Direct Allocation Factor 99.9% 99.9% 77 SSU Customer Support Allocated to West Texas (Ln 74 x Ln 75 x Ln 76) (1,744,416) 45,235 Assets I (Liabilities)- Adjusted Balances (d)- (b)+ (c) (51,471) 2,82,381 1% 96.21% 2,713,55 (92,911 '132) (531,43) 6,868 (86) (23,662,64) 6,896,689 (298,1 ) (17,588,546) 9.67% 99.9% (1,699,181) WP_B-6 Page 3 of 5

51 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Line No. Assets I (Liabilities) - Assets I (Liabilities) - Description Per Book Balances Adjustments (3) Adjusted Balances (a) (b) (c) (d)= (b)+ (c) SSU General Office (Div 2): 8 Directors Deferred Bonus,396, MIP I VPP Accrual (1,299,225) (1,299,225) 82 Miscellaneous Accrued 83 Self Insurance- Adjustment 1,684,755 (1,684,755) 84 Vacation Accrual 9,496 9, Worker's Camp Insurance Reserve 72,398 72, SEBP Adjustment 17,158,149 17,158, Restricted Stock Grant Plan 865, , Rabbi Trust 91,834 91, Restricted Stock - MIP 8,63,729 8,63,729 9 Director's Stock Awards 4,34,733 4,34, Pension Expense (7,457,49) (7,457,49) 92 FAS 16 Adjustment 5,799,14 5,799,14 93 CWIP (55,78) 55,78 94 RWIP (2,47) (2,47) 95 Fixed Asset Cost Adjustment (21,446,248) (21,446,248) 96 Depreciation Adjustment 4,98,373 4,98, Section 481 (a) Cushion Gas 343,37 (343,37) 98 Section 481 (a) Line Pack Gas 41,663 (41,663) 99 Deferred Expense Projects 1 Allowance for Doubtful Accounts 1 (1) 11 Clearing Account- Adjustment (9,68) (9,68) Charitable Contribution Carryover 4,737,632 (4,737,632) 13 Prepayments (3,943,76) (3,943,76) 14 Stock Option Expense 15 Federal & State Tax Interest 455, , VA Charitable Contributions WP_B-6 Page4 of5

52 File Date: March 3, 218 ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31,217 Line No. Assets I (Liabilities) - Description Per Book Balances Adjustments (3) (a) (b) (c) Assets I (Liabilities) - Adjusted Balances (d) - (b) + (c) Intra Period Tax Allocation (1,737,96) Regulatory Liability - Atmos 19 FD- NOL Credit Carryforward- Non Reg (154,641,288) 154,641,288 FD - NOL Credit Carryforward - Utility 48,66,663 FD - NOL Credit Carryforward - Other 4,981,246 (4,981,246) FD- FAS 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 (Sum Ln 8 through Ln 119) 382,375, ,493,52 WTX General Office Allocation Factor 6.54% 6.54% West Texas Direct Allocation Factor 96.21% 96.21% SSU General Office Allocated to West Texas (Ln xln 1 xln 2) 24,6,11 7,267,17 Total SSU ADIT Allocated to West Texas (Ln 77 + Ln 3) 22,315,685 7,3,45 Grand Total West Texas ADIT (Ln 59+ Ln 5) (72,715,983) 9,432,941 Notes: 1. Includes FERC Accounts 19, 282 and Credit amounts are in parentheses. 3. Adjustments are for those items not included in rate base for ratemaking purposes (1,737,96) 48,66,663 (2,497,45) 14,645, ,868, % 96.21% 31,327,271 29,628,9 (63,283,42) WP_B-6 Page 5 of 5

53 File Date: March 3, 218 AMORTIZATION OF REGULATORY LIABILITY TEST YEAR ENDING DECEMBER 31,217 Line No 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) ,55, ,55,538 2,647,939 6,92, ,92,599 2,647,939 58,254, ,254,66 2,647,939 55,66, ,66,721 2,647,939 52,958, ,958,782 2,647,939 5,31, ,31,843 2,647,939 47,662, ,662,94 2,647,939 45,14, ,14,965 2,647,939 42,367, ,367,25 2,647,939 39,719, ,719,86 2,647,939 37,71, ,71,147 2,647,939 34,423, ,423,28 2,647,939 31,775, ,775,269 2,647,939 29,7, ,7,33 2,647,939 26,479, ,479,391 2,647,939 23,831, ,831,452 2,647,939 21,183, ,183,513 2,647,939 18,535, ,535,574 2,647,939 15,887, ,887,635 2,647,939 13,239, ,239,695 2,647,939 1,591, ,591,756 2,647,939 7,943, ,943,817 2,647,939 5,295, ,295,878 2,647,939 2,647, ,647,939 2,647,939 () 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) 63,55,538 WP _B-6.1 Page 1 of 1

54 File Date: March 3, 218 MIDPOINT OF REGULATORY LIABILITY TEST YEAR ENDING DECEMBER 31, 217 Line No End of Month Rate Base Beginning Month Monthly Adjustment Month Balance Amortization (1) Amount (2) (a) (b) (c) (d) September-18 63,55,538 October-18 63,55,538 22,662 63,329,877 November-18 63,329,877 22,662 63,19,215 December-18 63,19,215 22,662 62,888,553 January-19 62,888,553 22,662 62,667,892 February-19 62,667,892 22,662 62,447,23 March-19 62,447,23 22,662 62,226,569 April-19 62,226,569 22,662 62,5,97 May-19 62,5,97 22,662 61,785,245 June-19 61,785,245 22,662 61,564,584 July-19 61,564,584 22,662 61,343,922 August-19 61,343,922 22,662 61,3,261 September-19 61,3,261 22,662 6,92,599 WP_B-6.2 Page 1 of 1

55 File Date: March 3, 218 PENSION AND OTHER POST EMPLOYMENT BENEFITS REGULATORY ASSET TEST YEAR ENDING DECEMBER 31,217 Line No. Description (a) Amounts (b) 1 Summarization of Pension and Other Postemployment Benefits Regulatory Asset: Pension Asset at December 217 Total Pension and Other Postemployment Benefits Regulatory Asset (Sum of Line 3) Summarization of Pension and Other Postemployment Benefits Asset Amortization: Pension Asset Amortization- Calculated (Pension Asset Amount/ 1 years) (1) Pension Asset Amortization- Per Book Amount from October 1, 216 through the end of the Test Year Pension Asset Amortization Adjustment (Line 9 plus Line 11) (2) (3) (1,897,469) (1,897,469) (189,747) (1,44) (32, 187) Notes: The annual recorded amortization of the Pension and Other Postemployment Benefits Regulatory Asset cost is included in O&M 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 the existing deferred amounts through the end of the amortization period. Future additions or reductions to the deferral will be expense only 19 amounts. The capital component will be recorded to utility plant through the overhead process. WP_B-7 Page 1 of 1

56 File Date: March 3, 218 PENSION AND OTHER POST EMPLOYMENT BENEFITS REGULATORY ASSET SUMMARY TEST YEAR ENDING DECEMBER 31,217 Line No. Time Period (a) Description (b) Amount Per Period (c) Total Amount (d) 1 Total Asset Amount- By Period {1): October 1, 2- June 3, 213 July 1, 213- September 3, 213 October 1, 213- March 31, 214 April1, 214- September 3, 214 October 1, 214- March 14,215 March 15, 215- September 3, 215 October 1, 215- March 14,216 March 15,216- September 3, 216 October 1, 216- March 14,217 March 15,217- September 3, 217 October 1, 217- December 31,217 Total Asset Amortization- By Period (2): October 1, 2- September 3, 213 October 1, 213- September 3, 214 October 1, 214- September 3, 215 October 1, 215- September 3, 216 October 1, 216- December 31, 217 This asset was approved in the 213 WTX Statement of Intent (TME June 3, 213) and represents the difference between the GUO No benchmark and the FY13 Towers Watson Actuarial Report. This asset amount represents the difference between the GUO No benchmark and the FY13 Towers Watson Actuarial Report. This asset amount represents the difference between the GUO No benchmark and the FY14 Towers Watson Actuarial Report. This asset amount represents the difference between the 213 WTX Statement of Intent (fme June 3, 213) benchmark and the FY14 Towers Watson Actuarial Report. This asset amount represents the difference between the 213 WTX Statement of Intent (fme June 3, 213) benchmark and the FY15 Towers Watson Actuarial Report. This asset amount represents the difference between the 214 WTX Cities RRM Settlement benchmark and the FY15 Towers Watson Actuarial Report. This asset amount represents the difference between the 214 WTX Cities RRM Settlement benchmark and the FY16 Towers Watson Actuarial Report. This asset amount represents the difference between the 215 WTX Cities RRM Settlement benchmark and the FY16 Towers Watson Actuarial Report. This asset amount represents the difference between the 215 WTX Cities RRM Settlement benchmark and the FY17 Towers Watson Actuarial Report. This asset amount represents the difference between the 216 WTX Cities RRM Settlement benchmark and the FY17 Towers Watson Actuarial Report. This asset amount represents the difference between the 216 WTX Cities RRM Settlement benchmark and the FY18 Towers Watson Actuarial Report. Total Asset Values at December 31, 217 (Sum of Ln 3 through Ln 13) No amortization was recorded in Fiscal Year 213 Amortization recorded in Fiscal Year 214 Amortization recorded in Fiscal Year 215 Amortization recorded in Fiscal Year 216 Amortization recorded for 15 months through Calendar Year 217 Total Asset Amortization at December 31, 217 (Sum of Ln 19 through Ln 23) Net Asset Amount at December 31, 217 (Ln 15 + Ln 25} 29 Notes: 3 1. The Company has included in rate base, as a regulatory asset, the Company's calculation of the Pension and Other Postemp!oyment Benefits cost in accordance with 31 TEX. UTILITIES CODE, SECTION The annual amortization of the Pension and Other Postemployment Benefits Regulatory Asset cost is included in O&M expense on Schedule F-1. The annual amortization 33 is based on a ten year amortization period. 1,183,77 394, ,652 (13,644) (323,257) (382,3) (822,388) (551,373) (56,661) (67,23) (446,814) (59,185) (133,594) (8,948) (1,44) (1,897,469) (434,167) (2,331,636) WP_B-7.1 Page 1 of 1

