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03-07-08-Resolution-Approving Settlement with Atmos Energy-03/03/2008RESOLUTION #R 03-07-08 A RESOLUTION OF THE OF THE CITY OF SANGER APPROVING A SETTLEMENT AGREEMENT BETWEEN ATMOS ENERGY CORPORATION, MID-TEX DIVISION AND ATMOS TEXAS MUNICIPALITIES; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING RATE ADJUSTMENTS CONSISTENT WITH THE SETTLEMENT AGREEEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Sanger ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos Energy Corporation — Mid -Tex Division ("Atmos") rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has participated in prior cases regarding Atmos as a part of a coalition of cities known as the Atmos Texas Municipalities ("ATM"), including Railroad Commission Gas Utilities ("GUD") Docket No. 9400, numerous filings by Atmos pursuant to Section 104.301 of GURA, and GUD Docket No. 96709 and WHEREAS, ("Atmos") filed a Statement of Intent with the City on or about September 20, 2007 to increase its system -wide, annual revenue requirement, by approximately $51.9 million; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in ATM and authorized the hiring of lawyers and rate experts; and WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad Commission of Texas, which has docketed the appeal along with other appeals as GUD No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atmos, and WHEREAS, Atmos and ATM have entered into a Settlement Agreement resolving all disputes regarding the appropriate rates, terms and conditions for Atmos; and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the Settlement Agreement, it has reestablished its original jurisdiction over the rates of Atmos by issuing a Show Cause against Atmos; and WHEREAS, the City has given reasonable notice to Atmos regarding the consideration of the Settlement Agreement and WHEREAS, the Settlement Agreement will resolve several previously -litigated cases and will resolve all issues currently pending before the Railroad Commission in GUD No. 9762, as well as issues relating to franchise agreements with Atmos; and WHEREAS, the Settlement Agreement will result in Atmos receiving a $10 million system -wide rate increase, which is significantly smaller than the $51.9 million sought by Atmos, and WHEREAS, the Settlement Agreement creates an experimental and expedited rate review process ,called the Rate Review Mechanism ("RRM") in lieu of the Section 104.301 filings, which will allow for a consideration of both increases and decreases in expenses and investments and will allow for increased participation by City regulators in future rate cases,$ and WHEREAS, the RRM will also allow Atmos a greater opportunity to earn its authorized rate of return, but no more, by use of a "true -up" calculation contained within the RRM tariff; and WHEREAS, the Settlement Agreement calls for a reduction in customer charges for residential and commercial customers and WHEREAS, the Settlement Agreement excludes specified expenses from recovery by Atmos; and WHEREAS, the Settlement Agreement contains a "most -favored -nations" clause that provides City with the benefit of any other RRM settlement or any other settlement of the issues related to the September 20, 2007 Statement of Intent or GUD No. 9672, under certain conditions; WHEREAS, the Settlement Agreement authorizes other changes in rates and tariffs that should enable Atmos to provide efficient service at reasonable rates and provides for the reimbursement of ATM expenses; and WHEREAS, the Settlement Agreement provides for quarterly meetings between Atmos and City representatives in order to improve communication and cooperation; and WHEREAS, the Settlement Agreement provides a mechanism for the City to amend or renew its franchise agreement with Atmos at 5% of Gross Revenues; and WHEREAS, the Settlement Agreement resolves numerous cases currently pending on appeal and provides for payment to ATM associated with such cases; and WHEREAS, the City desires to avoid the cost and uncertainty of litigating the cases at the Railroad Commission and the courts; and WHEREAS, the ATM lawyers as well as numerous representatives from the ATM Cities have negotiated with Atmos on several occasions; and WHEREAS, the ATM lawyers have recommended the approval of the Settlement Agreement: and WHEREAS, the City has examined the Settlement Agreement and its attached tariffs, rates, terms and conditions; and WHEREAS, the Settlement Agreement as a whole is consistent with the public interest; and WHEREAS, the tariffs, rates, terms and conditions attached to the Settlement Agreement should be found to be just, reasonable and in the public interest. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER THAT: Section 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos are unreasonable and determines that such rates, terms and conditions should be changed. Section 3. The City Council finds that the Settlement Agreement, which is attached hereto and incorporated herein as Attachment A, is in the public interest and is hereby endorsed in all respects. Section 4. The City Council finds that the new tariffs, which are attached hereto and incorporated herein as Attachment B, are just and reasonable and are hereby adopted. Section 5. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Resolution, it is hereby repealed. Section 6. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 7. This resolution shall become effective from and after its passage with rates authorized by the Attached Tariffs to be effective in accordance with the terms of the Settlement Agreement. Section 8. A copy of this Resolution shall be sent to Atmos Mid -Tex, care of Joe T. Christian, Director of Rates, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75204, and to Jim Boyle, Counsel to ATM, Herrera and Boyle, PLLC, 860 Congress Avenue, Suite 1120, Austin, TX 78701. PASSED AND APPROVED this 3 day of March 2008, ATTEST: Rosalie Chavez, City OF..' drA',! oe Higgs, M4 / J M Tariff for Gas Service Atmos Energy Corp., Mid -Tex Division 5420 LBJ Freeway, Suite 1862 Dallas, Texas 75240 TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: TABLE OF CONTENTS APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION. DATE. EFFECTIVE DATE: 04/04/2008 PAGE: 1 OF 1 I. UTILITY OPERATIONS II. CITIES AND COUNTIES SERVED III. DEFINITIONS IV. GAS SERVICE RATES &RIDERS Rate R -Residential Sales Rate C — Commercial Sales Rate I — Industrial Sales Rate T — Transportation Rider CT — Competitive Transport Rider GCR — Gas Cost Recovery Rider FF — Franchise Fee Adjustment Rider SUR — Surcharges Rate LEP — Line Extension Policy Rate M — Miscellaneous Charges Rider RA — Retention Adjustment Rider TAX — Tax Adjustment Rider WNA — Weather Normalization Adjustment Rider RRM — Rate Review Mechanism Rider CEE — Conservation and Energy Efficiency V. SERVICE RULES AND REGULATIONS Railroad Commission Tariff No. TARIFF FOR GAS SERVICE RATE SCHEDULE: Utility Operations ATMOS ENERGY CORP., MID-TEX DIVISION APPLICABLE TO: I Entire System (except Environs areas I REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 04/04/20013 PAGE: 1 OF 1 I. UTILITY OPERATIONS: Atmos Energy Corp., Mid -Tex Division owns and operates a natural gas distribution system that provides natural gas service in 111 counties in Texas. The following will respond to inquiries regarding provisions of this Tariff for Gas Service: Mr. David J. Park Vice President, Rates & Regulatory Affairs Atmos Energy Corporation 5420 LBJ Freeway, Suite 1862 Dallas, Texas 75240 Telephone: (214) 206-2568 Email Address: david.park@atmosenergy.com TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: ( C%ties and Counties APPLICABLE T0: Entire System (except Environs areas REVISION: and the City of Dallas) DATE. EFFECTIVE DATE: 1 04/04/2008 PAGE: 1 OF 5 II. CITIES AND COUNTIES SERVED BY ATMOS ENERGY CORP., MID-TEX DIVISION. CITIES SERVED BY ATMOS ENERGY CORP., MID-TEX DIVISION: Abbott Blue Mound Clyde Abilene Blue Ridge Cockrell Hill Addison Blum Coleman Alba Bogata College Station Albany Bonham Colleyville Allen Bowie Collinsville Alma Boyd Colorado City Alvarado Brazos Bend Comanche Alvord Bremond Commerce Angus Bridgeport Como Anna Bronte Coolidge Annona Brownsboro Cooper Anson Brownwood Coppell Archer City Bruceville-Eddy Copper Canyon Argyle Bryan Copperas Cove Arlington Buckholts Corinth Athens Buffalo Corral City Aubrey Buffalo Gap Corsicana Aurora Burkburnett Covington Austin Burleson Crandall Avery Burnet Crawford Azle Byers Cross Roads Baird Caddo Mills Crowley Balch Springs Caldwell Cumby Ballinger Calvert Dalworthington Gardens Bandera Cameron Dawson Bangs Campbell Decatur Bardwell Canton DeLeon Barry Carbon Denison Bartlett Carrollton Denton Bartonville Cashion Community Deport Bedford Cedar Hill DeSoto Bellevue Cedar Park Detroit Bellmead Celeste Dodd City Bells Celina Double Oak Belton Centerville Dublin Benbrook Chandler Duncanville Benjamin Chico Early Bertram Childress Eastland Beverly Hills Chillicothe Ector Blackwell Cisco Edgecliff Village Blanket Clarksville Edom Blooming Grove Cleburne Electra Blossom Clifton Emhouse TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Cities and Counties APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 2 OF 5 Emory Hawley Lavon Ennis Hearne Lawn Euless Heath Leander Eustace Henrietta Leona Evant Hewitt Leonard Everman Hickory Creek Lewisville Fairfield Hico Lexington Fairview Highland Park Lincoln Park Farmers Branch Highland Village Lindsay Farmersville Hillsboro Lipan Fate Holland Little Elm Ferris Holliday Little River Academy Flower Mound Honey Grove Llano Forest Hill Howe Lometa Forney Hubbard Lone Oak Fort Worth Hurst Longview Franklin Hutchins Loraine Frankston Hutto Lorena Fredericksburg Impact Lott Frisco Iowa Park Lueders Frost Iredell Mabank Gainesville Irving Madisonville Garland Italy Malakoff Garrett Itasca Malone Gatesville Jewett Manor Georgetown Josephine Mansfield Glen Rose Joshua Marble Falls Glenn Heights Justin Marlin Godley Kaufman Marshall Creek Goldthwaite Keene Mart Goodlow Keller Maypearl Gordon Kemp McGregor Goree Kennedale McKinney Gorman Kerens Megargel Granbury Kerrville Melissa Grand Prairie Killeen Meridian Grandview Knollwood Merkel Granger Knox City Mesquite Grapevine Kosse Mexia Greenville Krum Midlothian Groesbeck Kurten Midway Gunter Lacy -Lakeview Miles Gustine Ladonia Milford Haltom City Lake Dallas Mobile City Hamilton Lake Worth Moody Hamlin Lakeport Moran Harker Heights Lakeside Morgan Haskell Lampasas Muenster Haslet Lancaster Munday TARIFF FOR GAS SERVICE RATE SCHEDULE: Cities and Counties ATMOS ENERGY CORP., MID=TEX DIVISION APPLICABLE T0: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: � 04/04/2008 PAGE: 3 OF 5 Murchison Retreat Star Harbor Murphy Rhome Stephenville Nevada Rice Strawn New Chapel Hill Richardson Streetman Newark Richland Sulphur Springs Newcastle Richland Hills Sun Valley Nocona Riesel Sunnyvale Nolanville Rio Vista Sunset Normangee River Oaks Sweetwater North Richland Hills Roanoke Talty Northlake Robert Lee Taylor Novice Robinson Teague O'Brien Roby Tehuacana Oak Leaf Rochester Temple Oakwood Rockdale Terrell Oglesby Rockwall The Colony Olney Rogers Thorndale Ovilla Roscoe Thornton Palestine Rosebud Thrall Palmer Ross Throckmorton Pantego Rotan Tioga Paradise Round Rock Toco Paris Rowlett Tom Bean Parker Roxton Trent Pecan Gap Royse City Trenton Pecan Hill Rule Trinidad Penelope Runaway Bay Trophy Club Petrolia Sachse Troy Pflugerville Sadler Tuscola Pilot Point Saginaw Tye Plano Saint Jo Tyler Pleasant Valley San Angelo University Park Point San Saba Valley Mills Ponder Sanctuary Valley View Post Oak Bend Sanger Van Alstyne Pottsboro Sansom Park Venus Powell Santa Anna Vernon Poynor Savoy Waco Princeton Seagoville Walnut Springs Prosper Seymour Watauga Putnam Shady Shores Waxahachie Quanah Sherman Weinert Quinlan Snyder West Quitman Somerville Westlake Ranger South Mountain Westover Hills Ravenna Southlake Westworth Village Red Oak Southmayd White Settlement Reno (Lamar County) Springtown Whitehouse Reno (Parker County) Stamford Whitesboro TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Cities and Counties APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 4 OF 5 Whitewright Whitney Wichita Falls Wilmer Windom Winters Nixon Valley Wolfe City Woodway Northam Wylie Yantis TARIFF FOR GAS SERVICE RATE SCHEDULE: Cities and Counties ATMOS ENERGY CORP., MID-TEX DIVISION APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 04/04/2008 I PAGE: 5 OF 5 COUNTIES SERVED BY ATMOS ENERGY CORP., MI_D-TEX DIVISION: Anderson Grayson Panola Archer Gregg Parker Bandera Grimes Pecos Baylor Hamilton Rains Bell Hardeman Red River Bosque Harris Reeves Brazos Harrison Robertson Brown Haskell Rockwall Burleson Henderson Runnels Burnet Hill Rusk Callahan Hood San Saba Cherokee Hopkins Schleicher Childress Houston Scurry Clay Hunt Shackelford Coke Jack Smith Coleman Johnson Somervell Collin Jones Stephens Comanche Kaufman Sterling Cooke Kendall Stonewall Coryell Kerr Tarrant Crane Knox Taylor Dallas Lamar Throckmorton Delta Lampasas Tom Green Denton Lee Travis Eastland Leon Upton Edwards Limestone Upshur Ellis Llano Van Zandt Erath Madison Walker Falls McLennan Waller Fannin Midland Ward Fisher Milam Wichita Foard Mills Wilbarger Fort Bend Mitchell Williamson Franklin Montague Winkler Freestone Navarro Wise Gillespie Nolan Wood Glasscock Palo Pinto Young TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: 111. DEFINITIONS: Definitions Entire System 05/25/04 REVISION: DATE: PAGE: 1 OF 3 AGREEMENT FOR GAS SERVICE. A written contract between Company and Customer under which Company provides Gas Service. APARTMENT HOUSE. A building or buildings containing more than four Dwelling Units all of which are rented primarily for nontransient use, with rental paid at intervals of one week or longer. Apartment House includes residential condominiums, whether rented or owner occupied. APPLICANT. A person or entity who requests Gas Service from Company. The inauguration of Gas Service to an Applicant by Company does not indicate that Company has inspected Customer's gas piping or appliances or determined the piping and appliances to be safe or adequate. CITY GATE CUSTOMER. A customer who purchases City Gate Service under Rate CGS. CODES. Codes governing gas installations. COMMERCIAL CUSTOMER. A customer who has a North American Industry Classification System Code beginning with 11, 22 (other than electric generation), 23, 41-46, 48, 49, 51-56, 61, 62, 11, 1 Z, 81, or 91-93 or any other end -use customer to which no other rate schedule applies. COMMISSION. The Railroad Commission of Texas. COMPANY. Atmos Energy Corp., Mid -Tex Division, its successors, and its assigns. CUSTOMER. An individual, partnership, association, joint venture, corporation, etc., or governmental agency who is receiving or who is receiving the benefit of gas service at a specified point of delivery. CUSTOMER'S GAS INSTALLATION. All pipes, equipment, or facilities of any kind on Customer's side of the Point of Delivery, except Compan�s metering equipment, used by Customer in taking Gas Service. DISTRIBUTION SYSTEM. That portion of the Atmos Energy Corp. Gas System that is comprised of distribution pipelines, Main Lines, and Service Lines that are located on the load side of city gates. DWELLING UNIT. A room or rooms suitable for occupancy as a residence containing kitchen and bathroom facilities. GAS DAY. The period beginning at 9:00 a.m. on one calendar day and ending at 9:00 a.m. on the following calendar day. GAS MAINS. Company's distribution pipelines that receive natural gas from city gate stations and transport such natural gas to Service Lines. GAS SERVICE. The transportation and provision of natural gas made available by Company at the Point of Delivery. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: Definitions Entire System 05/25/04 REVISION: DATE: PAGE: 2 OF 3 INDUSTRIAL CUSTOMER. A customer who has a North American Industry Classification System Code beginning with 21, 22 (electric generation only), 31, 32, or 33. LOCAL DISTRIBUTION COMPANY. An entity that operates a retail gas distribution system other than Atmos Energy Corp., Mid -Tex Division. MAKE-UP VOLUMES. The quantity of gas. specifically and separately nominated by customer and confirmed by Company to resolve, either in whole or in part, any imbalance under Rate CGS, Rate PT, or Rate T. METER. A device, or devices, together with any required auxiliary equipment, for measuring Gas Service. PIPELINE SYSTEM. That portion of the Atmos Energy Corp. Gas System that provides pipeline transmission. The Pipeline System is upstream from city gates and feeds into the Distribution System. POINT OF DELIVERY. Point at which natural gas leaves the Company's facilities. At Company's option, locations where the gas installation has multiple connections to Company's facilities may be considered one point of delivery for billing purposes. RATE SCHEDULE. A statement of the method of determining charges for Gas Service, including the conditions under which such method applies. RECEIPT NOMINATION. The daily quantity of gas requested by a shipper to be delivered into the Pipeline System by the shipper as specified in the associated Transportation Agreement between the shipper and Atmos Energy Corp., Mid -Tex Division. REGULATORY AUTHORITY. An incorporated city or town, or an agency of the county, state, or federal government. RESIDENTIAL CUSTOMER. Unless otherwise specified in the rate schedule, a customer whose service is separately and individually metered in an individual private Dwelling Unit or in an individually metered apartment and who uses natural gas primarily for Residential End Uses and occupies the building. RESIDENTIAL END USES. Heating, space heating, cooking, water heating, and other similar type uses in a building or dwelling. RESIDENTIAL SALES SERVICE. Gas service provided to any customer whose service is separately and individually metered and who uses natural gas primarily for Residential End Uses and occupies the building. STATE AGENCY. (A) a department, commission, board, office, or other agency that: (i) is in the executive branch of state government; (ii) has authority that is not limited to a geographical portion of the state, and (iii) was created by the Texas Constitution or a statute of this state; (B) a university system or institution of higher education as defined by Section 61.003, Education Code, other than a public junior college; or (C) a river authority created under the Texas Constitution or a statute of this state. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: Definitions Entire System 05/25/04 ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 3 OF 3 TEMPORARY GAS SERVICE. Gas Service provided to Customer for a single, continuous period of time, which is less than twelve consecutive months, except that Gas Service provided during construction activities, even though provided for a continuous period of time in excess of twelve months, is considered to be Temporary Gas Service. TRANSPORTATION SERVICE CUSTOMER. Customers who procure their own gas supplies and for whom the Company provides delivery service on the Atmos Energy Corp. System. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE: Gas Service Rates. APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION. DATE. EFFECTIVE DATE: 04/04/2008 PAGE: 1 OF 1 IV. GAS SERVICE RATES: TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate R - Residential Sales APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 1 04/04/2008 . PAGE: 1 OF 1 RATE R -RESIDENTIAL SALES Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer maybe required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below: Charge Customer Charge per Bill Commodity Charge —All Mcf Amount $ 10.69 per month $1.2710 per Mcf i Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Companys Tariff for Gas Service. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: Rate C - Commercial Sales Entire System (except Environs areas and the City of Dallas) 04/04/2008 RATE C -COMMERCIAL SALES ATMOS ENERGY CORP., MID=TEX DIVISION REVISION: DATE: PAGE: 1 OF 1 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 3,000 Mcf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Mcf charges to the amounts due under the riders listed below. Charge Customer Charge per Bill Commodity Charge - AIIMcf Amount $ 20.28 per month $ 0.7104 per Mcf Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company s Tariff for Gas Service. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate I — Industrial Sales APPLICABLE T0: Entire System (except Environs areas REVISION. and the City of Dallas) DATE. EFFECTIVE DATE: 104/04/2008 RATE I -INDUSTRIAL SALES PAGE: 1 OF 2 Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 3,500 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 3,500 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge: AFnount Customer Charge per Meter $ 425.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.1933 per MMBtu Next 3,500 MMBtu $ 0.1410 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0302 per MMBtu Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer's deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE: Rate 1— Industrial Sales APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE. EFFECTIVE DATE: 104/04/2008 I PAGE: 2 OF 2 Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey" is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate T —Transportation APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE. ( 04/04/2008 1 PAGE: 1 OF 2 RATE T -TRANSPORTATION Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., Mid -Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer's agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Customer Charge per Meter First 0 MMBtu to 1,500 MMBtu Next 3,500 MMBtu All MMBtu over 5,000 MMBtu $ 425.00 per month $ 0.1933 per MMBtu $ 0.1410 per MMBtu $ 0.0302 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part (b) of Rider GCR. Rate Review Mechanism: Plus or Minus an amount for rates as calculated in accordance with Rider RRM. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu between the highest and lowest "midpoint' price for the Katy point listed in Platts Gas Dailyin the table entitled TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE: Rate T — Transportation APPLICABLE T0: Entire System (except Environs areas and the City of Dallas) REVISION: DATE. EFFECTIVE DATE: 04/04/2008 PAGE: 2 OF 2 "Daily Price Survey during such month, for the MMBtu of Customer's monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer's receipt quantities for the month. 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 Company200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled "Daily Price Survey." Replacement Index In the event the "midpoint" or "common" price for the Katy point listed in Platts Gas Daily in the table entitled "Daily Price Survey' is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company's Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: Rider CT - Competitive Transportation Service APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE% 05/25/04 PAGE: 1 OF 1 RIDER CT -COMPETITIVE TRANSPORTATION SERVICE Application Applicable at Company's sole discretion to any Customer that otherwise qualifies for service under Rate PT or Rate T and that in Company's sole judgement would not be served by Company but for the pricing provided pursuant to this Rider. Applicable only to Points of Delivery that meet the requirements of the previous paragraph. Monthly Rate At Compan�s sole discretion, a discount to the otherwise applicable monthly rate may be offered to any qualifying Customer subject to the special conditions set forth herein. The discounted rate applicable to transportation service under this provision shall be specified in the associated transportation agreement. Customer must furnish Company a notarized affidavit and supporting information confirming to the satisfaction of the Company that Customer qualifies for discounted service pursuant to TUC 104.003(b). Agreement A transportation agreement is required. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate GCR — Gas Cost Recovery APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE. EFFECTIVE DATE: 10/01/2008 PAGE: 1 OF 2 Rider GCR -Gas Cost Recovery Applicable to Rate R, Rate C, and Rate I for all gas sales made by Company, and applicable to Rate R, Rate C, Rate I, and Rate T for recovery of Pipeline System costs. The total gas cost recovery amount due is determined by adding the gas cost calculated in Section (a) below and the pipeline cost calculated in Section (b) below. The amount due for gas cost (Section (a)) is determined by multiplying the Gas Cost Recovery Factor (GCRF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to recover actual costs. The amount due for pipeline cost (Section (b)) is determined by multiplying the Pipeline Cost Factor (PCF) by the Customer's monthly volume. For Customers receiving service under Rate R and Rate C, monthly volume will be calculated on an Mcf basis. For Customers receiving service under Rate I and Rate T, monthly volume will be calculated on an MMBtu basis and the quantities will be adjusted as necessary to recover actual costs. (a) Gas Cost Method of Calculation The monthly gas cost adjustment is calculated by the application of a Gas Cost Recovery Factor (GCRF), as determined with the following formula: GCRF =Estimated Gas Cost Factor (EGCF) +Reconciliation Factor (RF) +Taxes (TXS) +Adjustments (ADJ) EGCF =Estimated cost of gas, including lost and unaccounted for gas attributed to residential, commercialI and industrial sales, and any reconciliation balance of unrecovered gas costs, divided by the estimated total residential, commercial, and industrial sales. RF =Calculated by dividing the difference between the Actual Gas Cost Incurred, inclusive of interest, over the preceding twelve-month period ended June 30 and the Actual Gas Cost Billed over that same twelve-month period by the estimated total residential, commercial, and industrial sales for the succeeding October through June billing months. Actual Gas Cost Incurred =The sum of the costs booked in Atmos Energy Corp., Mid -Tex Division account numbers 800 through 813 and 858 of the NARUC Uniform System of Accounts, including the net impact of injecting and withdrawing gas from storage. Also includes a credit or debit for any out -of -period adjustments or unusual or nonrecurring costs typically considered gas costs and a credit for amounts received as Imbalance Fees or Curtailment Overpull Fees, Actual Gas Cost Billed =EGCF multiplied by the monthly volumes billed to Residential, Commercial and Industrial Sales customers, less the total amount of gas cost determined to have been uncollectible and written off which remain unpaid for each month of the reconciliation period. Any amount remaining in the reconciliation balance after the conclusion of the period of amortization will be maintained in the reconciliation balance and included in the collection of the next RF. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate GCR — Gas Cost Recovery APPLICABLE T0: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 110/01/2008 PAGE: 2 OF 2 Atmos Energy shall file annual reports with the Commission, provng by month the following amounts: Gas Cost Written Off. Margin Written Off, Tax and Other Written Off, Total Written Off, Gas Cost Collected and Margin Collected. TXS =Any statutorily imposed assessments or taxes applicable to the purchase of gas divided by the estimated total residential, commercial, and industrial sales. ADJ =Any surcharge or refund ordered by a regulatory authority, inclusive of interest, divided by the estimated total residential, commercial, and industrial sales. (b) Pipeline Cost Method of Calculation Each month, a Pipeline Cost Factor (PCF) is calculated separately for each Pipeline Cost Rate Class listed below. The formula for the PCF is: PCF = PP / S, where: P =Estimated monthly cost of pipeline service calculated pursuant to Rate CGS D =Pipeline service allocation factor for the rate class as approved in the Company's most recent rate case, as follows: :)Pipeline Cost Rate Class Allocation Factor D Rate R - Residential Service .634783 Rate C - Commercial Service .302805 Rate I - Industrial Service and Rate T - Transportation Service .062412 A Adjustment applied in the current month to correct for the difference between the actual and estimated pipeline cost revenue of the second preceding month, calculated by the formula: A = R - (C - A2), where: R =Actual revenue received from the application of the PP component in the second preceding month. C =Actual pipeline costs for the second preceding month. A2 =The adjustment (A) applied to the PP component in the second preceding month. S =Estimated Mcf or MMBtu for the rate class for the current billing month. The PCF is calculated to the nearest 0.0001 cent. The Pipeline Cost to be billed is determined by multiplying the Mcf or MMBtu used by the appropriate PCF. The Pipeline Cost is determined to the nearest whole cent. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: Rider FF - Franchise Fee Adjustment APPLICABLE TO: I Entire System I REVISION: DATE. EFFECTIVE DATE: 105/25/04 I PAGE: 1 OF 1 RIDER FF -FRANCHISE FEE ADJUSTMENT Application Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a municipal franchise fee upon Company for the Gas Service provided to Customer. Monthly Adjustment Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees payable for the Gas Service provided to Customer by Company. Municipal franchise fees are determined by each municipality's franchise ordinance. Each municipality's franchise ordinance will specify the percentage and applicability of franchise fees. From time to time, Company will make further adjustments to Customer's bill to account for any over- or under -recovery of municipal franchise fees by Company. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER. Rider SUR - Surcharges APPLICABLE TO: Entire System REVISION. DATE. EFFECTIVE DATE: 05/25/04 PAGE: 1 OF 1 RIDER SUR -SURCHARGES Application Applicable to customer classes as authorized by the state or any governmental entity, a municipality, or a regulatory authority pursuant to any statute, ordinance, order, rule, contract, or agreement. Monthly Calculation Surcharges will be calculated in accordance with the applicable statute, ordinance, order, rule, contract, or agreement. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: LINE EXTENSION POLICY Entire System 05/25/04 ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 1 OF 5 For an effective date for a specific area, please refer to the cross reference list provide on March 9, 2005. Please contact the Railroad commission of Texas Market Oversight Division for a copy of the cross reference list. Main Line Extension Rate (9005): Application Applicable to all Residential and Commercial Customers located within the city limits of: Abbott, Abilene, Addison, Albany, Allen, Alvarado, Alvord, Anna, Anson, Archer City, Argyle, Arlington, Athens, Aurora, Austin, Baird, Balch Springs, Ballinger, Bangs, Bartlett, Bedford, Bellevue, Bellmead, Bells, Belton, Benjamin, Beverly Hills, Blackwell, Blanket, Blue Ridge, Blum, Bowie, Boyd, Bremond, Bridgeport, Bronte, Brownwood, Bruceville-Eddy, Bryan, Buckholts, Buffalo, Buffalo Gap, Burkburnett, Byers, Caldwell, Calvert, Cameron, Carbon, Carrollton, Cashion Community, Cedar Hill, Cedar Park, Celina, Centerville, Chico, Childress, Chillicothe, Cisco, Clarksville, Cleburne, Clifton, Clyde, Cockrell Hill, Coleman, College Station, Colleyville, Colorado City, Comanche, Coolidge, Coppell, Copper Canyon, Copperas Cove, Corinth , Corral City, Covington, Crawford, Cross Roads, Dallas, Dalworthington Gardens, Decatur, DeLeon, Denison, Denton, Desoto, Double Oak, Dublin, Duncanville, Early, Eastland, Electra, Ennis, Euless, Fairfield, Fairview, Farmers Branch, Farmersville, Fate, Flower Mound, Franklin, Frisco, Gainesville, Garland, Gatesville, Georgetown, Glen Rose, Glenn Heights, Godley, Gordon, Goree, Gorman, Granbury, Grand Prairie, Granger, Grapevine, Groesbeck, Hamlin, Harker Heights, Haskell, Hawley, Hearne, Heath, Henrietta, Hewitt, Hickory Creek, Highland Park, Highland Village, Hillsboro, Holland, Holliday, Howe, Hubbard, Hurst, Hutchins, Hutto, Impact, Iowa Park, Irving, Itasca, Jewett, Josephine, Joshua, Justin, Keene, Keller, Killeen, Knox City, Kosse, Krum, Lacy -Lakeview, Lake Dallas, Lancaster, Lavon, Lawn, Leander, Leona, Lewisville, Lexington, Lincoln Park, Lipan, Little Elm, Little River - Academy, Loraine, Lorena, Lott, Lueders, Madisonville, Malakoff, Malone, Manor, Mansfield, Marlin, Marshall Creek, Mart, Maypearl, McGregor, McKinney, Megargel, Melissa, Meridian, Merkel, Mesquite, Mexia, Midlothian, Midway, Miles, Mobile City, Moody, Moran, Morgan, Munday, Murphy, Nevada, Newark, Newcastle, Nocona, Nolanville, Normangee, Northlake, Novice, Oakwood, O'Brien, Oglesby, Olney, Ovilla, Palestine, Pantego, Paradise, Parker, Pecan Hill, Penelope, Petrolia, Pflugerville, Pilot Point, Plano, Pleasant Valley, Ponder, Poynor, Princeton, Prosper, Putnam, Quanah, Ranger, Red Oak, Reno = Lamar Co., Reno - Parker Co., Rhome, Richardson, Riesel, Rio Vista, Roanoke, Robert Lee, Robinson, Roby, Rochester, Rockdale, Rockwall, Rogers, Roscoe, Rosebud, Ross, Rotan, Round Rock, Rowlett, Royse City, Rule, Runaway Bay, Sachse, Saint Jo, San Angelo, Sanctuary, Sanger, Santa Anna, Seagoville, Seymour, Shady Shores, Sherman, Snyder, Somerville, South Mountain, Southlake, Springtown, Stamford, Stephenville, Strawn, Streetman, Sulphur Springs, Sunnyvale, Sunset, Sweetwater, Taylor, Teague, Tehuacana, Temple, The Colony, Thorndale, Thornton, Thrall, Throckmorton, Trent, Trenton, Trophy Club, Troy, Tuscola, Tye, University Park, Valley Mills, Vernon, Waco, Waxahachie, Weinert, West, Westlake, Westminster, Whitewright, Whitney, Wichita Falls, Wilmer, Winters, Woodway, Wortham and Wylie. Also applicable to Residential and Commercial Customers located in the environs areas of: Azle Environs, Abbott Environs, Abilene Environs, Acme (Unincorporated), Addison Environs, Albany Environs, Allen Environs, Alvarado Environs, Alvord Environs, Anna Environs, Anson Environs, Archer City Environs, Argyle Environs, Arlington Environs, Aubrey • Environs, Aurora Environs, Austin Environs, Avoca (Unincorporated), Baird Environs, Balch Springs Environs, Ballinger Environs, Bangs Environs, Bartlett Environs, Bedford Environs, Bellevue Environs, Bellmead Environs, Belton Environs, Benbrook Environs, Benjamin Environs, Beverly Hills Environs, Blackwell Environs, Blanket Environs, Blue Mound Environs, Blue Ridge Environs, Blum Environs, Bowie Environs, Boyd Environs, Bremond Environs, Bridgeport Environs, Bronte Environs, Brownwood Environs, Bruceville-Eddy Environs, Brushy Creek (Unincorporated), Bryan Environs, Buckholts Environs, Buffalo Environs, Buffalo Gap Environs, Burkburnett Environs, Burleson Environs, Buttercup Creek (Unincorporated), Byers Environs, Caldwell Environs, Calvert Environs, Cameron Environs, Carbon Environs, Carey (Unincorporated), Carlsbad (Unincorporated), Carrollton Environs, Cashion Community TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE. LINE EXTENSION POLICY APPLICABLE TO. Entire System REVISION. DATE. EFFECTIVE DATE: 05/25/04 PAGE: 2 OF 5 Environs, Cedar Hill Environs, Cedar Park Environs, Celina Environs, Centerville Environs, Chico Environs, Childress Environs, Chillicothe Environs, Chilton (Unincorporated), Cisco Environs, Cleburne Environs, Clifton Environs, Clyde Environs, Cockrell Hill Environs, Coleman Environs, College Station Environs, Colleyville Environs, Colorado City Environs, Comanche Environs, Coolidge Environs, Coppell Environs, Copper Canyon Environs, Copperas Cove Environs, Corinth Environs, Corral City Environs, Covington Environs, Crawford Environs, Cross Roads Environs, Crowley Environs, Dallas Environs, Dalworthington Gardens Environs, Decatur Environs, DeLeon Environs, Denton Environs, Desdamona (Unincorporated), DeSoto Environs, Double Oak Environs, Dublin Environs, Duncanville Environs, Early Environs, Eastland Environs, Edgecliff Village Environs, Electra Environs, Elm Mott (Unincorporated), Euless Environs, Everman Environs, Fairfield Environs, Fairview Environs, Farmers Valley (Unincorporated), Farmersville Environs, Fate Environs, Flower Mound Environs, Forest Hill Environs, Fort Worth Environs, Framers Branch Environs, Franklin Environs, Frisco Environs, Garland Environs, Gatesville Environs, Georgetown Environs, Glen Rose Environs, Glenn Heights Environs, Godley Environs, Goodlett (Unincorporated), Gordon Environs, Goree Environs, Gorman Environs, Granbury Environs, Grand Prairie Environs, Granger Environs, Grapevine Environs, Groesbeck Environs, Hamlin Environs, Harker Heights Environs, Harrold (Unincorporated), Haskell Environs, Haslet Environs, Hawley Environs, Hearne Environs, Heath Environs, Henrietta Environs, Hermleigh (Unincorporated), Hewitt Environs, Hickory Creek Environs, Highland Park Environs, Highland Village Environs, Hillsboro Environs, Holland Environs, Holliday Environs, Horseshoe (Unincorporated), Hubbard Environs, Hurst Environs, Hutchins Environs, Hutto Environs, Impact Environs, Iowa Park Environs, Irving Environs, Itasca Environs, Jean (Unincorporated), Jewett Environs, ,Josephine Environs, Joshua Environs, Justin Environs, Kamay (Unincorporated), Keene Environs, Keller Environs, Kennedale Environs, Killeen Environs, Kirkland (Unincorporated), Knox City Environs, Kosse Environs, Krum Environs, Lacy -Lakeview Environs, Lake Dallas Environs, Lake Worth Environs, Lakeside Environs, Lancaster Environs, Lavon Environs, Lawn Environs, Leander Environs, Leona Environs, Lewisville Environs, Lexington Environs, Lillian (Unincorporated), Lincoln Park Environs, Lipan Environs, Little Elm Environs, Little River Academy Environs, Lockett (Unincorporated), Loraine Environs, Lorena Environs, Lott Environs, Lueders Environs, Madisonville Environs, Malone Environs, Manor Environs, Mansfield Environs, Margaret (Unincorporated), Marlin Environs, Marshall Creek Environs, Mart Environs, May (Unincorporated), McCaulley (Unincorporated), McGregor Environs, McKinney Environs, Medicine Mound (Unincorporated), Megargel Environs, Melissa Environs, Meridian Environs, Merkel'Environs, Mesquite Environs, Mexia Environs, Midway Environs, Miles Environs, Mobile City Environs, Montague (Unincorporated), Moody Environs, Moran Environs, Morgan Environs, Munday Environs, Murphy Environs, Nevada Environs, Newark Environs, Newcastle Environs, Nocona Environs, Nolanville Environs, Normangee Environs, North Richland Hills Environs, North Zulch (Unincorporated), Northlake Environs, Novice Environs, Oakwood Environs, O'Brien Environs, Odell (Unincorporated), Oglesby Environs, Oklaunion (Unincorporated), Olden (Unincorporated), Olney Environs, Osceola (Unincorporated), Ovalo (Unincorporated), Ovilla Environs, Pantego Environs, Paradise Environs, Parker Environs, Parsley Hill (Unincorporated), Pecanway (Unincorporated), Penelope Environs, Petrolia Environs, Pflugerville Environs, Pilot Point Environs, Plano Environs, Pleasant Valley Environs, Ponder Environs, Princeton Environs, Prosper Environs, Putnam Environs, Quanah Environs, Ranger Environs, Rayland (Unincorporated), Reagan (Unincorporated), Red Springs (Unincorporated),Rendon (Unincorporated), Reno Environs - Parker Co., Rhineland (Unincorporated), Rhome Environs, Richland Hills Environs, Richardson Environs, Riesel Environs, Rio Vista Environs, River Creek (Unincorporated), River Oaks Environs, Roanoke Environs, Robert Lee Environs, Robinson Environs, Roby Environs, Rochester Environs, Rockdale Environs, Rockwall Environs, Rogers Environs, Roscoe Environs, Rosebud Environs, Ross Environs, Rotan Environs, Round Rock Environs, Rowena (Unincorporated), Rowlett Environs, Royse City Environs, Rule Environs, Runaway Bay Environs, Sachse Environs, Saginaw Environs, Saint Jo Environs, San Angelo Environs, Sanctuary Environs, Sanger Environs, Samson park Village Environs, Santa Anna Environs, Santo (Unincorporated), Seagoville Environs, Seymour Environs, Shady Shores Environs, Snyder Environs, Somerville Environs, South TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE. LINE EXTENSION POLICY APPLICABLE TO: Entire System REVISION. DATE: EFFECTIVE DATE: 05/25/04 PAGE: 3 OF 5 Mountain Environs, Southlake Environs, Springtown Environs, Stamford Environs, Stephenville Environs, Strawn Environs, Streetman Environs, Sunnyvale Environs, Sunset Environs, Sweetwater Environs, Sylvester (Unincorporated), Talpa (Unincorporated), Taylor Environs, Teague Environs, Tehuacana Environs, Tell (Unincorporated), Temple Environs, The Colony Environs, Thorndale Environs, Thornton Environs, Thrall Environs, Throckmorton Environs, Tolbert (Unincorporated), Travis (Unincorporated), Trent Environs, Trophy Club Environs, Troy Environs, Truscott (Unincorporated), Tuscola Environs, Tye Environs, University Park Environs, Valera (Unincorporated), Valley Mills Environs, Valley View - Wichita Co. (Unincorporated), Vera (Unincorporated), Vernon Environs, Waco Environs, Weinert Environs, Wells Branch (Unincorporated), West Environs, Watauga Environs, Westlake Environs, Westover Hills, Westworth Village Environs Environs, Westminster Environs, White Settlement Environs, Whitney Environs, Wichita Falls Environs, Wilmer Environs, Windom