57 File Date: March 3, 218 COMPONENTS OF RATE BASE- GROSS PLANT TEST YEAR ENDING DECEMBER 31, 217 Line Utility No. Account Account Descri~tion (a) (b) Per Books Adjusted Plant Balance Adjustments (1} Plant Balance (C) (d) (e)- (c) +(d) West Texas General Office Allocation Factor 1n WTX Direct Allocation Factor (g) Allocated Plant Balance (h)- (e) (fj (g) West Texas Direct: 2 Distribution Plant Land Land Rights Structures & Improvements Structures- Frame Structures - Land Rights Improvements Mains - Cathodic Protection Mains - Steel Mains- Plastic 377. Compressor Station Equipment M&R Station Equipment- General M&R Station Equipment- City Gate Services Meters Meter installations House Regulators House Regulator Installations Industrial M&R Station Equipment Other Property on Customers' Premises Other Equipment 23 Total (Sum Ln 3 through Ln 22} , , , ,66 321,35 321,35 6,154 6,154 2,74 2,74 23,347 23,347 55,27, ,23 55,371,886 7,595,72 2,246,859 9,842, ,65,1 5,613, ,218, ,93 217,93 18,17,71 175,13 18,192,84 4,26,179 8,79 4,34,888 14,344,443 1,276, ,621,97 54,299,359 1,325,31 55,624,669 53,673,13 926,21 54,599,151 1,446,647 21,418 1,648,65 1,168,265 1,168,265 2,153,695 5,73 2,159,398 24,218 24,218 1,595,475 1,595, ,892 3, ,44,176 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1 /o 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 117, ,66 321,35 6,154 2,74 23,347 55,371,886 9,842, ,218, ,93 18,192,84 4,34, ,621,97 55,624,669 54,599,151 1,648,65 1,168,265 2,159,398 24,218 1,595, ,44,176 Schedule C Page 1 of 5

58 File Date: March 3, 218 COMPONENTS OF RATE BASE~ GROSS PLANT TEST YEAR ENDING DECEMBER 31, 217 Line Utility Per Books Adjusted No. Account Account DescriE:tion Plant Balance Adjustments (1) Plant Balance (a) (b) (c) (d) (e) - (c)+ (d) West Texas General Office Allocation Factor (fj WTXDirect Allocation Factor (g) Allocated Plant Balance (h)= (e) (D (g) 25 General Plant Franchises & Consents 4,264 4, Land & Land Rights 1,993,192 1,993, Structures & Improvements 8,67,53 (44,63) 8,625, Structures~ Frame 5,867,18 5,867, Structures~ Brick 2,629,111 2,629, Improvements 74,96 74, Air Conditioning Equipment 52,92 52, lmprovments to Leased Premises 1,776,97 1,776, Office Fumiture & Equipment 1,818,939 (31,22) 1,787, Transportation Equipment 375, , Stores Equipment 14,29 14, Tools, Shop, and Garage Equipment 6,61,75 6,61, Laboratory Equipment Power Operated Equipment 914, , Ditchers Backhoes 111, , Welders 4,594 4, Communication Equipment 3,78 3, Te!emetering Equipment Miscellaneous Equipment 5,722,429 5,722, PC Hardware 2,558,662 2,558, PC Software 161, , Total {Sum of Ln 26 through Ln 47) 39,6,863 (75,625) 39,525, Total West Texas System Direct (Ln 23 + Ln 48) 744,521,755,47,66 756,569, % 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 4,264 1,993,192 8,625,9 5,867,18 2,629,111 74,96 52,92 1,776,97 1,787, ,666 14,29 6,61,75 914, ,262 4,594 3,78 5,722,429 2,558, ,117 39,525, ,569,414 Schedule C Page 2 of 5

59 File Date: March 3,218 COMPONENTS OF RATE BASE~ GROSS PLANT TEST YEAR ENDING DECEMBER 31,217 Line Utility Per Books Adjusted No, Account Account Descri[!tion Plant Balance Adjustments {1) Plant Balance (a) (b) (c) (d) (e) (C)+ (d) West Texas General Office WTX Direct Allocation Allocation Factor Factor <n (g) Allocated Plant Balance (h)- (e) (fj (g) 52 WTX General Office fdiv 11: 53 General Plant Land & Land Rights 516, , Structures & Improvements 4,892,471 (68,) 4,824, Office Furniture & Equipment 72,78 (131,732) 57, Transportation Equipment 45,957 45, Tools, Shop, and Garage Equipment 53,938 (,999) 4, Communication Equipment 259, , Mobile Radios 34,247 34, Fixed Radios Tetemetering Equipment 9,61 9, Miscellaneous Equipment 1,377,78 1,377, Servers Hardware 2,947 2, Network Hardware 143, , PC Hardware 3,241,138 3,241, PC Software 59,624 59, Total Texas Division General Office Plant Allocated to WTX System (Sum Ln 54 through Ln 67),257,82 (32,731) 11,955, Total West Texas System Plant (Ln 5+ Ln 68) 756,779,557 11,744, ,524, SSU General Office rdiv 2): 73 General Plant Structures & Improvements 1,411,39 1,411, Improvements to Leased Premises 9,316,1 (481,788) 8,834, Office Furniture & Equipment 5,118,84 (256,28) 4,862, Transportation Equipment 7,5 7, Tools, Shop, and Garage Equipment 76,71 76, Communication Equipment 1,39,344 1,39, Miscellaneous Equipment 136,51 136, Other Tangible Property 162, , Servers Hardware 37,3,946 37,3, Servers Software 19,5,572 19,5, Network Hardware 3,548,953 3,548, PC Hardware 2,458,44 2,458, PC Software 1,473,265 1,473, Application Software 67,214,852 (857,853) 66,356, System Software 39,252 39, Total (Sum Ln 74 through Ln 88) 148,11,398 (1,595,668} 146,415, % 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% /o 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 497,241 4,641, ,742 44, , ,461 32,95 9,238 1,325,523 2, ,539 3,118,369 49,32 11,52, ,71,648 88,89 555,873 35, ,787 65,398 8,59 1,21 2,328,39 1,195, ,31 154,667 92,72 4,175,366 2,47 9,2,882 Schedule C Page 3 of 5

60 File Date: March 3, 218 COMPONENTS OF RATE BASE~ GROSS PLANT TEST YEAR ENDING DECEMBER 31,217 Line Utility Per Books Adjusted No. Account Account Description Plant Balance Adjustments (1) Plant Balance (a) (b) (c) (d) (e) (c)+ (d) West Texas General Office WTX Direct Allocation Allocation Factor Factor ( (g) Allocated Plant Balance (h)- (e) (fj (g) 91 SSU Greenville Data Center (Div 2}: 92 General Plant g Structures & Improvements 9,187,184 9,187, Office Furniture & Equipment 63,741 63, Total (Sum of Ln 93 through Ln 94) 9,25,925 9,25, SSU Distribution & Marketing (Oiv 2}: g8 General Plant gg 39.2 Structures & Improvements Improvements to Leased Premises Office Furniture & Equipment 263,338 (75,271) 188, Tools, Shop, and Garage Equipment Communication Equipment 8,824 8, Miscellaneous Equipment 7,388 7, Servers Hardware 1,628,9 1,628, Servers Software 961, , Network Hardware 6,17 6, PC Hardware 314, , Application Software 2,675,91 2,675,91 11 Total (Sum of Ln 99 through Ln 19) 23,92,166 (75,271) 23,844, SSU Aligne Pige Proiect (Div 2}; 113 G~neral Plant Servers Hardware 297, , Servers Software 345,73 345, Application Software 17,517,14 17,517, Total (Sum of Ln 114 through Ln 116) 18,16,11 18,16, Total SSU General Office (Ln 89 + Ln 95 + Ln 11 + Ln 117) 199,342,59 {1,67,939} 197,671, % 96.21% 2.89% 96.21%! 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21% 9.64% 96.21%.% 96.21%.% 96.21%.% 96.21% 255,311 1, ,82 17, ,78 89,155 5,581 29,158 1,917,66 2,211,579 11,681,543 Schedule C Page 4 of 5

61 File Date: March 3, 218 COMPONENTS OF RATE BASEM GROSS PLANT TEST YEAR ENDING DECEMBER 31, 217 Line Utility Per Books Adjusted No. Account Account Description Plant Balance Adjustments (1) Plant Balance (a) ~ ~ ~ (e)- (c)+ (d) West Texas General Office WTXDirect Allocation Allocation Allocated Factor Factor Plant Balance ( (g) (h)- (e) ( (g) 1 SSU Customer SU[;1[;1rt (Div }: 2 General Plant Land & Land Rights 2,874,24 2,874, Structures & Improvements,669,3,669, Improvements to Leased Premises 2,82,614 2,82, Office Furniture & Equipment 2,376,524 (53,348) 2,323, Communication Equipment 1,913,117 1,913, Miscellaneous Equipment 7,16 7, Other Tangible Property 629, , Servers Hardware 1,343,249 1,343, Servers Software 2,23,936 2,23, Network Hardware 629, , PC Hardware 999, , PC Software 19,247 19, Application Software 9,134,697 9,134, Total (Sum Ln 3 through Ln 135) 7,673,859 (53,348) 7,62, SSU CKV Training Center {Div ): 139 General Plant Land & Land Rights 1,886,443 1,886, Structures & Improvements,35,84,35, Office Furniture & Equipment 38,782 38, Transportation Equipment 96,29 96, Tools, Shop, and Garage Equipment 42,177 42, Laboratory Equipment 23,632 23, Communication Equipment 291,51 291, Miscellaneous Equipment 59,283 59, Other Tangible Property 339, , PC Hardware 257, , PC Software 13,892 13, Application Software 2,56 2, Total (Sum of Ln 14 through Ln 151) 16,617,345 16,617, Total SSU Customer Support (Ln Ln 152)..!L._. _:1.44..?.~1,24 [53,3_48) 144,237, Total SSU Plant Allocated to WTX System (Ln Ln 154) 343,633,794 {1,724,287) 341,99, % 99.9% 277, % 99.9% 1,223, % 99.9% 272, % 99.9% 224, % 99.9% 184, % 99.9% 6, % 99.9% 6, % 99.9% 999, % 99.9% 195, % 99.9% 6, % 99.9% 96, % 99.9% 18, % 99.9% 8,77,666,329, % 99.9% 99, % 99.9% 646, % 99.9% 2, 5.26% 99.9% 5, % 99.9% 21,4 5.26% 99.9% 1, % 99.9% 15, % 99.9% 26, % 99.9% 17, % 99.9% 13, % 99.9% 5, % 99.9% 1,8 872,85 13,21,874 24,883, Total WTX System Gross Plant (Ln 7 + Ln 156) 792,955, Note: Please see relied file, "Schedule C & D_Net PlantAdjustments.xlsx'' for details related to adjustments shown in Col (e). The adjustments include removal of SSU projects 162 previously disallowed and other known and measurable adjustments to gross plant. Schedule c Page 5 of 5

62 File Date: March 3, 218 COMPONENTS OF RATE BASE ACCUMULATED DEPRECIATION TEST YEAR ENDING DECEMBER 31, 217 Line No. Utility Account (a) West Texas Per Books Adjusted General Office WTX Direct Allocated Accumulated Accumulated Depr Allocation Allocation Accumulated Account Description Depreciation Adjustments (1) B~lances Factor Factor Depreciation (b) (c) (d) (e) =(c)+ (d) (n (g) (h)= (e) (n (g) 1 West Texas Direct: 2 Distribui 3.;:i/4.U-l ion Plant Land Land Rights Structures & Improvements Structures- Frame Structures- Land Rights Improvements Mains - Cathodic Protection Mains - Steel Mains - Plastic Compressor Station Equipment M&R Station Equipment- General M&R Station Equipment- City Gate Services Meters Meter installations House Regulators House Regulator Installations Industrial M&R Station Equipment Other Property on Customers' Premises Other Equipment Total {Sum Ln 3 through Ln 22) 1% 1% 144, ,272 1% 1% 144,272 27,389 27,389 1% 1% 27,389 6,154 6,154 1% 1% 6,154 2,74 2,74 1% 1% 2,74 23,347 23,347 1% 1% 23,347 17,913,26 17,913,26 1% 1% 17,913,26 29,943,969 29,943,969 1% 1% 29,943,969 34,231,235 34,231,235 1% 1% 34,231, ,93 217,93 1% 1% 217,93 3,613,576 3,613,576 1% 1% 3,613, , ,266 1% 1% 419,266 41,529,713 41,529,713 1% 1% 41,529,713 16,466,789 16,466,789 1% 1% 16,466,789 {13,98,614) (13,98,614) 1% 1% (13,98,614) 2,982,298 2,982,298 1% 1% 2,982,298 1,273,445 1,273,445 1% 1% 1,273,445 1,583,617 1,583,617 1% 1% 1,583,617 24,218 24,218 1% 1% 24, ,9 1% 1% 765,9 138,249,678 1 ~1.3.f4!:l.E?Z _ 138,249,678 ScheduleD Page 1 of 5

63 File Date; March 3, 218 COMPONENTS OF RATE BASE-ACCUMULATED DEPRECIATION TEST YEAR ENDING DECEMBER 31, 217 Line No. Utility Account (a) West Texas Per Books Adjusted General Office WTX Direct Allocated Accumulated Accumulated Depr Allocation Allocation Accumulated Account Description Depreciation Adjustments (1) -~~dances Factor Factor Depreciation (b) (c) (d) (e)= (c) +(d) ID (g) (h)= (e) "In (g) 25 General Plant Franchises & Consents Land & Land Rights Structures & Improvements Structures Frame Structures - Brick Improvements Air Conditioning Equipment Jmprovments to Leased Premises Office Furniture & Equipment Transportation Equipment Stores Equipment Toots, Shop, and Garage Equipment Laboratory Equipment Power Operated Equipment Ditchers Backhoes Welders Communication Equipment Telemetering Equipment Miscellaneous Equipment PC Hardware PC Software 48 RWIP Retirement Work in Progress 49 Total (Sum of Ln 26 through Ln 48) Total West Texas System Direct (Ln 23 + Ln 49) 52 1,474 (1,225) 1,187, , ,634 14,484 39, 1,326, ,83 45,899 1,146 1,915, ,41 (2,437) (3,97) 1,474 (1,225) 1 '185,58 691, ,634 14,484 39, 1,326, ,987 45,899 1,146 1,915, ,41 75,33 75,33 36,985 36,985 (6,53) (6,53) (85) (85) 1,82,726 1,82,726 2,292,575 2,292, , ,117 (364,694) (364,694) 11,391 '1 8 (5,533) 11,385, ,64,785 (5,533) s 149,635,252 1% 1% 1,474 1% 1% (1,225) 1% 1% 1,185,58 1% 1% 691,997 1% 1% 736,634 1% 1% 14,484 1% 1% 39, 1% 1% 1,326,188 1% 1% 788,987 1% 1% 45,899 1% 1% 1,146 1% 1% 1,915,422 1% 1% 1% 1% 517,41 1% 1% 1% 1% 75,33 1% 1% 36,985 1% 1% (6,53) 1% 1% (85) 1% 1% 1,82,726 1% 1% 2,292,575 1% 1% 161 '117 1% 1% (364,694) 11,385, ,635,252 ScheduleD Page 2 of 5

64 File Date: March 3,218 COMPONENTS OF RATE BASE ACCUMULATED DEPRECIATION TEST YEAR ENDING DECEMBER 31,217 Per Books Adjusted Line Utility Accumulated Accumulated Depr No. Account Account Descri~tion DeQreciation Adjustments {1} Balances (a) (b) (c) (d) (e) (c)+ (d) 53 wrx General Office CDiv 1 m: 54 G l:neral Plant Land & Land Rights Structures & Improvements 479,377 (3,286.4) 476, Office Furniture & Equipment 138,15 (21,7.48) 116, Transportation Equipment 17,558 17, Tools, Shop, and Garage Equipment 11,27 ( ) 9, Communication Equipment 114, , Mobile Radios 18,7 18, Fixed Radios Telemetering Equipment 1,377 1, Miscellaneous Equipment 421, , Servers Hardware (35.41) (35,41) Network Hardware 36,271 36, PC Hardware 436, , PC Software 32,315 32, RWIP Retirement Work in Progress 49,635 49,635 7 Total Texas Division General Office Plant Allocated to WTX System (Sum Ln 55 through Ln 69) 2,9,532 {26,64} 1,982, Total WTX System Plant (Ln 51 + Ln 7) ,317 (32.137) 151,618, SSU General Office (Div 2): 75 General Plant Structures & Improvements 47,719 47, Improvements to Leased Premises 9,311,888 (477,675) 8,834, Office Furniture & Equipment 1,747.9 (63,761) 1,684, Transportation Equipment 5,79 5, Tools, Shop, and Garage Equipment 29,492 29, Communication Equipment 55,591 55, Miscellaneous Equipment 42,694 42, Other Tangible Property 162, , Seliters Hardware 19,853,679 19,853, Seliters Software 16,66,353 16,66, Network Hardware 2,392,239 2,392, PC Hardware 992, , PC Software 199, , Application Software 31,264,133 (597,589) 3,666, System Software 43,473 43, RWIP Retirement Work in Progress 92 Total (Sum Ln 76 through Ln 91) 83,628,78 {1 '139,24) 82,489,54 93 West Texas General Office Allocation Factor m WTX Direct Allocation Factor (g) 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 1% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% 6.54% 96.21% Allocated Accumulated DeQreciation (h)- (e). m. (g) 458,57 1,39 16,893 9,288 11,569 17,325 1,325 45,426 (34,6) 34,897 42,3 38,182 47,755 1,97, ,543,7 29, ,873 15, ,856 31,813 2,686 1,217 1,249,248 1,44,918 15,526 62,481,551 1,929,624 2,735 5,19,439 ScheduleD Page 3 of 5

65 File Date: March 3, 218 COMPONENTS OF RATE BASE~ ACCUMULATED DEPRECIATION TEST YEAR ENDING DECEMBER 31,217 West Texas Per Books Adjusted General Office WTX Direct Allocated Line Utility Accumulated Accumulated Depr Allocation Allocation Accumulated No. Account Account Description Depreciation Al:tlt,~?~m-~.DJ!:l (t) Balances Factor Factor Depreciation (a) (b) (C) (d) (e) =(c)+ (d) (n (g) (h) =(e) (~ (g) 94 SSU Greenville Data Center (Div 2): 95 General Plant Structures & Improvements 3,468,461 3,468, % 96.21% 96, Office Furniture & Equipment 3,21 3, % 96.21% Total (Sum of Ln 96 through Ln 97) 3, ,498,662 97, SSU Distribution & Marketing (Div 2}: 11 General Plant 39.2 Structures & Improvements 9.64% 96.21% Improvements to Leased Premises 9.64% 96.21% Office Furniture & Equipment 96,871 (16,955) 79, % 96.21% 7, Tools, Shop, and Garage Equipment % 96.21% Communication Equipment 3,52 3, % 96.21% Miscellaneous Equipment % 96.21% Servers Hardware 1,97,23 1,97, % 96.21% 11, Servers Software 43,68 43, % 96.21% 39, Network Hardware 41,313 41, % 96.21% 3, PC Hardware 4,592 4, % 96.21% 3, Application Software 11,867,27 11,867, % 96.21% 1,1, Total (Sum of Ln through Ln 1) 13,578,48 (16,955) ,453 1,257, SSU Aligne PiQe Proiect (Div 2): 116 General Plant Servers Hardware 39,524 39,524.% 96.21% Servers Software 32,977 32,977.% 96.21% Application Software 2, ,586.% 96.21% Total (Sum of Ln 117 through Ln 119) 3,9,87 3,9,87 1 Total SSU General Office 2 (Ln 92 + Ln 98 + Ln Ln ) 13!714,235 {1,155,979},558,256 6,545,471 3 ScheduleD Page 4 of 5

66 File Date: March 3, 218 COMPONENTS OF RATE BASE- ACCUMULATED DEPRECIATION TEST YEAR ENDING DECEMBER 31, 217 West Texas Per Books Adjusted General Office WTX Direct Allocated Line Utility Accumulated Accumulated Depr Allocation Allocation Accumulated No. Account Account Description Depreciation Adjustments (1) Bal_<~_nces Factor Factor Depreciation (a) (b) (c) (d) (e)= (c) + (d) In (g) (hi= (e) m (g) 4 SSU Customer SuQQOrt (Div ): 5 General Plant Land & Land Rights 9.67% 99.9% Structures & Improvements 1,623,556 1,623, % 99.9% 156, Improvements to Leased Premises 1,599,14 (2,875) 1,596, % 99.9% 154, Office Furniture & Equipment 776,242 (,721) 763, % 99.9% 73, Communication Equipment 979, , % 99.9% 94, Miscellaneous Equipment 1,9 1,9 9.67% 99.9% 1, Other Tangible Property 417,96 417, % 99.9% 4, Servers Hardware 4,331,246 4,331, % 99.9% 418, Servers Software 1,59,24 1,59, % 99.9%, Netvl/ork Hardware 326, , % 99.9% 31, PC Hardware 483, , % 99.9% 46, PC Software 4,641 4, % 99.9%, Application Software 25,972,94 25,972, % 99.9% 2,59, RWIP Retirement Work in Progress 9.67% 99.9% 14 Total (Sum Ln 6 through Ln 139) 37,74,729 (15,596) 37,689,133 3,641, ~SU CKV Training Center (Div ): 143 General Plant Land & Land Rights 5.26% 99.9% Structures & Improvements 2,558,133 2,558, % 99.9% 134, Office Furniture & Equipment 32,35 32, % 99.9% 1, Transportation Equipment 92,71 92, % 99.9% 4, Tools, Shop, and Garage Equipment 86,79 86, % 99.9% 4, Laboratory Equipment 14,211 14, % 99.9% Communication Equipment 142, , % 99.9% 7, Miscellaneous Equipment 13,248 13, % 99.9% 6, Other Tangible Property 131,52 131, % 99.9% 6, PC Hardware 224, , % 99.9% 11, PC Software 69,641 69, % 99.9% 3, Application Software 97 9,7 5.26% 99.9% Total (Sum of Ln 144 through Ln 155} 3,491,997 3,491, , Total SSU Customer Support (Ln 14 + Ln 156) 41,196,726 (15,596) 41,181,13 3,824, Total SSU Plant Allocated to WTX System (Ln 2 + Ln 158) 144,91,961 (1,171,576} 143,739,386 1,369, Total WTX System Accumulated Depreciation (Ln 72 + Ln 16) 161,9, Note: Please see relied file, "Schedule C & D_Net Plant Adjustments.xlsx" for details related to adjustments shown in Col (e). The adjustments include removal of SSU projects 166 previously disallowed and other known and measurable adjustments to accumulated depreciation. ScheduleD Page 5 of 5