Environs, Wingate (Unincorporated), Winters Environs, Woodway Environs, Wortham Environs, and Wylie Environs. Extension Rate The charge for extending mains beyond the limit established by Franchise for residential, and commercial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (9009): Application Applicable to all Residential and Commercial Customers located in the environ areas of: Alba Environs, Alma Environs, Angus Environs, Annona Environs, Athens Environs, Avalon (Unincorporated), Avery Environs, Bagwell (Unincorporated), Bandera Environs, Bardwell Environs, Barry Environs, Bells Environs, Ben Wheeler (Unincorporated), Bertram Environs, Blooming Grove Environs, Blossom Environs, Bogata Environs, Bonham Environs, Brashear (Unincorporated), Bristol (Unincorporated), Brookston (Unincorporated), Brownsboro Environs, Burnet Environs, Caddo Mills Environs, Campbell Environs, Canton Environs, Cayuga (Unincorporated), Celeste Environs, Center Point (Unincorporated), Chandler Environs, Clarksville Environs, Collinsville Environs, Comfort (Unincorporated), Commerce Environs, Como Environs, Cooper Environs, Corsicana Environs, Crandall Environs, Cumby Environs, Dawson Environs, Denison Environs, Deport Environs, Detroit Environs, Dodd City Environs, Ector Environs, Edom Environs, Elmo (Unincorporated), Emhouse Environs, Emory Environs, Enloe (Unincorporated), Ennis Environs, Eustace Environs, Evant Environs, Fairlie (Unincorporated), Fairy (Unincorporated), Ferris Environs, Forney Environs, Forreston (Unincorporated), Frankston Environs, Frost Environs, Fulbright (Unincorporated), Gainesville Environs, Garrett Environs, Goldthwaite Environs, Goodlow Environs, Grayson County Industrial Park (Unincorporated), Greenville Environs, Gunter Environs, Gustine Environs, Hamilton Environs, Hico Environs, Honey Grove Environs, Howe Environs, Iredell Environs, Italy Environs, Johntown (Unincorporated), Kaufman Environs, Kemp Environs, Kerens Environs, Kerrville Environs, Knollwood Environs, Ladonia Environs, Lampasas Environs, Leonard Environs, Lindsay Environs, Llano Environs, Lometa Environs, Lone Oak Environs, Mabank Environs, Malakoff Environs, Marble Falls Environs, Maypearl Environs, Midlothian Environs, Mildred Environs, Milford Environs, Muenster Environs, Murchison Environs, Myra (Unincorporated), New Chapel Hill Environs, Palestine Environs, Palmer Environs, Paris Environs, Pecan Gap Environs, Pecan Hill Environs, Petty (Unincorporated), Picton (Unincorporated), Point Environs, Pottsboro Environs, Pottsville (Unincorporated), Powell Environs, Poynor Environs, Quinlan Environs, Quitman Environs, Ravenna Environs, Red Oak Environs, Reese (Unincorporated), Reno Environs - Lamar Co., Retreat Environs, Rice Environs, Richland Environs, Roxton Environs, Sadler Environs, Saltillo Environs, San Saba Environs, Savoy Environs, Scurry (Unincorporated), Sherman Environs, Southmayd Environs, Star (Unincorporated), Star Harbor Environs, Sulphur Springs Environs, Sun Valley Environs, Terrell Environs, Tioga Environs, Toco Environs, Tom Bean Environs, Trenton Environs, Trinidad Environs, Trumbull (Unincorporated), Tyler Environs, Valley View Environs - Cooke Co., Van Alystyne Environs, Walnut Springs Environs, Waxahachie Environs, Whitehouse Environs, Whitesboro Environs, Whitewright Environs, Wolfe City Environs, and Yantis Environs. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE a EFFECTIVE DATE: LINE EXTENSION POLICY. Entire System 05/25/04 ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 4 OF 5 Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, and commercial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (4009-5): Application Applicable to all customers located within the city limits of: Bandera, Bertram, Burnet, Evant, Goldthwaite, Gustine, Hamilton, Hico, Iredell, Lampasas, Lometa, Marble Falls, San Saba, and Walnut Springs Extension Rate The charge for extending mains beyond the limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (304-5): Application Applicable to Residential and Commercial Customers located in the environ areas of: Bamburg (Unincorporated), Lakeport Environs, Longview Environs, Rolling Meadows (Unincorporated), and Sabine (Unincorporated) Extension Rate The charge for extending mains beyond the free limit established by franchise for residential and commercial shall be based on the actual cost per foot of the extension. Main Line Extension Rate (Item G): Application Applicable to all customers located within the city limits of Longview and Lakeport Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (9005*): Application Applicable to all customers located in the environs area of the city of Fredricksburg and customers located wn the city limits of: Alba, Alma, Angus, Annona, Aubrey, Avery, Bardwell, Barry, Blooming Grove, Blossom, Bogata, Bonham, Brownsboro, Caddo Mills, Campbell, Canton, Celeste, Chandler, Collinsville, Commerce, Como, Cooper, Corsicana, Crandall, Cumby, Dawson, Deport, Detroit, Dodd City, Ector, Edom, Emhouse, Emory, Eustace, Ferris, Forney, Frankston, Fredericksburg, Fredericksburg Environs, Frost, Garrett, Goodlow, Greenville, Gunter, Honey Grove, Italy, Kaufman, Kemp, Kerens, Kerrville, Knollwood, Ladonia, Leonard, Lindsay, Llano, Lone Oak, Mabank, Mildred, Milford, Muenster, Murchison, New Chapel Hill, Palmer, Paris, Pecan Gap, Point, Pottsboro, Powell, Quinlan, Quitman, Ravenna, Retreat, Rice, Richland, Roxton, Sadler, Savoy, Southmayd, Star Harbor, Sun Valley, Terrell, Tioga, Toco, Tom Bean, Trinidad, Tyler, Valley View - Cooke Co., Van Alstyne, Whitehouse, Whitesboro, Windom, Wolfe City, and Yantis Extension Rate The charge for extending mains beyond the limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (304-2): ,Application Applicable to all Residential and Commercial Customers located within the city limits of Kurten, Talty, and Wixon Valley. . Extension Rate The charge for extending mains beyond the free limit established by Atmos Energy Corp., Mid -Tex Division, or any free limit established by franchise, for bona fide residential customers shall be the lesser of: (a) the system -wide average cost of construction, including all overheads, for the prior fiscal year or (b) the adjusted actual cost as determined by applying the latest Handy -Whitman Index to the 1975 actual base cost of $2.94. A bona fide residential customer uses gas for heating and water heating, or the equivalent load thereof, at a minimum. Residential customers other than bona fide residential customers shall pay actual cost for main line extensions beyond the free limit. The Company shall file the calculation of such charge with the city as soon as sufficient data is available each fiscal year. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE T0a EFFECTIVE DATE: LINE EXTENSION POLICY Entire System 05/25/04 ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 5 OF 5 Main Line Extension Rate (Section 6.51: Application Applicable to all customers located within the city limits of : Benbrook, Burleson, Edgecliff Village, Everman, Haltom City, Haslet, Kennedale, Lake Worth, River Oaks, and Westworth Village Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (Section 2.81: Application Applicable to all customers located within the city limits of Fort Worth. Extension Rate Atmos Energy Corp., Mid -Tex Division shall not be required to extend mains in any public - right -of -way more than one hundred feet (100') to serve anyone customer. The charge for extending mains beyond one hundred feet (100) shall be calculated as the total length of the extension in feet minus one hundred feet (100') times the actual cost per foot of the extension. Main Line Extension Rate (Item G*1: Application Applicable to all customers located within the city limits of Grandview. Extension Rate The main line extension rates for residential customers will be based on the actual cost of each mainline extension. This is the same basis presently used for other classes of customers. Credit will still be made for the free limit established by the franchise. Main Line Extension Rate (Item F): Application Applicable to all customers located within the city limits of Azle, Blue Mound, Crowley, Forest Hill, Lakeside, North Richland Hills, Richland Hills, Saginaw, Sansom Park Village, Watauga, Westover Hills, and White Settlement. Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (Item B): Application Applicable to all customers located within the city limits of Venus. Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Main Line Extension Rate (Item E1: Application Applicable to all customers located within the city limits of Venus. Extension Rate The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate M — Miscellaneous Charges APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: 05/25/04 PAGE: 1 OF 3 RATE M -MISCELLANEOUS CHARGES: Application The service charges listed below are in addition to any other charges made under Company's Tariff for Gas Service and will be applied for the condition described. Other services not covered by these standard conditions will be charged on the basis of an estimate for the job or the Company's cost plus appropriate adders. Applicable Charges: 1 2 3 Connection Charge The following connection charges apply: Schedule Charoe business hours $ 65.00 after hours $ 97.00 For each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions: (a) For a builder who uses gas temporarily during construction or for display purposes. Whenever gas service has been temporarily interrupted because of System outage or service work done by Company; or (c) For any reason deemed necessary for Company operations. Field Read of Meter A read for change charge of $19.00 is made when it is necessary for the Company to read the meter at a currently served location because of a change in the billable party. Returned Check Charges A returned check handling charge of $20.00 is made for each check returned to Company for any reason. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE Rate M — Miscellaneous Charges Entire System 05/25/04 4 Charge for Installing and Maintaining an Excess Flow Valve ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 2 OF 3 A customer may request the installation of an excess flow valve provided that the service line will serve a single residence and operate continuously throughout the year at a pressure of not less than 10 psig. The customer will pay the actual cost incurred to install the excess flow valve. That cost will include the cost of the excess flow valve, the labor cost required to install the excess flow valve, and other associated costs. The estimated total cost to install an excess flow valve is $50.00. This cost is based on installing the excess flow valve at the same time a service line is installed or replaced. The excess flow valve will be installed on the service line upstream of the customer's meter and as near as practical to the main. A customer requiring maintenance, repair, or replacement of an excess flow valve will be required to pay the actual cost of locating and repairing or replacing the excess flow valve. The cost to perform this service will normally range from $200.00 to $2,000.00, depending on the amount of work required. This cost will be determined on an individual project basis. This tariff is being filed in accordance with the U.S. Department of Transportation rule requiring the installation of an excess flow valve, if requested by a customer, on new or replaced service lines that operate continuously throughout the year at a pressure of not less than 10 psig and that serve a single residence. The rule further states that the customer will bear all costs of installing and maintaining the excess flow valve. 5 Recovery of Connection Costs Associated with Certain Stand -By Gas Generators Commercial customers installing stand-bygas generators to provide service in the event of an interruption in electric service in facilities where gas service is not otherwise provided will reimburse the Company for the actual cost of acquiring and installing the regulator, service line, and meter required to provide gas service for the stand-by generators. Gas service provided for the stand-by generators will be billed at the applicable commercial rate. 6 I Charge for Temporary Discontinuance of Service -Residential Whenever service under this rate schedule has been temporarily disconnected at the request of the customer, a charge of $65.00 plus the appropriate Connection Charge will be made to reestablish such service for that customer at the same address. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE: Rate M — Miscellaneous Charges APPLICABLE TO: Entire System REVISION: DATE: EFFECTIVE DATE: 05/25/04 PAGE: 3 OF 3 7 I Charge for Temporary Discontinuance of Service - Non=Residential Whenever service under this rate schedule has been temporarily disconnected at the request of the customer, a charge of $107.00 plus the appropriate Connection Charge will be made to reestablish such service for that customer at the same address. 