67 File Date: March 3, 218 CASH WORKING CAPITAL TEST YEAR ENDING DECEMBER 31,217 Line No. Test Year Avg. Daily Revenue Expense Net Working Capital Description ~.lc:p~il i~ i Reference Expense Lag -~-~-g Lag Requirement (a) (b) (c) (d)=(b)/365 (e) (D (g)=(e)-(d (h)=(d)x(g) Total Gas Supply Expense,486,214 Detail Trial Balance Operation & Maintenance Other O&M ~ Labor 13,522,86 [1], [2] Other O&M ~ Non-Labor 28,368,892 Ln. 6 minus Ln. 4 Total Operation & Maintenance 41,891,698 Schedule F-1 Taxes Other Than Income Non~Revenue Related Ad Valorem 6,277,383 Schedule F-5 Payroll Taxes 525,11 Schedule F-5 Allocated Taxes- Ad Valorem and Other 552,417 [3] Allocated Taxes- Payroll Taxes 735,837 [4] Total Non-Revenue Related Taxes 8,9,747 Sum Ln 1 through Ln 13 Revenue Related Local Franchise Tax 1,61,813 Detail Trial Balance State Gas Transportation 9,738 Schedule F-5 Total Revenue Related Taxes 1,71,551 Sum Ln 17 through Ln 18 Total Taxes Other Than Income Taxes 18,162,298 Sum of Ln 14 and Ln 19 State Income Tax ("Gross Margin") 953,817 Schedule F-6 Current Federal Income Tax [5] Interest on Customer Deposits 26,97 Schedule F-7 Total Cash Working Capital Requirement 163,52,934 Notes: 1. Includes WTX Division and SSU Labor and wrx Division MIP/VPP (excludes SSU MIP/VPP). 2. WP_F-2.1, Col (g) Ln21 + WP_F-2.1, Col (c) Ln 25 +WP_F-5.1, Col (b) Ln27+ WTXMIP/VPP. 3. Schdule F-5, Co!. (d), Ln. 4 plus Schedule F~5, Col. (d), Ln. 5 minus Schedule E, Col. (b), Ln WP _F-5.1, Co!. (b), Ln. 32 plus relied file, "CY17 Detail Trial Balance.xlsx", cell E Current portion of federal income tax is set to zero this year due to the revaluation of ADIT per the Tax Cuts and Jobs Act. 6. Cash Working Capital Revenue and Expense Lags are per the 213 West Texas SOl Cash Working Capital Study. 28, , , , , , , , , (46.5) (3.11) (174.96) 4.5 (174.96) 4.5 (27.14) (56.19) (293.29) (873,239) 342,71 41, ,529 (3,9,16) 5,827 (264,797) 8,165 (3,259,822) (748,231) (1,499) (749,73) (4,9,552) 222,226 (21,621) (3,937,656) Schedule E Page 1 of 1

68 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Assets I (Liabilities) - Line Per Book Balances No. Description at Adjustments (3) (a) (b) (c) 1 West Texas Direct: 2 MIP I VPP Accrual 3 Worker 1 s Camp Insurance Reserve 4 FAS 16 Adjustment 5 CWIP 19,799 (19,799) 6 RWIP (269,231) 7 Fixed Asset Cost Adjustment (51,229,99) 8 Depreciation Adjustment (2,81,569) 9 Section 481 (a) TPR 1 Deferred Gas Costs 1,61,13 (1,61 '13) 11 Over Recoveries of PGA (2,715,457) 2,715,457 Customer Advances 138,75 13 Deferred Expense Projects 14 Capitalized Selling Expense 15 Allowance for Doubtful Accounts 198,71 (198,71) 16 Charitable Contribution Carryover 17 Prepayments 18 Rate Case Accrual 488,532 (488,532) 19 TX Rule 8.29 Reg Asset Deferral (1,348,885) 2 Regulatory Liability - Almas Regulatory Liability- 217 Gross Up 22 Total West Texas System Direct (Sum Ln 2 through Ln 21) (73,648,4) 857, Assets I (Liabilities) - Adjusted Balances at (d)- (b) + (c) (269,231) (51,229,99) (2,81,569) 138,75 (1,348,885) (72,79,79) WP_E-1 Page 1 of 5

69 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Line No. Description (a) Assets I (Liabilities)- Per Book Balances at /3116 (b) Adjustments (3) (c) Assets I (Liabilities)- Adjusted Balances at 131/216 (d) (b) + (c) WTX General Office (Div 1 ): Ad Valorum Taxes MIP I VPP Accrual Self Insurance - Adjustment Vacation Accrual Worker's Camp Insurance Reserve SEBP Adjustment FAS 16 Adjustment CWIP RWIP Fixed Asset Cost Adjustment Depreciation Adjustment Section 481(a) TPR Deferred Gas Costs Over Recoveries of PGA Customer Advances Deferred Expense Projects Capitalized Selling Expense UN I CAP Section 263A Costs 481 (a) UNICAP Allowance for Doubtful Accounts Clearing Account - Adjustment Charitable Contribution Carryover Prepayments Rate Case Accrual WACOG to FIFO Adjustment Reg Asset Benefit Accrual (24,591) 24, ,94 584,416 11,57,478 1,71,691 (143) (2,352,68) (2,291, 197) (1,522,715) (28,399) (13,268) (191) 259,529 21,94 (1,82,88) 113,573 (225, 168) (1,71,691) 1,522,715 28,399 - (21,94) 1,82,88 (24,591) 24, ,94 584,416 11,57,478 (143) (2,352,68) (2,291 '197) (13,268) (191) 259, ,573 (225, 168) WP _E-1 Page 2 of 5

70 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Line No Assets I (Liabilities)- Per Book Balances Description at Adjustments (3) (a) (b) (c) TX Rule 8.29 Reg Asset Deferral (429,616) Intra Period Tax Allocation 94,327 (94,327) Regulatory Liability- Atmos 19 Subtotal (Sum Ln 25 through Ln 53) 5,38,578 1,626,9 WTX General Office Allocation Factor 1% 1% West Texas Direct Allocation Factor 96.21% 96.21% Total WTX General Office Allocated to WTX Direct (Ln 54 x Ln 55 x Ln 56) 4,847,725 1,564,496 Total West Texas Direct (Ln 22 + Ln 57) (68,8,279) 2,422,421 SSU - Customer Suggort (Div ): MIP I VPP Accrual (574,777) 574,777 Vacation Accrual Worker's Camp Insurance Reserve FAS 16 Adjustment CWIP (255,614) 255,614 RWIP (137) - Fixed Asset Cost Adjustment (45,459,621) Depreciation Adjustment 17,798,432 Clearing Account - Adjustment Charitable Contribution Carryover Prepayments Intra Period Tax Allocation Total (Sum Ln 62 through Ln 73) (28,491,717) 83,391 WTX General Office Allocation Factor 9.67% 9.67% West Texas Direct Allocation Factor 99.9% 99.9% Customer Support Allocated to West Texas (Ln 74 x Ln 75 x Ln 76) (2,752,57) 8,222 Assets I (Liabilities) - Adjusted Balances at (d)- (b) + (c) (429,616) 6,664,668 1% 96.21% 6,4,222 (66,377,857) (137) (45,459,621) 17,798,432 (27,661,326) 9.67% 99.9% (2,672,285) WP _E-1 Page 3 of 5

71 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Line No Assets I (Liabilities)- Per Book Balances Description at Adjustments (3) (a) (b) (c) SSU - General Office (Div 2): Directors Deferred Bonus 166,965 MIP I VPP Accrual 1,498,97 (1,498,97) Miscellaneous Accrued Self Insurance - Adjustment 2,915,283 (2,915,283) Vacation Accrual Worke~s Camp Insurance Reserve 14,671 SEBP Adjustment 26,316,34 (26,316,34) Restricted Stock Grant Plan 4,631,448 (4,631,448) Rabbi Trust 1,442,452 (1,442,452) Restricted Stock - M I P,632,356 (,632,356) Director's Stock Awards 5,939,395 Pension Expense (3,651,6) FAS 16 Adjustment 8,944,489 - CWIP 1,77,565 (1,77,565) RWIP (3,782) Fixed Asset Cost Adjustment (42,571,576) Depreciation Adjustment 16,156,193 Section 481 (a) Cushion Gas 549,29 (549,29) Section 481 (a) Line Pack Gas 66,639 (66,639) Deferred Expense Projects Allowance for Doubtful Accounts 2 (2) Clearing Account- Adjustment Charitable Contribution Carryover 11,32,917 (11,32,917) Prepayments (4,47,588) Stock Option Expense Federal & State Tax Interest 439,887 - VA Charitable Contributions (9,275,764) 9,275,764 Assets I (Liabilities) - Adjusted Balances at (d) - (b) + (c) 166,965 14,671 5,939,395 (3,651,6) 8,944,489 (3,782) (42,571,576) 16,156,193 (4,47,588) 439,887 WP_E-1 Page 4 of5

72 File Date: March 3, 218 BEGINNING BALANCE ACCUMULATED DEFERRED INCOME TAXES (1) (2) TEST YEAR ENDING DECEMBER 31, 217 Line No Assets I (Liabilities)- Per Book Balances Description at Adjustments (3) (a) (b) (c) Intra Period Tax Allocation Regulatory Liability - Almas 19 FD - NOL Credit Carryforward - Non Reg (245,531,762) 245,531,762 FD - NOL Credit Carryforward - Utility 761,9,475 FD - NOL Credit Carryforward - Other 6,52, (6,52, ) FD- FAS 115 Adjustment (2,87,642) FD- AMT Minimum Tax Credit 1,99,286 ST- Valuation Allow Enterprise Zone ltc (,928),928 FD- Valuation Allow Fed Tax Enterprise Zone ltc 42,325 (42,325) ST - Enterprise Zone ltc 1,755,554 (1,755,554) FD - Treasury Lock Adjustment- Realized 1,47,977 FD - Treasury Lock Adjustment- Unrealized 44,881,29 (44,881,29) FD- Federal Tax on Enterprise ltc (614,444) 614,444 Total (Sum Ln 8 through Ln 119) 594,31,56 14,18,59 WTX General Office Allocation Factor 6.54% 6.54% West Texas Direct Allocation Factor 96.21% 96.21% SSU General Office Allocated to West Texas (Ln x Ln 1 x Ln 2) 37,378,15 8,81,356 Total SSU ADIT Allocated to West Texas (Ln 77 + Ln 3) 34,625,598 8,89,578 Grand Total West Texas AD IT (Ln 59+ Ln 5) (34,174,68) 11,3,999 Notes: 1. Includes FERC Accounts 19, 282 and Credit amounts are in parentheses. 3. Adjustments are for those items not included in rate base for ratemaking purposes. Assets I (Liabilities)- Adjusted Balances at (d) = (b) +(c) 761,9,475 (2,87,642) 1,99,286 1,47, ,5, % 96.21% 46,188,461 43,516,176 (22,861,681) WP _E-1 Page 5 of 5