8 � Charge for Meter Testing The Company shall, upon request of a customer, make a test of the accuracy of the meter serving that customer. The Company shall inform the customer of the time and place of the test and permit the customer or his authorized representative to be present if the customer so desires. If no such test has been performed within the previous four (4) years for the same customer at the same location, the test shall be performed without charge. If such a test has been performed for the same customer at the same location within the previous four (4) years, the Company will charge a fee of $15,00, The customer must be properly informed of the result of any test on a meter that serves him. 9 � Charge for Service Calls A Service Call Charge is made for responding to a service call that is determined to be a customer related problem rather than a Company or Company facilities problem. $26.00 business hours $40.00 after hours 10 � Tampering Charge No Company Meters, equipment, or other property, whether on Customer's premises or elsewhere, are to be tampered with or interfered with for any reason. A Tampering Charge is made for unauthorized reconnection or other tampering with Company metering facilities, or a theft of gas service by a person on the customer's premises or evidence by whomsoever at customer's premises. An additional cost for the cost of repairs and/or replacement of damaged facilities and the installation of protective facilities or relocation of meter are made at cost plus appropriate charges as detailed in Company's Service Rules and Regulations. $125.00 TARIFF FOR GAS SERVICE RIDER: APPLICABLE TO: EFFECTIVE DATE: Rider RA - Retention Adjustment Entire System 05/25/04 RIDER RA -RETENTION ADJUSTMENT Application ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 1 OF 1 The Retention Adjustment, as determined from time to time, is applicable to Customers taking service under Rate CGS, Rate PT, and Rate T. Monthly Rate Retention percentage for Rate CGS and Rate PT is 1.00% (applied to gas received into Atmos Pipeline - Texas System.) Retention percentage for Rate T is 3.56% (applied to gas received into Atmos Energy Corp., Mid -Tex Division System). TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RIDER: APPLICABLE TO: EFFECTIVE DATE: Rider TAX = Tax Adjustment Entire System 05/25/04 RIDER TAX -TAX ADJUSTMENT Application REVISION: DATE: PAGE: 1 OF 1 Applicable to Customers taking service under Rate R, Rate C, Rate I, Rate T, Rate CGS, and Rate PT, except for exempt State Agency Customers, to the extent of state gross receipts taxes only. Each monthly bill shall be adjusted for state gross receipts taxes imposed by Sections 182-021 - 182-025 of the Texas Tax Code. Each monthly bill shall also be adjusted by an amount equivalent to the amount of all applicable taxes and any other governmental impositions, rentals, fees, or charges (except state, county, city, and special district ad valorem taxes and taxes on net income) levied, assessed, or imposed upon or allocated to Company with respect to the Gas Service provided to Customer by Company, and any associated facilities involved in the performance of such Gas Service. Each monthly bill shall also be adjusted by an amount equivalent to the proportionate part of any increase or decrease of any tax and any other governmental imposition, rental, fee, or charge (except state, county, city, and special district ad valorem taxes and taxes on net income) levied, assessed, or imposed subsequent to the effective date of this tariff, upon or allocated to Company's operations, by any new or amended law, ordinance, or contract. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate WNA — Weather Normalization Adjustment APPLICABLE T0: I Entire System (except Environs areas I REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 111/01/200a I PAGE: 1 OF 2 RIDER WNA - Weather Normalization Adjustment Provisions for Adjustment The base rate per Mcf (1,000,000 Btu) for gas service set forth in any Rate Schedules utilized by the cities of the Mid -Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential, and commercial bills based on meters read during the revenue months of November through April. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one -hundredth cent per Mcf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri Where (BLi + (HSFi x ADD) ) = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Mcf Ri = base rate of temperature sensitive sales for the ith schedule or classification approved by the entity exercising original jurisdiction. HSFi = heat sensitive factor for the ith schedule or classification calculated as the slope of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. MD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification calculated as the y- intercept of the linear regression of average sales per bill (Mcf) and actual heating degree days by month for the test year by schedule or classification and weather station as part of the RRM filing. The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA, = WNAF, x q,, TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate WNA — Weather Normalization Adjustment APPLICABLE T0: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 11//01/2008 PAGE: 2 OF 2 Where q;i is the relevant sales quantity for the jth customer in ith rate schedule. Filings with Entities Exercisina Oriainal Jurisdiction As part of its annual RRM filing the Company will file (a) a copy of each computation of the Weather Normalization Adjustment Factor, (b) a schedule showing the effective date of each such Weather Normalization Adjustment, (c) a schedule showing the factors of values used in calculating such Weather Normalization Adjustment and (d) a random sample and audit of thirty (30) actual customer bills, with customer information deleted, for each rate schedule or classification to which the WNA was applied in the preceding 12 month period. To the extent that source data is needed to audit the WNA application, such data will be provided by the Company as part of the annual RRM filing. If the RRM is discontinued, as provided in the Rider RRM tariff, the information required herein to be filed with the entities exercising original jurisdiction shall be filed on March 1 of each year. Base Use/Heat Sensitivity fHSF) Factors Residential Base use HSF Base use \Naathar .qtatinn Mc:f Mcf/HDD Mcf Commercial HSF Mcf/HDD Abilene 1.14 .0131 8.11 .0631 Austin 1.31 .0136 18.05 .0669 Dallas 1.57 .0185 18.08 .0925 Waco 1.20 .0138 10.97 .0606 Wichita 1.27 .0147 11.58 .0581 Falls Sample WNAF^Calculation: 1533 per Mcf = 1.2267 x Where = Residential Single Block Rate Schedule Ri = 1.2267 per MCF (Rate R -Final Order GUD No. 9670) HSFi = :0131 (Residential -Abilene Area) NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area — 9/15/06 —10/14/06) ADD = 17 HDD (Actual HDD for Abilene Area — 9/15/06—10/14/06) Bli = 1.14 Mcf (Residential -Abilene Area) Sample WNAF^Calculation: 1533 per Mcf = 1.2267 x Where = Residential Single Block Rate Schedule Ri = 1.2267 per MCF (Rate R -Final Order GUD No. 9670) HSFi = :0131 (Residential -Abilene Area) NDD = 30 HDD (Simple ten-year average of Actual HDD for Abilene Area — 9/15/06 —10/14/06) ADD = 17 HDD (Actual HDD for Abilene Area — 9/15/06—10/14/06) Bli = 1.14 Mcf (Residential -Abilene Area) TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: I Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 04/04/2008 1 PAGE: 1 OF 9 RIDER RRM -RATE REVIEW MECHANISM Purpose: This mechanism is designed to provide annual earnings transparency. All rate calculations under this tariff shall be made on a system wide basis. If, through the implementation of the provisions of this mechanism, it is determined that rates should be decreased or increased, then rates will be adjusted accordingly in the manner set forth herein. The rate adjustments implemented under this mechanism will reflect annual changes in the Company's cost of service and rate base. This adjustment will be authorized for an Initial Implementation Period. With the conclusion of the final rate adjustment, if any, for the Initial Implementation Period, each entity having original jurisdiction may revoke, amend, or approve Subsequent Implementation Period(s) for, the mechanism. Definitions a) The Annual Evaluation Date shall be the date the Company will make its annual filing under this mechanism. The Annual Evaluation Date shall be no later than March 1, of each year. This filing shall be effective in electronic form where practicable. The initial filing shall be made March 31, 2008. b) Audited Financial Data shall mean the Company's books and records related to the Company's Mid - Tex operating area and shared services operations. Audited Financial Data shall not require the schedules and information provided under this tariff to undergo a separate financial audit by an outside auditing firm similar to the Company's annual financial audit. c) The Evaluation Period is defined as the twelve month period ending December 31, of each calendar year. The initial Evaluation Period shall be calendar year 2007. d) The Rate Effective Period is defined as the earlier of the twelve month period for which rates determined under this mechanism will be in effect or subsequent rates are implemented. e) Per Connection Basis is defined as the existing average number of Mid -Tex active meters to customers during the Evaluation Period. f) Initial Implementation Period is defined as the three (3) year period commencing with the Company's filing under this mechanism for the calendar year 2007, effective October 1, 2008, and shall conclude with the implementation of rate adjustments, if any, for the third Rate Effective Period. g) Subsequent Implementation Period is defined as any three (3) year period after the conclusion of the Initial Implementation Period. h) Final Order is defined as the most recent order establishing the Company's latest effective rates for the area in which the mechanism is implemented, and shall include municipal rate ordinances and resolutions. Rate Review Mechanism The Company shall file with each regulatory authority having original jurisdiction over the Company's rates the schedules specified below for the Evaluation Period, with the filing to be made by the Annual Evaluation Date following the end of the Evaluation Period. The schedules, which will be based upon the Companys Audited Financial Data, as adjusted, and provided in the same format as Atmos' rate filing with municipalities on September 20, 2007, will include the following: f TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION. DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 2 OF 9 a) Company's 13 month average actual gross plant in service, accumulated depreciation, accumulated deferred income taxes, inventory, working capital, and other rate base components for the Evaluation Period. A 13 month average will be used for these items for the true up calculation, Evaluation Period ending balances for these items will be used for the calculation of rates for the Rate Effective Period. The ratemaking treatments, principles, findings and adjustments included in the Final Order will apply. Regulatory adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash working capital will be calculated using the lead/lag days approved in the Final Order. Accumulated deferred income taxes (ADIT) will be calculated using the methodology used in the Final Order. The RRM Schedules & Information section of this tariff identifies those ADIT components to be included in the calculation of rate base for both the Evaluation Period and Rate Effective Period calculations. b) The Company's depreciation expense, operating and maintenance expense, and taxes other than income taxes booked in the period will be used for the true -up calculation purposes. Depreciation rates booked in the period will be those approved in the Final Order, or the rate most recently approved. All calculation methodologies will be those approved in the Final Order except where noted or included in this tariff, or in the most recent order addressing the methodology. In addition, the Company shall exclude from operating and maintenance expense the discretionary costs to be disallowed from Rider RRM filings listed in the RRM Schedules and Information section of this tariff. c) Return on Equity (ROE) shall be maintained at 9.6%. d) Cost of debt will reflect actual cost for the Evaluation Period. A 13 month average cost of debt and capital structure will be used for the true up calculation; Evaluation Period ending balances for cost of debt and capital structure will be used for the calculation of rates for the Rate Effective Period. Capital structure will be the actual Evaluation Period ratio of long-term debt and equity, with percentage equity not to exceed the percentage established in the Final Order in G.U.D. No. 9670 (48.1%equity), based on the calculation methodology outcomes used above. e) All applicable accounting adjustments along with all supporting work papers. Such adjustments may include: 1) Pro -forma adjustments to update and annualize costs and revenue billing determinants for the Rate Effective Period. 