73 File Date: March 3, 218 OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31, 217 Line No. FERC Acct (a) Descrietion (b) Per Book Amount (c) Adjustments {d) Adjusted Amount (e)= (c)+ (d) Natural Gas Storage- Maintenance of Measuring Equipment Natural Gas Storage- Operation Supervision and Engineering Transmission - Operation Supervision and Engineering 8 Transmission - Mains Expenses 17,34 Transmission -Measuring and Regulating Station Expenses 24,613 Transmission - Other Expenses Transmission - Rents Transmission - Maintenance Supervision and Engineering Transmission -Maintenance of Mains 26,146 Transmission -Maintenance of Compressor Station Equipment 359 Transmission - Maintenance of M&R Station Equipment 433 Transmission - Operation Supervision and Engineering 2,29,851 Distribution - Distribution Load Dispatching 1,99 Distribution - Odorization 1,25 Distribution - Compressor Station Labor and Expenses Distribution - Mains and Services Expenses 6,194,617 Distribution - M&R Station Expenses - General 955,376 Distribution - M&R Station Expenses- Industrial 5,328 Distribution - M&R Station Expenses - City Gate 85 Distribution - Meter and House Regulator Expenses 2,64,71 Distribution- Customer Installations Expenses 437,832 Distribution - Other Expenses 85,331 Distribution - Rents 561,99 Distribution -Maintenance Supervision and Engineering 11' 179 Distribution -Maintenance of Structures and Improvements 14,946 Distribution - Maintenance of Mains 149,946 Distribution -Maintenance of Compressor Station Equipment 66 Distribution -Maintenance of M&R Station Equip. -General 41,483 Distribution -Maintenance of M&R Station Equip. - Industrial 11, , , , ,154 2,219,6 47 2,37 1,25 42,636 6,237,253 19, ,1 13 5, ,592 2,17,663 9,78 447, , ,99 11 '179 14, , ,13 42, ,4 Schedule F-1 Page 1 of 2

74 File Date: March 3, 218 OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31,217 Line FERC Per Book Adjusted No. Acct Description Amount Adjustments Amount (a) (b) (c) (d) (e)- (c)+ (d) Distribution - Maintenance of M&R Station Equip. -City Gate 32, , Distribution - Maintenance of Services 2, , Distribution - Maintenance of Meters and House Regulators Distribution - Maintenance of Other Equipment 5, , Customer Accounts- Supervision Customer Accounts- Meter Reading Expenses 927,699 22, , Customer Accounts - Customer Records and Collection Expenses 52,368 9,848 5, Customer Accounts- Uncollectible Accounts 1,381,356 37,19 1,751, Customer Accounts- Miscellaneous Customer Accounts Expenses Customer Service - Supervision 4 98 Customer Service - Customer Assistance Expenses Customer Service- Informational & Instructional Advertising Expenses 83,74 83, Customer Service- Misc. Customer Service and Informational Expenses Sales Expenses- Supervision (364) (364) 44 9 Sales Expenses - Demonstrating and Selling Expenses 48,198 5, , Sales Expenses - Advertising Expenses A&G- Administrative and General Salaries 56,582 1,383 57, A&G - Office Supplies and Expenses 18,646 18, A&G- Administrative Expenses Transferred -Credit 23,438,79 (1,798,615) 21,64, A&G -Outside Services Employed 337, , A&G- Property Insurance 193,293 (5) 193, A&G - Injuries and Damages 158,21 158, A&G - Employee Pensions and Benefits 2,956,729 (246,763) 2,79, A&G - Duplicate Charges- Credit A&G- Miscellaneous General Expense A&G -Miscellaneous General Expense A&G - Maintenance of General Plant Total Operation and Maintenance Expenses (Sum of Ln 1 through Ln 56) 43,399,411 (1,57,713) 41,891,698 Schedule F-1 Page 2 of2

75 File Date: March 3,218 ADJUSTMENTS TO OPERATION AND MAINTENANCE EXPENSES TEST YEAR ENDING DECEMBER 31, 217 Line " FERC Account Account Description,,, {b) Medical and Pensions and Dental Retiree Medical Property Blank Employee Base Labor Benefits Benefits Insurance Sh.eet Expense {o) {d),,, {g) {h) 1 ee5 Natural Gas Storage- Maintenance of Measuring Equipment 2 84 Natural Gas storage- Operation Supervision and Engineering 85 Transmission- Operation Supervision and Engineering ' 4 Transmission- Mains Expenses 5 "' 857 Transmission- Measuring and Regulating station Expenses e58 Transmission- Other Expenses ' 7 8 Transmission- Rents '" Transmission- Maintenance Supervision and Engineering 8 83 Transmission- Maintenance of Mains Transmission- Maintenance of compressor station Equipment 11 8e5 Transmission- Maintenance of M&R stauon Equipment 87 Transmission- Operation Supervision and Engineering 1, Distribution- Distribution Load Dispatching Distribution- Odorization Distribution- Compressor Station Labor and Expenses Distribution- Mains and Services Expenses 59, Distribution- M&R Station Expenses- General 19, Distribution- M&R station Expenses- Industrial Distribution- M&R Station Expenses- City Gate Distribution- Meter and House Regulator Expenses 43, Distribution- Customer Installations Expenses 9, Distribution- Other Expenses Distribution- Rents " Distribution- Maintenance Supervision and Engineering 88 Distribution- Maintenance of structures and Improvements " Distribution- Maintenance of Mains 27 88e Distribution- Maintenance of Compressor Station Equipment Distribution- Maintenance of M&R Station Equip.- General 1, Distribution- Maintenance of M&R Station Equip. -Industrial Distribution- Maintenance of M&R Station Equip.- City Gate Distribution- Maintenance of Services Distribution- Maintenance of Meters and House Regulators 894 Distribution- Maintenance of Other Equipment " Customer Accounts -Supervision Customer Accounts- Meter Reading Expenses 22, Customer Accounts- Customer Records and Collection Expenses 9, Customer Accounts- Uncollectible Accounts Customer Accounts- Miscellaneous Customer Accounts Expenses Customer Service- Supervision 4 98 Customer Service- Customer Assistance Expenses Customer Service -lnformauonal & Instructional Advertising Expenses Customer Service- Misc. Customer Service and Informational Expense: Sales Expenses- Supervision 44 9 Sales Expenses- Demonstrating and Selling Expenses 6, Sales Expenses- Advertising Expenses A&G- Administrative and General Salaries 1, A&G- Office Supplies and Expenses A&G- Administrative Expenses Transferred- CredH 144,983 47,848 (11,885} (247} A&G- Outside Services Employed A&G- Property Insurance (5} A&G -Injuries and Damages A&G- Employee Pensions and Benefits 25,838 29, A&G- Duplicate Charges- Credit " A&G- Miscellaneous General Expense A&G- Miscellaneous General Expense A&G- Maintenance of General Plant 57 Total Adjustments to O&M Expenses (Sum of Ln 1 through Ln 56} s ,299) s 971 s " 58 Adjustment Reference: WP_F-2.1 1NP _F-2.2 WP_F-2.3 WP_F-2.4 WP_F-2.5 WP_F-2.6 '" "" Service-Level Miscellaneous Uncollectible Factors Adjustments Expense (i} {k) ' " (16,956} 37,19 (1,471,29) (417,956) (32,187} ) WP_F-2.7 WP _F-2.8 WP_F-2.9 Rule Blank compllance Sh.eet { {m) (1,11} (1,386} (329) (iffl25) WP_F-2.1 WP_F-2.11 Total Adiustments,,, '" , ,636 19, ,592 9, , ,185 9,848 37,19 5,134 1,383 (1,798,615) (5) (246,763) -~ tl!:iot.713l Schedule F-2 Page1 oft

76 '' File Date: March 3, 218 BASE LABOR ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Line No. Descrietion (a) Shared Services R Customer Sueeort (b) Shared Services- General Office (c) Shared Services R Total (d) WTXSystem Direct (e) WTXGeneral Office {Div. 1}!D Total Adjustment (g) Annualized December 217 Employee Salaries (1) (5) Test Year Base Labor (5) Base Labor Adjustment Total (Ln 1 - Ln 3) West Texas General Office Allocation Factor (2) (3) West Texas Direct Allocation Factor (2) (3} Subtotal (Ln 5 x Ln 7 x Ln 8) WTX Base Labor Allocation Factor (6} Total Allocated Base Labor Adjustment (Ln 9 x Ln 11) O&M Expense Factor (2) (3) Test Year Base Labor O&M Expense Adjustment (Ln 13 x Ln 15) Adjustment Summary: Account 922 Other O&M Accounts ( 4) Total (Ln 2 + Ln 21) 28,874,325 27,651,879 1,222, % 99.9% 118,97 118, % 11,596 11,596 11,596 47,7,141 46,74, , % 96.21% 62,624 62, % 43,387 43,387 43,387 75,944,466 73,726,763 2,217, % 98.59% 18,721 18, % 144,983 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 fourwfactor fonnula including Operating Income. 27 West Texas 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 29 of other employee-related adjustments Distribution by account is based upon per book O&M test year labor (See Page 2). 21,78,572 21,23,58 478,513 1.% 1.% 478, % 247, % 14, SSU amounts exclude cost centers which do not allocate to the West Texas Division and employee time charged below the line for rate making purposes Allocates Total West Texas Base Labor to the West Texas Genera! Office and West Texas Direct Divisions. Not applicable to Columns (b) through (d). 21,78,572 21,23,58 478,513 1.% 96.21% 46, % 27, % 46,789 14,359 46,789 14,359 46, , , ,131 WP_F-2.1 Page 1 of 2

77 File Date: March 3, 218 BASE LABOR ADJUSTMENT- DISTRIBUTION OF WTX DIRECT BY FERC ACCOUNT TEST YEAR ENDING DECEMBER 31, 217 Line No. FERC Account (a) Ratio of Labor by Account Descri[!:tion Per Book O&M Labor Account (b) (c) (d) Base Labor Adjustment Allocated by Account (e)- (C) X (d) Natural Gas Storage- Maintenance of Measuring Equipment.% Natural Gas Storage- Operation Supervision and Engineering.% Transmission- Mains Expenses 13, % Transmission- Measuring and Regulating Station Expenses 21, % Transmission- Maintenance of Mains 2, % Transmission- Maintenance of M&R Station Equipment.% Transmission- Operation Supervision and Engineering 419, % Distribution- Distribution Load Dispatching 1, % Distribution - Mains and Services Expenses 2,438, % Distribution- M&R Station Expenses- General 87, % Distribution- M&R Station Expenses- Industrial 5, % Distribution - M&R Station Expenses - City Gate.% Distribution- Meter and House Regulator Expenses 1,783, % Distribution- Customer Installations Expenses 4, % Distribution - Other Expenses 4, % Distribution- Maintenance of Mains.% Distribution- Maintenance of M&R Station Equip. - General 41, % Distribution- Maintenance of M&R Station Equip. - Industrial 11, % Distribution- Maintenance of M&R Station Equip.- City Gate 32, % Distribution - Maintenance of Services 2,23.264% Distribution- Maintenance of Other Equipment % Customer Accounts- Meter Reading Expenses 97, % Customer Accounts- Customer Records & Collection Exp 42, % Sales Expenses- Demonstrating and Selling Expenses 266, % A&G- Administrative and Genera! Salaries Total (Sum of Ln 1 through Ln 25) , ,592 19, ,592 9, , ,185 9,848 6,52 WP_F-2.1 Page 2 of2