2) Pro -forma or other adjustments required to properly account for atypical, unusual, or nonrecurring events recorded during the Evaluation Period. f) Shared Services allocation factors shall be recalculated each year based on the latest component factors used during the Evaluation Period, but the methodology used will be that approved in the Final Order. Calculation of Rate Adjustment CA) The Company shall provide additional schedules indicating the following revenue deficiency/sufficiency calculations using the methodology accepted in the Final Order, a 13 month average will be used for the specified items for the true up calculation, Evaluation Period ending balances will be used for the calculation of rates for the Rate Effective Period. These schedules shall identify the rate adjustments necessary for both a true -up of revenue for the Evaluation Period and the setting of prospective rates for the Rate Effective Period. The net result of these rate adjustments shall be reflected in the proposed new rates to be established for the Rate TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 3 OF 9 Effective Period. In calculating the required rate adjustments, such adjustments will be made to to the customer charge and usage charge based upon actual revenue generated, as adjusted under the Company's approved Weather Normalization Adjustment (WNA) Rider. Provided, however, that neither the Residential nor the Commercial customer charges may increase more than 20% per year. b) If Company's earnings during the Evaluation Period exceed 9.6% return on common equity, the Company shall calculate a decrease to rates to reduce the revenue required to achieve a return on equity of 9.6% for the Evaluation Period. If Company's earnings during the Evaluation Period are below 9.6% return on common equity, the Company shall calculate an increase in rates to collect the additional revenue required to increase its return on equity for the Evaluation Period to 9.6%. In order to avoid double -counting of true -up revenues, any true -up revenue booked during the Evaluation Period that is related to prior periods will be removed in determining both the prospective rates for the Rate Effective Period and the true -up increase or decrease related to the current Evaluation Period, The RRM Schedule & Information section of this tariff provides an example calculation. After the prospective rates for the Rate Effective Period are calculated, the true -up element shall be added to or deducted from those rates in order to determine the rates that shall thereafter be recovered. c) The Company may also adjust rates for the Rate Effective Period to include recovery of any known and measurable changes to operating and maintenance costs including, but not limited to, all payroll and compensation expense, all benefit expense, all pension expense, insurance costs, materials and supplies, bad debt costs, all medical expense, transportation and building and lease costs for the Rate Effective Period. Provided, however, that adjustments may only be made for costs that are reasonable and necessary. Additionally, utility plant and rate base for the Rate Effective Period will be established by using the Evaluation Period ending balances, including associated changes in depreciation and amortization expense and taxes. In"calculating the Company's known and measurable changes for prospective RRM adjustment purposes, the following limitations will apply, on a Per Connection Basis. 1. Operating and Maintenance expenses per connection for the Rate Effective Period cannot increase more than 5% per year without specific identification and justification. Any proposed adjustment above 5% per year, is subject to the provisions of the Evaluation Procedures of this tariff. Such procedures provide that the regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work collaboratively to seek agreement on the proposed adjustments to the Company's schedules and proposed rates. Justification for such expenditures over the cap shall include an event or combination of events beyond the control of the Company. The beginning adjusted Operation and Maintenance expense per connection for the 2007 RRM Evaluation Period will be limited to not exceed $151 million divided by the connections for the period. The increase in adjusted Operation and Maintenance expenses per connection for the 2008 Rate Effective Period and subsequent Rate Effective periods cannot exceed 5% per year, without specific identification and justification. The RRM Schedule & Information section of this tariff provides an example calculation of the *5% limit. 2. Net plant investment per connection for the Rate Effective Period cannot increase more than 5% per year without specific identification and justification. Any proposed adjustment above 5% per year, is subject to the provisions of the Evaluation Procedures of this tariff. Such procedures provide that the regulatory authority will review the proposed adjustment and that the Company and regulatory authority will work collaboratively seek agreement on the proposed adjustments to the Company's TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE: Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE. EFFECTIVE DATE: 104/04/2008 I PAGE: 4 OF 9 schedules and proposed rates. However, in performing a cap test to verify compliance, Company shall exclude any changes in net plant investment associated with federal, state, or local mandates related to safety, compliance, or road moves. The 2007 true up calculation shall be made using the net plant investment of $1,243,607,206, The initial 2008 prospective rate will be set using net plant limited to not exceed [$1,243,607,206 divided by average active meters for the 12 months ended June 30 2007] times 1.025 times the average active meters for calendar year 2007. Subsequent filing calculations of net plant investment will be made using the same method used in the Company's September 20, 2007 Statement of Intent with the following exceptions: 1) A 13 month average will be used for net plant in the true up calculation and 2) Evaluation Period ending balances will be used for net plant in the calculation of rates for the Rate Effective Period. The rate increase limitations set forth in this tariff shall not preclude the Company from recovering any excluded net plant costs during a subsequent Evaluation Period in which the 5% limitation for net plant investment is not reached or in a subsequent Statement of Intent case. To the extent that the Company seeks to recover any excluded net plant costs during a subsequent Evaluation Period in which the 5% limitation for net plant investment is not reached or in a subsequent Statement of Intent case, the Company shall identify these costs as a specific line item in the schedule accompanying the RRM rate adjustment filing. The regulatory authority may disallow any net plant investment that is not shown to be prudently incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions of this tariff shall constitute a finding that such net plant investment was prudently incurred. Such finding of prudence shall not be subject to further review in a subsequent Evaluation Period or Statement of Intent filing. d) The Company also shall provide a schedule demonstrating the "proof of revenues" relied upon to calculate the proposed rate for the Rate Effective Period. The proposed rates shall conform as closely as is practicable to the revenue allocation principles approved in the Final Order. Attestation A sworn statement shall be filed by the Company's Chief Officer in Charge of Mid -Tex Operations affirming that the filed schedules are in compliance with the provisions of this mechanism and are true and correct to the best of his/her knowledge, information and belief. No testimony shall be filed. Evaluation Procedures The regulatory authority having original jurisdiction over the Company's rates shall have no less than ninety (90) days to review the Company's filed schedules and work papers. The Company will be prepared to provide all supplemental information as may be requested to ensure adequate review by the relevant regulatory authority. The Company shall not unilaterally impose any limits upon the provision of supplemental information and such information shall be provided within ten (10) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the schedules into compliance with the above provisions. During and following the ninety (90) day review period and a thirty (30) day response period, the Company and the regulatory authority will work collaboratively and seek agreement on, the proposed adjustments to the Company s schedule and proposed rates. If agreement has been reached by the Company and the regulatory authority, the regulatory authority shall authorize an increase or decrease to TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 5 OF 9 the Company's rates so as to achieve the revenue levels indicated for the Rate Effective Period. If, at the end of the thirty (30) day response period, the Company and the regulatory authority have not reached agreement on the proposed adjustments, the Company shall have the right to appeal the regulatory authority's action or inaction to the Railroad Commission of Texas. Upon the filing of any appeal, the Company shall have the right to implement the proposed RRM rate adjustment, subject to refund. If approved by the entity exercising original jurisdiction, the rates established pursuant to the Rate Review Mechanism for the first Rate Effective Period shall be effective on October 1, 2008. Thereafter, rates established pursuant to the Rate Review Mechanism for subsequent Rate Effective Periods, if approved as provided herein, shall be effective on July 15 of each year. Reconsideration and Appeal Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under Sections 102.001(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007). Notice Notice of the annual Rate Review Mechanism filing shall be provided pursuant to Section 104.103, TEx. UTIL. CODE ANN, no later than forty-five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following information: a) a description of the proposed revision of rates and schedules; b) the effect the proposed revision of rates is expected to have on the rates applicable to each customer class and on an average bill for each affected customer; c) the service area or areas in which the proposed rate adjustment would apply; d) the date the proposed rate adjustment was filed with the regulatory authority; and e) the Company's address, telephone number and website where information concerning the proposed rate adjustment may be obtained. RRM Schedules and Information Accumulated Deferred Income Tax ("ADIT") Items To Be Recognized in Rate Base The following list identifies those ADIT components to be included in the calculation of rate base for both the Evaluation Period and Rate Effective Period calculations: Mid -Tex: Gas Plant in Service Insurance Accruals Benefit Accruals Deferred Expense Projects Allowance for Doubtful Accounts Customer Advances UNICAP Section 263A Costs (which shall be removed from Atmos Mid -Tex when these costs are transferred to Atmos Pipeline Texas) Regulatory Asset - Mid Tex TARIFF FOR GAS SERVICE RATE SCHEDULE: Rate RRM — Rate Review Mechanism ATMOS ENERGY CORP., MID-TEX DIVISION APPLICABLE TO: Entire System (except Environs areas REVISION: and the City of Dallas) DATE: EFFECTIVE DATE: 1 04/04/2008 Regulatory Liability -Mid-Tex Other Plant PAGE: 6 OF 9 Accumulated Deferred Income Tax ("ADIT) Items To Be Recognized in Rate Base (continued): SSU -Customer Support: Gas Plant in Service SSU -General Office: Gas Plant in Service Insurance Accruals Benefits Accruals Deferred Expense Projects Prepaid Expenses Regulatory Liability - Atmos 109 FAS 115 Adjustment Treasury Lock Adjustment Revenue Agent Report Carryforward Adjustments 1990-1985 Tax Net Operating Loss Credit Carryforwards State Bonus Depreciation R & D Credit Valuation Allowance Other Plant Discretionary Costs to Be Disallowed from Rider RRM filinas The following types of employee reimbursed expenses and directly incurred costs are to be removed from all expense and rate base amounts included within Rider RRM filings for the Evaluation Period and for the Rate Effective Period: Amounts incurred for travel, meals or entertainment of employee spouses. Amounts for air travel that exceed published commercial coach air fares. Amounts incurred for hotel rooms exceeding $250 per night inclusive of taxes and fees assessed on such rooms. Amounts for alcoholic beverages. Amounts paid for admission to entertainment, sports, art or cultural events, and all event sponsorship costs. Amounts for social club dues or fees. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE. Rate FIRM - Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 7 OF 9 Example Calculation A -Revenue for RRM True Up Portion of Rate *` FOR ILLUSTRATION PURPOSES ONLY. AMOUNTS ARE HYPOTHETICAL, AND DO NOT CORRESPOND WITH OTHER EXAMPLE SCHEDULES"" Per Books Revenue, excluding True -Up Revenue from prior Evaluation Periods Per Books True -Up Revenue based on 2007 Evaluation period [1] Per Books True -Up Revenue based on 2008 Evaluation period [1 ] Per Books True -Up Revenue based on 2009 Evaluation period [1 ] Total Per -Books Revenue Add / (Subtract): Revenue from Riders GCR, FF, &TAX Surcharges for Rate Case Cost Recovery True -Up Revenue for 2007 Evaluation Period [1] True -Up Revenue for 2008 Evaluation Period [1] Remove out -of -period and unusual items Realized Revenue for True -Up Calculation Revenue Requirement at 9.6% ROE [2] True -up Increase (Decrease), subject to Revenue - Related Tax Gross -up Calendar Calendar Calendar Calendar Calendar 2007 2008 2009 2010 2011 $150,000 $156,000 $157,700 $158,200 $158,700 (364) (546) $150,000 $156,800 $158,536 (110,000) (111,000) (112,000) (200) (200) (200) (800) (11200) 364 39,800 44,800 45,500 41,800 43,890 46,085 234 351 $157,888 $159,051 [i ] For illustration purposes, example assumes 40% of the total calculated true -up is collected in the following calendar year. Each true -up is subject to a proof of collection or refund after the collection/refund period, and any residual amount will be refunded or collected in the subsequent period. [2] Since realized revenue for the true -up calculation excludes Riders GCR, FF, and TAX, as well as surcharges for rate case cost recovery, the revenue requirement for purposes of the true -up calculation also excludes all corresponding expenses for the Evaluation Period. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION. DATE. EFFECTIVE DATE. 04/04/2008 PAGE: 8 OF 9 Example Calculation B -Revenue for RRM Prospective Portion of Rate "* FOR ILLUSTRATION PURPOSES ONLY. AMOUNTS ARE HYPOTHETICAL, AND DO NOT CORRESPOND WITH OTHER EXAMPLE SCHEDULES** Rate Effective Period Revenue Price -Out at Current Rates [1] Remove True -Up Portion of Revenue [2) Revenue at Current Rates for Rate Effective Period Deficiency Calculation Revenue Requirement for Rate Effective Period Rate Effective Period Revenue Increase/ (Decrease) before True -Up, subject to Revenue Tax Gross -Up [3] Oct 2008 -Sept July 15, 2009 - July 15, 2010 - 2009 July 14. 