78 File Date: March 3, 218 MEDICAL AND DENTAL BENEFITS ADJUSTMENT TEST YEAR ENDING DECEMBER 31,217 Line No. Description (a) Shared Services (b) West Texas (c) Total Adjustment (d) FY 218 Projected Expense per Employee (1) 14,456 Number of Employees at End of Test Period (3) 1,32 Sub-Total (Ln 1 x Ln 3) 14,918,599 Test Year Medical and Dental Cost 14,186,77 Medical and Dental Cost Adjustment (Ln 5 - Ln 7) 731,892 West Texas General Office Allocation Factor (2) 8.27% West Texas Direct Allocation Factor (2) 98.59% Allocated Medical and Dental Cost Adjustment (Ln 9 x Ln 11 x Ln ) 59,642 Labor Expense Factor (2) 8.22% Test Year Medical and Dental Expense Adjustment (Ln 13 x Ln 15) 47,848 Adjustment Summary: Account ,848 Account 926 Total (Ln 2 + Ln 21) 47,848 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 Income. West Texas factors are based upon actual test year ratios. 3. SSU amounts exclude cost centers which do not allocate to West Texas Division for rate making purposes. 14, ,857,218 4,89,87 47,348 1.% 96.21% 45, % 25,838 25,838 25,838 47,848 25,838 73,686 WP_F-2.2 Page 1 of 1

79 File Date: March 3, 218 PENSIONS AND RETIREE MEDICAL BENEFITS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Shared Services Post- Line Pension Employment Pension No. Description Account Plan Benefit Plan Account Plan (a) (b) (c) (d) WTX Supplemental Post- Executive Employment Adjustment Benefit Plan Benefit Plan Total (e)!d (g) 1 Fiscal Year 217 Willis Towers Watson Report as adjusted {1) {4) 5,48,35 2,888,981 1,66,542 2 O&M Expense Factor {2) 8.22% 8.22% 56.72% 3 Fiscal Year 217 Actuarial!y Determined O&M Benefits (Ln 1 x Ln 2) 4,49,98 2,317, ,837 4 West Texas General Office Allocation Factor (2) 8.27% 8.27% 1.% 5 West Texas Direct Allocation Factor (2) (3) 98.59% 98.59% 96.21% 6 West Texas Benefits Expense Included in Rates- Proposed {Ln 3 x Ln 4 x Ln 5) 33,34 188,868 96,161 44,4 1,278,72 1.% 56.72% 44,4 724,95 1.% 1.% 96.21% 96.21% 42, ,447 2,164, West Texas Benefits Expense Benchmark {5) 395,75 225,7 87,456 39,896 76,8 2,237, Test Year Adjustment {Ln 6 minus Ln 8) (65,4_1... (36,844) 35,76 2,442 (8,562) (72,299) 11 Adjustment Summary: 13 Account Account Total (Ln 13 + Ln 14) (65,41) (36,844) (11,885) 35,76 2,442 (8,562) 29,586 (65,41) (36,844) 35,76 2,442 (8,562) (72,299) Notes: Studies not applicable to West Texas or Shared Services are omitted Shared Services' ratios in Columns {b) and (d) are based upon FY18 factors, as adjusted for the 4-Factor method including Operating Income West Texas percentages reflect FY18 allocation factors SSU amounts exclude cost centers which do not allocate to West Texas Division for rate making purposes The Settlement reached in the 215 WTX Cities RRM set the benchmark for January 1, 217- March 14, 217. The 216 WTX Cities RRM Settlement Agreement set the benchmark for 24 March 15, 217- December 31, 217. WP_F-2.3 Page 1 of 1

80 File Date: March 3, 218 PENSIONS AND RETIREE MEDICAL BENEFITS FOR APPROVAL TEST YEAR ENDING DECEMBER 31, 217 Line No. Description (a) Shared Services Post- Pension Employment Pension Account Plan Benefit Plan Account Plan (b) (c) (d) WTX Post- Supplemental Employment Executive Benefit Plan Benefit Plan Total (e) (f) (g) FY 217 Willis Towers Watson Amounts {Excluding Removed Cost Centers) 5,48,35 2,888,981 1,66,542 West Texas General Office Allocation Factor 8.27% 8.27% 1.% West Texas Direct Allocation Factor 98.59% 98.59% 96.21% FY 217 Wi!lis Towers Watson Benefit Costs (Excluding Removed Cost Centers) Allocated to WTX (Ln 1 x Ln 2 x Ln 3) 411, ,424 1,597,644 O&M and Capital Allocation Factor 1.% 1.% 1.% FY 217 Wi!lis Towers Watson Benefit Costs To Approve {Excluding Removed Cost Centers) {Ln 4 x Ln 5) 411, ,424 1,597,644 Summary of Costs to Approve: O&M Expense Factor (WP _F-2.3, Ln 2) 8.22% 8.22% 56.72% Total Pension Account Plan 33,34 96,161 Total Post-Employment Benefit Plan 188,868 Total Supplemental Executive Benefit Plan Total (Ln 13 plus Ln 14 plus Ln 15) 33,34 188,868 96,161 Note: 1,278,72 44,4 1.% 1.% 96.21% 96.21% 1,229,661 42,337 1.% 1.% 1,229,661 42,337 3,516, % 1.% 1,236, , ,315 42,337 42, ,447 42,337 2,164, West Texas is proposing that the fiscal year 217 Wi111s 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. WP_F Page 1 of 1

81 File Date: March 3, 218 PROPERTY INSURANCE ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Line No. SSU - General SSU - Customer Description Office Support West Texas (a) (b) (c) (d) Total Adjustment (e) 1 Premium Adjustment: 2 Annual Premium- Current Policy (TME March 218) (1) (2) 133,57 95,82 48,94 3 Less: Test Year Premium Amount 14,919 11,56 481,83 4 Subtotal (Ln 2- Ln 3) (7,861) (5,254) (143) 5 West Texas General Office Allocation Factor (3) 6.54% 9.67% 1.% 6 West Texas Direct Allocation Factor (3) 96.21% 99.9% 1.% 7 Allocated Total Adjustment (Ln 4 x Ln 5 x Ln 6) (495) (58) (143) 8 O&M Expense Factor (3) 24.63% 24.63% 35.34% 9 Total Premium Adjustment (Ln 7 x Ln 8) (2) (5) (5) 1 11 Summary by Account: Account 922 (2) (5) 13 Account 924 (5) 14 Totals (Ln + Ln 13) (2).. (5) (5) Notes: Line 2, Annual Premium -Current Policy, does not include the insurance premium amount associated with 19 CWIP as pergud No. 117 Final Order FOF Nos. 192 and The premium amounts include 4.85% tax per TEX. INS. CODE (a) Shared Services Blueflame Premiums are recorded to Cost Center 1915, however, the Customer Support 22 Premium is allocated to West Texas based on the Customer Support factor (see cost center ) as 23 adjusted for the 4-Factor method including Operating Income (see WP _F-2.7). Both premiums are 24 capitalized based on the Cost Center 1915 ratio. West Texas factors are based upon actual test year ratios. (247) (5) (297) WP_F-2.4 Page 1 of 1

82 File Date: March 3, 218 BLANK SHEET TEST YEAR ENDING DECEMBER 31,217 PAGE INTENTIONALLY LEFT BLANK WP_F-2.5 Page 1 of 1

83 File Date: March 3, 218 EMPLOYEE EXPENSE ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Line No. Shared Services - Shared Services - Description Customer Support General Office West Texas (a) (b) (c) (d) WTX General Office (e) Total Adjustment (f) Twelve Months Ended December 31, 217: Employee Expense Adjustment West Texas General Office Allocation Factor (1) 9.67% 6.54% 1.% West Texas Direct Allocation Factor (1) 99.9% 96.21% 1.% Allocated Employee Expense Totals (ln 2 x Ln 3 x Ln 4) O&M Expense Factor (1) (2) 86.3% 69.28% 1.% Subtotal (Ln 5 x Ln 6) Summary by Account Account 922 Account 93.2 Total (Ln 1 + Ln 11) Notes: 1. See WP _F-2.1, Col (b) and Col (c), Ln 7, Ln 8 and Ln 15, as applicable, for the Shared Services factors, as adjusted. 2. West Texas costs are directly charged and not allocated. 1.% 96.21% 1.% WP_F-2.6 Page 1 of 1

84 File Date: March 3,218 WEST TEXAS CITIES {"WTX CITIES") RATE REVIEW MECHANISM SHARED SERVICES {"SSU") SERVICE-LEVEL FACTORS ADJUSTMENT TEST YEAR ENDING DECEMBER 31, 217 Line No. Description SSU O&M {Labor),,, (b) 11 SS Dallas Executive Chairman 684, SS Dallas Chief Financial Officer 3,79,99 1 ss Utility Operations 36, SS Dallas Audit 116 SS Dallas Treasurer 293, SS DallasTraasul)' 582, ss Dallas Risk Management 48, ss Dallas Procurement 17, SSDallasMali&Supply 2,429 ) 1114 SS Dallas Vice Pres & Controller 264,44 ii 1116 SS Dallas Taxation 218,815 i ss Dallas Acctg Services 158,631 i SS Dallas Supply Chain 42,73 i SS Dallas General Accounting 435,67 i5 1 SS Dallas Accounts Payable 44,473 i6 11 ss Dallas PlantAccountin9 579,637 i7 13 ss Dallas Gas Accounting 277,425 i8 15 SS Dallas Financial Reporting 822,31 i9 16 SS Dallas Payroll 343,36g 2 18 SSDallasProperty&SalesTax 1,268,75 2i 19 ss Dallas Income Tax 56, SS Dallas Business Planning and Analysis 74, SS Dallas Media Relations SS Dallas Investor Relations (5) 481, SS Dallas Corporate Communications 773, ss Dallas IT 1,376, ss Dallas rt E&O, Corporate Systems 2,2, SS Dal-IT Engineering & Operations 3,627, SS Dallas Gas Purchase Accounting 51, ss Dallas Rate Administration 66,357 3i 1145 SS Dallas Revenue Accounting 243,63g SS Dallas IT Enterprise Solutions SS Dallas Strategic Planning 413, ss Dallas Distribution Acctg 62, SS Dallas Rates & Regulatol)' 1,546, SS Dallas Texas Gas Pipeline Accounting 5, SS Dal-IT Customer Services Systems 2,159, SSCCCITSupport ss Dallas Director Technical Training 46, SS Dallas Benefits and Payroll Aocountlng 375,917 4i 1164 SS Dallas IT Security g37, SS Oai-IT Enterprise Architecture 448, SS Regulatol)' Accounting Services 189, SS Dallas President & CEO 1,48, SS Dallas SVP Utility Operations 31, SS Dallas Safety & Compliance 681, ss esc-customer Contact Management 14,351, SS Dispatch Operations 4,53, SS Dallas CSO Training & Knowledge Mgmt 488, SS Pipeline Administration 117,55 5i 24 SS Dallas CSO Human Resources 477, SS Dallas Customer Service 1,117, SS Dallas Business Processes & Change Management 1,69, SS Dallas Customer Revenue Management 2,861,575 Per Book I FY 218 I Total SSUO&M SSUO&M Capitalization Rate Capitalization Rate {Non-Labor) Ex~:~ense (LaborExpJ {Non-Labor Exp} (o} {d)"' (b)+ (c),,, '" 1,67,879 2,355, % 75.37% (27,585) 2,872, % 75.37% 394,14 754, % 79.11% 5,286,71 5,286,71.%.% 297,44 59, % 77.48% 1,4,41 1,982, % 75.37% 342,746 75,761 8.% 8.% 11, , % 5.77% 374, , % 17.34% 297, , % 3.75% 4, , % 1.62% 264, , % 68.36% 288,58 78, % 46.51% 247, , % 75.37% 283, , % 35.1g% 334, , % 91.2% 281, ,819.%.% 728,55 1,55,356.%.% 269,411 6, % 75.37% 1,55,465 2,773, % 1.43% 811,481 1,372,45 2.% 2.% 52,443 1,261, % 58.26% 3,1g2 3,1g2.%.% 741,55 1,223,11.%.% 1,278,66 2,51,238.%.% 1,436,73 2,8, % 38.57% 6,275,413 8,295, % 31.53% 11,975,374 15,62, % 34.75% 199,548 7,821.%.% 28, ,252.%.% 176,857 42,4g7.%.% 5g7,1g 597,1g.%.% 616,111 1,29, % 56.94% 26, ,444.%.% 1,241,668 2,787, % 75.37% 44,21 169,287.%.% 4,n1,14 6,89, % 27.56% 2,26,718 2,26,718.%.% 589, ,915.%.% 136,28 5, % 75.37% 2,35,784 3,243,52 17.% 17.% 181,985 63,64 2.% 6.% 82, , % 75.37% 3,214,819 4,262, % 75.37% 415,31 717,9 22.7% 27.3% 96,916 1,588, % 1.43% 8,4,317 22,355, % 19.55% 1,775,898 6,36,186.%.% 221,57 71,448.%.% 476, ,619.%.% 233, ,141.%.% 1,637,534 2,754, % 14.79% 1,285,165 2,894, % 17.67% 2,38,6 4,899,581.%.% Texas Division I West Texas Four Factor Allocation Factor Allocation Factor!2), (3) f2}, (3) Total (g) (h) (i}" (d) X {g) X {h) 6.54% 96.21% 148, % 96.21% 18, % 96.21% 71, % 96.21% 332, % 96.21% 37, % 96.21% 4, % 96.21% 47, % 98.21% 18, % 98.21% 37, % 96.21% 35, % 96.21% 38, % 96.21% 26, % 96.21% 52, % 96.21% 42, % 96.21% 45, % 96.21% 57,4g9 7.71% 96.21% 41, % 96.21% 97, % 96.21% 38, % 96.21% 174, % 96.21% 86, % 96.21% 79, % 96.21% % 96.21% 76, % 96.21% 9,7 6.54% 96.21% 176, % 96.21% 521, % 96.21% 981, g% 96.21% 66, g_7g% 96.21% 88, % 96.21% 3g, % 96.21% 37, % 96.21% 64, % 96.21% 81,32g 7.75% 96.21% 27,866.% 96.21% 9.67% 99.9% 665, % 99.9% 213, % 96.21% 62, % 96.21% 32, % 96.21% 24,og1 7.75% 96.21% 47, % 96.21% 2, % 96.21% 268, % 96.21% 45, % 96.21% 118, % 99.9% 2,15g, % 99.9% 69, % 99.9% 68,634.% 96.21% 9.67% 99.9% 68, % 99.9% 266, % 96.21% 215, % 99.9% 473,335 SSU Allocated to ca~:~ita! (4) m"' (b"e*g*h} + (c rg hj 111, ,225 56,22 28,799 94,32 37,792 8,242 6,284 1, ,191 24,574 32,48 16,3 52,441 29,61 2,4g3 1,727 46,239 68, , ,391 36, , ,17 24,2g1 34,696 14,832 15,254 22,174 11,252 1, ,155 25,779 21,258 Expense Allocated to West Texas Direct (k)" (i)- (j} 36,56 44,514 14, ,654 8,37 3,727 9,448 7,991 3,793 24,492 38,327 8,421 28,267 1,59 29,523 5,58 41,453 97,553 9, ,26 84,628 33, ,955 9,7 18,714 37,5 666,354 66, 88,658 39,67 37,588 27,89 81,329 51, , ,185 62,666 7, ,396 32,189 4,g84 66,64 33, ,722 1,737,565 6og,223 68,634 68,71 24, , ,335 WP_F-2.7 Page1of2

85 File Date: March 3,218 WEST TEXAS CITIES ("WTX C!T!ES") RATE REVIEW MECHANISM SHARED SERVICES ("SSU") SERVICE-LEVEL FACTORS ADJUSTMENT TEST YEAR ENDING DECEMBER 31,217 Line No. I Per Book I FY 218 T Texas Division I West Texas Expense Total Four Factor Allocated to SSU O&M SSU O&M Capitalization Rate Capitalization Rate Allocation Factor Allocation Factor SSU Allocated to West Texas Descrip_tig_l'l g>u O&_Mj_h!t;oQr) {~Q_I'l_:_Y!_!l_Qr} t;_)(p~!!-~~- jlabor l;.)(p} (Non-Labor Exp) (2), /3) (2), (3) Total Capital (4) Direct (a) (b) (c) (d)" (b)+ (c) (e) (f} (g) (h) J"' (d) x (g) x (h) (i)" (b*e*g*h) + (kl"' (I)- (i) (c f*g*hl " ss Dallas Pipeline Safety 534,9 699,118 1,234, % 48.33% 7.75% 96.21% 141 SS Dallas Employment & Employee Relations 591, ,625 1,11,66.%.% 6.54% 96.21% 142 SS Dallas Executive Compensation 393, ,733.%.% 6.54% 96.21% 143 SS Dallas Human Resources- Vice Pres 713, ,394 1,393,227.%.% 6.54% 96.21% 145 SS Dallas Compensation & Benefrts 613,38 642,6 1,255,98,%.% 6.54% 96.21% 147 ss Dallas Facilities 554, ,563 1,57, % 31.67% 6.54% 96.21% 148 SS Dallas Employee Development 83,1 97,814 1,773,926.%.% 6.54% 96.21% 1414 SS Tech Training Delivery 924,489 1,434,837 2,359,326.%.% 7.75% 96.21% 1415 SS Tech Training Prog & Cuniculum 486, , ,567,%.% 7.75% 96.21% 1416 SS Dallas Compensation and HRMS 828, ,957 1,247,941.%.% 6.54% 96.21% 1417 ss Dallas Corporate Programs 36,943 42,991 79,934.%.% 6.54% 96.21% 142 SS Dallas EAPC 56,87 56,87.%.% 6.54% 96.21% 1463 SS HR Benefit Variance 148, , % 17.34% 6.54% 96.21% 151 SS Corporate Legal 4,816,766 2,242,895 7,59, % 52.29% 6.54% 96.21% 152 SS Corporate Secretary 1,496,62 1,496,62.%.% 6.54% 96.21% 153 ss Corporate Governmental Affairs 372, , ,878.%.% 7.75% 96.21% 154 ss Corporate Central Records 241,14 49,36 731, % 75.37% 7.75% 96.21% 155 SS Corporate Gas Contract Administration 132,332 66,76 2,46.%.% 7.75% 96.21% 158 SS Corporate Energy Assistance 455, , ,4.%.% 9.79% 96.21% 1821 SS Gas Supply Executive 35,1 52,161 87,273,%.% 7.71% 96.21% 1822 SS Dallas-Regional Gas Supply 272, ,985 46,224,%.% 16.98% 96.21% 1823 SS Dallas Gas Contract Admin 342, , ,646.%.% 9.79% 96.21% 1825 ss Franklin-Gas Control & Storage 367,664 24,9 572,564.%.% 18.74% 96.21% 1826 ss New Orleans Gas Supply & Services 193, , ,96.%.% 9.79% 96.21% 1827 SS Regional Supply Planning 361, , ,131.%.% 9.79% 96.21% 1828 SS Jackson-West Region Gas Supply & Services 81,39 7, ,9.%.%.% 96.21% 1829 ss Franklin-East Region Gas Supply & Ser.rices 49,4 49,4.%.%.% 96.21% 1831 SS Dallas Gas Supply 36,57 171, ,146.%,%.% 96.21% 1833 SS Dallas-Corporate Gas Supply Risk Mgmt 115,81 16, ,552,%.% 9.79% 96.21% 1835 ss Franklin Gas Control 881,83 617,97 1,499,773.%.% 18.74% 96.21% 1836 SS TBS-System Support 254, , ,63.%.% 7.71% 96.21% 1837 SS TBS-Application Support 773,625 34,68 1,114,35,%.% 7.71% 96.21% 1838 ss TBS-Technlcal Support 449,789 2,58 65,369.%.% 7.71% 96.21% 1839 SS TBS-Transportation & Scheduling 214,446 63,1 297,449.%.% 7.71% 96.21% 191 SS Dallas Employee Relocation Exp (Div 2) (6) 41, ,653 83,36,%.% 6.54% 96.21% 191 ss Dallas Employee Relocation Exp (Dlv ) (6) 25,798 8,637 34,435.%.% 9.67% 99.9% 193 SS Dallas Controller- Miscellaneous (1).%.%.% 96.21% 194 SS Dallas Performance Plan (5) 13,451,32 13,451, % 32.3% 6.54% 96.21% 195 SS Outside Director Retirement Cost 3,51,977 3,51,977,%.% 6.54% 96.21% 198 SS Dallas SEBP (5) 1,614,64 1,814,64.% 75.37% 6.54% 96.21% 191 SS Dallas Overhead Capitalized (4) (63,311,95) (63,311,95).%.% 8.33%.% 1913 SS Dallas Fleet and Corporate Sourcing 55, ,3 84, % 54.8% 7.75% 96.21% 1915 SS Dallas Insurance 19,619,57 19,619,57.% 75.37% 6.54% 96.21% 1953 SS Dallas Enterprise Team Meeting 69,714 69,714.%.% 6.54% 96.21% 1954 SS Dallas Culture Council %.% 6.54% 96.21% TOTAL (Sum of ln 1 through ln 99) 74,7()5,!31!5 71,1)97.1!97 146,763,71!2 Allocated Shared Services O&M to West Texas System Direct Total Adjustment to Account 922 (Ln 1 -ln ) Notes: 1. The amount in cost center 193 of {1,586,9) was not allocated during the test period. 2. Factors are displayed only if applicable to West Texas. 3. Based on FY 218 factors, adjusted to the four-factor formula Including Operating Income. 4. The Total represents the amount that would be credlied from Cost Center Allocation percentages have been set to zero to align with GUO No. 117 for cost centers 1132, 194 and Cost center 191 expenses have been divided between General Office (Div 2) and Customer Support (Oiv ) and separately allocated. 7. Cost Centers 1, 1146, 21, and 1417 have been added since the last RRM. The costs in 1417 were formerly in Cost Center Cost Centers 13 and 14 have been deactivated since the last RRM. These costs are now included in Cost Center. 92,15 69,848 24,775 87,666 79,25 94, ,62 175,922 49,72 78,524 5,3 3,578 9,37 444,213 94,171 58,599 54,54 14,943 82,241 64,557 66,364 48,57 13,234 49,166 6,389 2,963 27,411 3,715 82,659 48,244 22,65 52,228 3, ,394 22,354 68,485 44,474 3,33 1, ,277 41,17 273,385 5,666 47,541 69,848 24,775 87,666 79,25 64,88 111,62 175,922 49,72 78,524 5,3 3,578 7, ,936 94,171 58,599 13,433 14,943 82,241 64,557 66,384 48,57 13,234 49,166 6,389 2,963 27,411 3,715 82,659 48,244 22,65 52,228 3, ,9 22, ,596 6,8 32,45 27,558 1,234,514 93,465 34,48 4,387 4, ,423,733 4,464,47 s 1,959,326.43,355 (1.471,29) WP_F-2.7 Page2of2

86 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) (a) Cost Center/Description (b) Cost Center Function (c) SS Dallas Executive Chairman 111 SS Dallas Chief Financial Officer 1 SS Dallas Utility Operations 115 SS Dallas Audit 116 SS Dallas Treasurer 117 SS Dallas Treasury 118 SS Dallas Risk Management 111 SS Dallas Procurement 11 SS Dallas Mail & Supplv 1114 SS Dallas Vice Pres & Controller 1116 SS Dallas Taxation 1117 SS Dallas Acctg Services 1118 SS Dallas Supply Chain 1119 SS Dallas General Accounting 1 SS Dallas Accounts Pavable 11 SS Dallas Plant Accounting 13 SS Dallas Gas Accounting 15 SS Dallas Financial Reporting 16 SS Dallas Payroll 18 SS Dallas Property & Sales Tax 19 SS Dallas Income Tax 113 SS Dallas Business Planning and Analvsis Costs associated with the Executive Chairman Costs associated with the CFO Costs associated with the Senior VP Utility Operations Costs associated with internal and external audit services. Costs associated with the VP, Treasurer who manages Treasury, Procurement and Risk Management. The Treasurer supports the overall financino needs of the Companv for both O&M and capital projects. Costs associated with treasury operations Costs associated with insurance and risk management Costs associated with purchasinq and mail room activities Costs associated with mail services at the Dallas corporate office Costs associated with the VP, Controller Costs associated with the VP, Tax Costs associated with management of General Accounting, Accounts Payable, Plant Accounting and Payroll departments Costs associated with management of products and services for Operations. Costs associated with maintaininq the Qeneral books and records of the Comoanv Costs associated with the processino and pavment of the Company's bills Costs associated with the recordkeeping for the Company's fixed assets Costs associated with the management of utility margin accounting, utility rate administration, and Texas and Louisiana I PiPeline accountino. Costs associated with the preparation and distribution of both internal and external reporting Costs associated with paying the Company's employees Costs associated with the manaqement and handlino of the Companv's propertv and sales tax activities Costs associated with the processing of the Company's income taxes Costs associated with the planning and budgeting activities of the Company I : WP_F Page 1 of 9

87 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) Cost Center/Description (a) (b) SS Dallas Media Relations SS Dallas Investor Relations Cost Center Function (c) Costs associated with communicating customer service and safety messages to the media, business and industry leaders. Costs associated with crisis communications functions including training staff on media relations, interviews, press conferences, and press queries to better inform the public and 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 and reliable benefits of natural qas. Performs a number of significant activities directly related to attracting capital investment and maintaining important relationships with the investing community. 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 Regulation 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 the 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 year to report and explain the financial performance of the Company. 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 Energy's peers. 7.} Providing management and the Company's Board of Directors with information regarding developments in the financial markets and perceptions of investors that may have use in formulating the Company's long and short-term practices and policies. 8.) Serving on the Company's?-member Financial Information 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 the strategy, financial performance, rate and regulatory strategy, etc. to use as a communication tool for all stakeholders. 1.) Overseeing the Stock Transfer Agent's administration of the Company's Direct Stock Purchase Plan and Dividend Reinvestment Plan, as well as ongoing plan redesign to ensure best practices. Providing investors with reliable, comprehensive information about the Company is a critical step in attracting equity investment capital. This information may be especially important in attracting non-institutional equity investors who do not have access to the range of analysts' reports, and attracting such investment 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 in the common Discounted Cash Flow formulation of the cost of capital. In a similar vein, the longer-term benefits derive from providing lower cost equity to maintain and expand the utility ~ystem. WP_F Page 2 of9

88 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) (a) Cost Center/Description (b) Cost Center Function (c) 25 report to shareholders SS Dai-IT Engineering & Operations!Costs associated with the maintenance and support of the Company's data center. Operational services 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 Qualitiy Assurance (testing) processes SS Dallas Gas Purchase Accounting!Costs associated with the accounting for the utility's distribution gas expenses Also includes development and of the interfaces between our internal systems and external vendors; and support and administration of our I business intelligence I reporting environment. Costs inc!ude labor, software maintenance, and related expenses. WP_F Page 3 of9

89 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) (a) 38 Cost Center/Description (b) Cost Center Function (c) 39 development WP _F Page 4 of9

90 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) (a) Cost Center/Description (b) Cost Center Function (c) SS Dallas Customer Service 27 SS Dallas Business Processes and Chanoe Manaoement 28 ss Dallas Customer Revenue Management 29 SS Dallas Pipeline Safety 141 SS Dallas Employment & Employee Relations 142 SS Dallas Executive Compensation 143 SS Dallas Human Resources- Vice Pres 145 SS Dallas Compensation & Benefits 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 exceptionally 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 Atmos. Also includes the outside vendor costs of bill printing, accepting payments and collection agency fees. Costs associated with the oversight of pipe replacement activities, pipeline safety, employee safety and technical trainino activities. Costs associated with recruiting, staffing and onboarding, as well as HR compliance processes, operations, audits, investigations and risk management. Purpose is to develop, implement and administer employment related activities including: employee relations, corporate compliance, AA/EEO plans and reporting, responses to regulatory and legal inquiries (EEOC, OFCCP, Drug and Alcohol, MVR's, Vets 1, etc.) selection, hiring and onboarding. Costs charged to this cost center include labor and related expenses, professional association dues, contract labor, legal fees and professional reference books. These costs are a necessary component in providing human resource services to our employees. Costs associated with the compensation committee of the Board of Directors. Costs incurred for executive compensation work for the Human Resources Committee of the Atmos Energy Board of Directors. Also included are costs related to corporate officer annual physical exams paid by the Company. These costs are a necessary component of providing human resource services to the corporate officers that are necessary for the provision of safe and reliable service. Costs associated with the VP Human Resources. Costs associated with the management of the Company's benefit plans. The purpose is to ensure Atmos provides its employees the most cost effective benefit plans that are 1) competitive within the utility sector and general industry overall, and 2) consistently applied to all employees. Specifica!!y, this cost center is accountable for: Group Medical Plan and Retiree Medical Plan; Group Dental Plan; Group Vision Plan; We!!ness Plans (Compass, Advance Medica! and Natura!!y Slim); Employee Assistance Plan; Group Life Insurance Plan; Optional Life Insurance Coverage (Group Variable Universal Life and Supplemental Term life for employee, dependent spouse and child(ren)); Flexible Benefits Plan; Health Savings Account; Business Travel & Accident Insurance; Service Awards Program; Defined Contribution Plan; Defined Benefit Plan; The Master Trust (holds assets of the defined benefit plan); Taxable and Tax Exempt VEBA Trusts; Pension Payments to 1,5 retirees; Collection of Retiree Medical Contributions; Workers' Compensation; Neuromuscular Corporate Solutions; Group Long-Term Disability Plan; Short-Term Disability; Family Medical Leave; and Supplemental Benefits Plan (executive). WP_F Page 5 of 9

91 File Date: March 3, 218 SHARED SERVICES ("SSU") COST CENTER FUNCTIONS TEST YEAR ENDING SEPTEMBER 3, 216 Line No. Division (1) (a) Cost Center/Description (b) Cost Center Function (c) SS Dallas Facilities Costs associated with the manaqement of the Company's facilities office<el_ 148 SS Dallas Employee Development Costs associated with designing, developing and implementing training and development opportunities for all employees I in areas of customer service, leadership, culture shaping and communication. All training and development costs including those that go into the development and delivery of training programs or participant manuals go into this cost center. This cost center also provides training and development support to both customer support centers and all divisions SS Tech Training Delivery Costs associated with technical training delivery 1415 SS Tech Training Prog & Curriculum Costs associated with the technical training curriculum and program development SS Dallas Compensation and HRMS Costs associated with the management of the Company's compensation plans and maintenance of HR employee database. The purpose is to ensure Atmos provides its employees the most cost effective pay plans that are competitive within the utility and pipeline sector and general industry overall. Costs charged to this cost center include labor and related expenses, software maintenance, salary surveys, professional association dues and contract labor. These costs are a necessary component in providing human resources services to our employees SS Dallas Corporate ProQrams 142 SS Dallas EAPC 1463 SS HR Benefit Variance 151 SS Corporate Legal 152 SS Dallas Corporate Secretary 153 SS Co roo rate Governmental Affairs 154 SS Corporate Records Management Event and traininq materials including printing, supplies and other associated training costs. Costs associated with the Shared Services Employee Activities Planning Committee (EAPC). This committee organizes various Dallas employee-related team building activities throughout the year, including the Company's Lincoln Center United Way campaign. This includes meals incurred by the EAPC as well as office supplies and materials. This does not include employee compensation for their work on the EAPC. These costs are a necessary component to providing human resource services to our employees and as such are reasonable and necessary to the provision of safe and reliable service. Used to accumulate the differences between the actual cost of employee benefits and the budgeted benefits rate _j Costs associated with the Corporate Legal department, which includes the SVP, General Counsel & Corporate Secretary I Costs associated with the Board of Directors and shareholders. Costs such as Director's fees, board meeting expenses, proxy solicitation expenses and NYSE fees are recorded in this cost center. Costs associated with governmental relations Costs associated with the storage and maintenance of Company records SS Corporate Gas Contract Administration 158 SS Corporate Energy Assistance 1821 SS Gas Supply Executive 1822 SS Dallas-Reaional Gas Supply Costs associated with maintaining and administrating the Company's gas contracts Costs associated with planning, organizing, developing, monitoring and overseeing all aspects of the Company's Energy Assistance and Customer Advocacy Program. Costs associated with the VP, Gas Supply & Services Costs associated with the manaaement of the R. f!ional Slll'l'il' d"qartment for West Texas and Mid-Tex. WP _F Page 6 of9