2010 July 14, 2011 $ 60,000 $ 65,000 $ 68,000 (2,500) 1,100 60,000 62,500 69,100 65,000 68,250 71,663 $ 5,000 $ 5,750 $ 2,563 [1] To be calculated using pro -forma annualized billing determinants, as provided in this tariff, priced out at the current rates at the time of the deficiency calculation. [2] To be calculated using pro -forma annualized billing determinants, as provided for in this tariff, priced out at the portion of current rates at the time of the deficiency calculation intended to true up prior Evaluation Period(s). [3] This represents the prospective deficiency portion of the RRM adjustment. The true -up adjustment, demonstrated in Example Calculation A, will be combined with this adjustment to determine the total adjustment for the Rate Effective Period. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID=TEX DIVISION RATE SCHEDULE. Rate RRM — Rate Review Mechanism APPLICABLE TO: Entire System (except Environs areas and the City of Dallas) REVISION: DATE: EFFECTIVE DATE: 04/04/2008 PAGE: 9 OF 9 Example Calculation C -Operation &Maintenance Expense Cap Test **All Amounts are Hypothetical, and do not correspond with other example calculations'`* Evaluation Period (Calendar Year) 2007 2008 2009 Benchmark O&M per Connection (increased 5%annually) $ 97.23 102.99 107.19 Gas Service Connections [1] 11553,000 11560,000 11567,000 Maximum O&M Allowed $ 151,000,000 $ 159,260,400 $ 167,966,730 [1] For illustration purposes only, Gas Service Connections are estimated for 2007 and are assumed to increase 7,000 connections per year. Therefore, 'Maximum O&M Allowed' is estimated for 2008 and 2009. Actual Gas Service Connections for 2007 will be used to calculate the 2007 O&M per Connection. For each subsequent Evaluation Period, the prior period O&M per Connection will be increased by 5%, and then multiplied by the actual Gas Service Connections for the same period to derive the 'Maximum O&M Allowed'. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE Rider CEE — Conservation & Energy Efficiency Entire System (except Environs areas and the City of Dallas) 04/04/2008 RIDER CEE -Conservation & Eneray Efficiency Purpose REVISION: DATE: PAGE: 1 OF 1 Atmos Energy Mid -Tex is proposing to institute a complete Conservation &Energy Efficiency program which will offer assistance to qualified customer segments in reducing energy consumption and lowering energy utility bills. The proposal is one where Atmos Energy shareholders will fund a percentage of the allowable expenses incurred annually, with a customer rate component providing the remainder of the funding. Following is a high-level, concept summary of the proposal. Atmos Energy Mid -Tex Division proposes to work with the communities it serves to develop the details of a new tariff and programs addressing conservation and energy efficiency. ynopsis: Voucher system to provide free energy savings materials and supplies to qualifying customers of Atmos Mid -Tex, Qualified Customers will receive up to two hundred dollars ($200.00) worth of caulking, weather-stripping, sheathing, sealing, water heater blankets, and like materials, other energy saving devices such as clock -thermostats, set -back devices ("covered items") from approved suppliers / retailers. Company will undertake efforts to enlist support from community groups, including its own Employee Action Program, to assist customers with installation. If it is determined that professional installation capabilities are necessary, the parties will agree on labor assistance amounts. Eliaibility Low Income —Low-income rate -payers that qualify for heating bill assistance through LIHEAP agencies and all agencies that distribute Atmos "Share the Warmth" funds. Agencies that allocate assistance funds denote customer as Low Income, a status that lasts for one year. Senior Citizen — Primary account holder can request eligibility through ATM call center or web -site. Customer provides primary SSN which is verified through Social Security Administration. And account holder that is or turns 65 years old in that year becomes eligible. Funding Initial program funding will be at two million dollars ($2,000,000). Atmos Energy shareholders will contribute one million dollars ($1,000,000.00) to this initiative annually with ratepayers providing one million dollars ($1,000,000.00) per year. It is proposed that the program operate on an October 1 through September 30 year, with benefits being capped at the two million dollar level for the initial program period. Administration: A third -party administrator will coordinate qualification of customers, voucher distribution, subsequent verification and reimbursement of eligible expenditures and general program administration. Program administration expenses will be funded from the annual approved budget. Program audits will be conducted and the results provided to any interested party within 120 days of the end of each program year 4o determine effectiveness. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE T0: EFFECTIVE DATE: Service Rules and Regulations Entire System O6/21 /05 V. SERVICE RULES AND REGULATIONS: ATMOS ENERGY CORP., MID-TEX DIVISION REVISION: DATE: PAGE: 1 OF 1 TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION '' \ t Distribution n I - IIIII D 1 OF 1 For gas utility service to residential and small commercial customers, the following minimum service standards shall be applicable in unincorporated areas served by the Company. For the purposes of this rate schedule, the Company is referred to as the "utility." In addition, these minimum service standards shall be applicable to residential and small commercial customers within incorporated areas served by the utility, but only to the extent that said minimum service standards do not conflict with, supersede, or replace a provision of quality of service standards lawfully established currently or in the future within a particular municipality for a gas distribution utility. The utility shall file service rules incorporating said minimum service standards with the Railroad Commission and with the municipalities in the manner prescribed by law. (1) Continuity of service. (A) Service interruptions. (i) The utility shall make all reasonable efforts to prevent interruptions of service. When interruptions occur, the utility shall reestablish service within the shortest possible time consistent with prudent operating principles so that the smallest number of customers are affected. (ii) The utility shall make reasonable provisions to meet emergencies resulting from failure of service, and the utility shall issue instructions to its employees covering procedures to be followed in the event of an emergency in order to prevent or mitigate interruption or impairment of service. (iii) In the event of national emergency or local disaster resulting in disruption of normal service, the utility may, in the public interest, interrupt service to other customers to provide necessary service to civil defense or other emergency service agencies on a temporary basis until normal service to these agencies can be restored. (B) Record of interruption. Except for momentary interruptions which do not cause a major disruption of service, the utility shall keep a complete record of all interruptions, both emergency and scheduled. This record shall show the cause of interruptions, date, time duration, location, approximate number of customers affected, and, in cases of emergency interruptions, the remedy and steps taken to prevent recurrence. (C) Report to commission. The commission shall be notified in writing within 48 hours of interruptions in service affecting the entire system or any major division thereof lasting more than four hours. The notice shall also state the cause of such interruptions. If any service interruption is reported to the commission otherwise for example, as a curtailment report or safety report), such other report is sufficient to comply with the terms of this paragraph. (2) Customer relations. (A) Information to customers. The utility shall: (i) maintain a current set of maps showing the physical locations of its facilities. All distribution facilities shall be labeled to indicate the size or any pertinent information which will accurately describe the utility's facilities. These maps, or such other maps as may be required by the regulatory authority, shall be kept by the utility in a central location and will be available for inspection by the regulatory authority during normal working hours. Each business office or service center shall have available up-to-date maps, plans, or records of its immediate area, with such other information as may be necessary to enable the utility to advise applicants and others entitled to the information as to the facilities available for serving that locality; (ii) assist the customer or applicant in selecting the most economical rate schedule; (iii) in compliance with applicable law or regulations, notify customers affected by a change in rates or schedule or classification; TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION RATE SCHEDULEG Service Rules and Regulations- — " i Dis ribution System DATE: 1XV4 0- '11 -P--O - -0 -- (iv) post a notice on the Company's website informing the public that copies of the rate schedules and rules relating to the service of the utility as filed with the commission are available for inspection$ (v) upon request inform its customers as to the method of reading meters; (vi) provide to new customers, at the time service is initiated or as an insert in the first billing, a pamphlet or information packet containing the following information. This information shall be provided in English and Spanish as necessary to adequately inform the customers; provided, however, the regulatory authority upon application and a showing of good cause may exempt the utility from the requirement that the information be provided in Spanish: (I) the customer's right to information concerning rates and services and the customer's right to inspect or obtain at reproduction cost a copy of the applicable tariffs and service rules; (II) the customer's right to have his or her meter checked without charge under paragraph (7) of this section, if applicable; (III) the time allowed to pay outstanding bills; (IV) grounds for termination of service; (V) the steps the utility must take before terminating service; (VI) how the customer can resolve billing disputes with the utility and how disputes and health emergencies may affect termination of service; (VII) information on alternative payment plans offered by the utility; (VIII) the steps necessary to have service reconnected after involuntary termination; (IX) the appropriate regulatory authority with whom to register a complaint and how to contact such authority; (X) a toll -free telephone number where information may be obtained concerning the hours and addresses of locations where bills may be paid; and (XI) the customer's right to be instructed by the utility how to read his or her meter; (vii) at least once each calendar year, notify customers that information is available upon request, at no charge to the customer, concerning the items listed in clause (vi)(I) - (XI) of this subparagraph. This notice mI y be accomplished by use of a billing insert or a printed statement upon the bill itself. (B) Customer complaints. Upon complaint to the utility by residential or small commercial customers either at its office, by letter, or by telephone, the utility shall promptly make a suitable investigation and advise the complainant of the results thereof. The utility shall keep a record of all complaints which shall show the name and address of the complainant, the date and nature of the complaint, and the adjustment or disposition thereof for a period of one year subsequent to the final disposition of the complaint. (C) Utility response.. Upon receipt of a complaint, either by letter or by telephone, from the regulatory authority on behalf of a customer, the utility shall make a suitable investigation and advise the regulatory authority and complainant of the results thereof. An initial response acknowledging the receipt of the complaint must be made by the next working day. The utility must make a final and complete response within 15 days from the date of receipt by Company of the complaint, unless additional time is granted within the 15-day period. The commission encourages all customer complaints to be made in writing to assist the regulatory authority in maintaining records of the quality of service of each utility; however, telephone communications will be acceptable. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION SCHEDUL -Service Rules and Regulations -- ��Distribution System REVISIONG (D) Deferred payment plan. The utility is encouraged to offer a deferred payment plan for delinquent residential accounts. If such a plan is offered, it shall conform to the following guidelines: (i) Every deferred payment plan entered into due to the customer's inability to pay the outstanding bill in full must provide that service will not be discontinued if the customer pays current bills and a reasonable amount of the outstanding bill and agrees to pay the balance in reasonable installments until the bill is paid. (ii) For purposes of determining reasonableness under these rules, the following shall be considered: size of delinquent account; customer's ability to pay; customer's payment history; time that the debt has been outstanding; reasons why debt has been outstanding; and other relevant factors concerning the circumstances of the customer. (iii) A deferred payment plan, if reduced to writing, offered by a utility shall state, immediately preceding the space provided for the customer's signature and in bold -face print at least two sizes larger than any other used, that: "If you are not satisfied with this agreement, do not sign. If you are satisfied with this agreement, you give up your right to dispute the amount due under the agreement except for the utility's failure or refusal to comply with the terms of this agreement." (iv) A deferred payment plan may include aone-time 5.0% penalty for late payment on the original amount of the outstanding bill with no prompt payment discount allowed except in cases where the outstanding bill is unusually high as a result of the utility's error (such as an inaccurately estimated bill or an incorrectly read meter). A deferred payment plan shall not include a finance charge. (v) If a customer for utility service has not fulfilled terms of a deferred payment agreement or refuses to sign the same if it is reduced to writing, the utility shall have the right to disconnect pursuant to disconnection rules herein and, under such circumstances, it shall not be required to offer a subsequent negotiation of a deferred payment agreement prior to disconnection. (vi) Any utility which institutes a deferred payment plan shall not refuse a customer participation in such a program on the basis of race, color, creed, sex, marital status, age, or any other form of discrimination prohibited by law. (E) Delayed payment of bills by elderly persons. (i) Applicability. This subparagraph applies only to: (I) a utility that assesses late payment charges on residential customers and that suspends service before the 26t11 day after the date of the bill for which collection action is taken; (II) utility bills issued on or after August 30, 1993; and (III) an elderly person, as defined in clause (ii) of this subparagraph, who is a residential custbmer and who occupies the entire premises for which a delay is requested. (ii) Definitions. (I) Elderly person --A person who is 60 years of age or older. (II) Utility --A gas utility or municipally owned utility, as defined in Texas Utilities Code, §10lw003(7)i 101.003(8), and 121.001 - 121.006. An elderly person may request that the utility implement the delay for either the most recent utility bill or for the most recent utility bill and each subsequent utility bill. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID-TEX DIVISION ATE SCHEDULEO Service Rules and Regulations -il' WA 9 W so ISE11 I1 Distribution System REVISION@ DATEa 0�II■■ 1� I — - (iv) On request of an elderly person, a utility shall delay without penalty the payment date of a bill for providing utility services to that person until the 25th day after the date on which the bill is issued. (v) The utility may require the requesting person to present reasonable proof that the person is 60 years of age or older. (vi) Every utility shall notify its customers of this delayed payment option no less often than yearly. A utility may include this notice with other information provided pursuant to subparagraph (A) of this paragraph. (3) Refusal of service. (A) Compliance by applicant. Any utility may decline to serve an applicant for whom service is available from previously installed facilities until such applicant has complied with the state and municipal regulations and approved rules and regulations of the utility on file with the commission governing the service applied for or for the following reasons. (i) Applicant's facilities inadequate. If the applicant's installation or equipment is known to be hazardous or of such character that satisfactory service cannot be given. (ii) For indebtedness. If the applicant is indebted to any utility for the same kind of service as that applied for; provided, however, that in the event the indebtedness of the applicant for service is in dispute, the applicant shall be served upon complying with the applicable deposit requirement. (iii) Refusal to make deposit. For refusal to make a deposit if applicant is required to make a deposit under these rules. (B) Applicant's recourse. In the event that the utility shall refuse to serve an applicant under the provisions of these rules, the utility must inform the applicant of the basis of its refusal and that the applicant may file a complaint with the municipal regulatory authority or commission, whichever is appropriate. (C) Insufficient grounds for refusal to serve. The following shall not constitute sufficient cause for refusal of service to a present customer or applicant: (i) delinquency in payment for service by a previous occupant of the premises to be served; (ii) failure to pay for merchandise or charges for nonutility service purchased from the utility; (iii) failure to pay a bill to correct previous underbilling due to misapplication of rates more than six months prior to the date of application; (iv) violation of the utility's rules pertaining to operation of nonstandard equipment or unauthorized attachments which interfere with the service of others unless the customer has first been notified and been afforded reasonable opportunity to comply with these rules; (v) failure to pay a bill of another customer as guarantor thereof unless the guarantee was made in writing to the utility as a condition precedent to service; and (vi) failure to pay the bill of another customer at the same address except where the change of customer identity is made to avoid or evade payment of a utility bill. (4) Discontinuance of service. (A) The due date of the bill for utility service shall not be less than 15 days after issuance, or such other period of time as may be provided by order of the regulatory authority. A bill for utility service is delinquent if unpaid by the due date. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID -TEA DIVISION RAT a .bDa �� ---- ���i REVISION. DATII �E MD133DE" MA Do 170%, , '-- 1----- _ OF 10 (B) A utility may offer an inducement for prompt payment of bills by allowing a discount in the amount of 5.0% for payment of bills within 10 days after their issuance. This provision shall not apply where it conflicts with existing orders or ordinances of the appropriate regulatory authority. (C) A customer's utility service may be disconnected if the bill has not been paid or a deferred payment plan pursuant to paragraph (2)(D) of this section has not been entered into within five working days after the bill has become delinquent and proper notice has been given. Proper notice consists of a deposit in the United States mail, postage prepaid, or hand delivery to the customer at least five working days prior to the stated date of disconnection, with the words "Termination Notice" or similar language prominently displayed on the notice. The notice shall be provided in English and Spanish as necessary to adequately inform the customer, and shall include the date of termination, a toll -free number for the hours and addresses of locations where payment may be made, and a statement that if a health or other emergency exists, the utility may be contacted concerning the nature of the emergency and the relief available, if any, to meet such emergency. (D) Utility service maybe disconnected for any of the following reasons: (i) failure to pay a delinquent account or failure to comply with the terms of a deferred payment plan for installment payment of a delinquent account; (ii) violation of the utility's rules pertaining to the use of service in a manner which interferes with the service of others or the operation of nonstandard equipment, if a reasonable attempt has been made to notify the customer and the customer is provided with a reasonable opportunity to remedy the situation; (iii) failure to comply with deposit or guarantee arrangements where required by paragraph (5) of this section; (iv) without notice where a known dangerous. condition exists for as long as the condition exists; (v) tampering with the utility company's meter or equipment or bypassing the same. (E) Utility service may not be disconnected for any of the following reasons: (i) delinquency in payment for service by a previous occupant of the premises; (ii) failure to pay for merchandise or charges for nonutility service by the utility; (iii) failure to pay for a different type or class of utility service unless the fee for such service is included on the same bill; (iv) failure to pay the account of another customer as guarantor thereof, unless the utility has in writing the guarantee as a condition precedent to service; (v) failure to pay charges arising from an underbilling occurring due to any misapplication of rates more than six months prior to the current billings; (vi) failure to pay charges arising from an underbilling due to any faulty metering, unless the meter has been tampered with or unless such underbilling charges are due; (vii) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter reading plan, unless the utility is unable to read the meter due to circumstances beyond its control. (F) Unless a dangerous condition exists, or unless the customer requests disconnection, service shall not be disconnected on a day, or on a day immediately preceding a day, when personnel of the utility are not available to the public for the purpose of making collections and reconnecting service. (G) No utility may abandon a customer without written approval from the regulatory authority. TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID -TEA DIVISION Service Rules and Regulations P' • Distribution • DATEG OEM 0 1 ! OF I (II) No utility may discontinue service to a delinquent residential customer permanently residing in an individually metered dwelling unit when that customer establishes that discontinuance of service will result in some person residing at that residence becoming seriously ill or more seriously ill if the service is discontinued. Any customer seeking to avoid termination of service under this section must make a written request supported by a written statement from a licensed physician. Both the request and the statement must be received by the utility not more than five working days after the date of delinquency of the bill. The prohibition against service termination provided by this section shall last 20 days from the date of receipt by the utility of the request and statement or such lesser period as may be agreed upon by the utility and the customer. The customer who makes such request shall sign an installment agreement which provides for payment of such service along with timely payments for subsequent monthly billings. (5) Applicant deposit. (A) Establishment of credit for residential applicants. The utility may require a residential applicant for service to satisfactorily establish credit but such establishment of credit shall not relieve the customer from complying with rules for prompt payment of bills. Subject to these rules, a residential applicant shall not be required to pay a deposit: (i) if the residential applicant has been a customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last 12 consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; (ii) if the residential applicant furnishes in writing a satisfactory guarantee to secure payment of bills for the service required; or (iii) if the residential applicant furnishes in writing a satisfactory credit rating by appropriate means, including, but not limited to, the production of valid, generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity. (B) Reestablishment of credit. Every applicant who has previously been a customer of the utility and whose service has been discontinued for nonpayment of bills shall be required before service is rendered to pay a connect charge plus all his amounts due the utility or execute a written deferred payment agreement, if offered, and reestablish credit as provided in subparagraph (A) of this paragraph. (C) Amount of deposit and interest for residential service, and exemption from deposit. (i) The utility shall waive any deposit requirement for residential service for an applicant who has been determined to be a victim of family violence as defined in Texas Family Code, 871.004, by a family violence center, by treating medical personnel, by law enforcement agency personnel, or by a designee of the Attorney General in the Crime Victim Services Division of the Office of the Attorney General. This determination shall be evidenced by the applicant's submission of a certification letter developed by the Texas Council on Family Violence and made available on its web site. (ii) The required deposit shall not exceed an amount equivalent to one -sixth of the estimated annual billings. If actual use is at least twice the amount of the estimated billings, a new deposit requirement may be calculated and an additional deposit may be required within two days. If such additional deposit is not made, the utility may disconnect service under the standard disconnection procedure for failure to comply with. deposit requirements. (iii) All applicants for residential service who are 65 years of age or older will be considered as having established credit if such applicant does not have an outstanding account balance with the utility or another TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID -TEA DIVISION RATE SCHEDULEo I Service Rules and Regulations PP • Distribution System REVISIONO DATE: utility for the same utility service which accrued within the last two years. No cash deposit shall be required of such applicant under these conditions. (iv) Each utility which requires deposits to be made by its customers shall pay a minimum interest on such deposits according to the rate as established by law. If refund of deposit is made within 30 days of receipt of deposit, no interest payment is required. If the utility retains the deposit more than 30 days, payment of interest shall be made retroactive to the date of deposit. (I} Payment of interest to the customer shall be annually or at the time the deposit is returned or credited to the customer's account. (II) The deposit shall cease to draw interest on the date it is returned or credited to the customer's account. (D) Deposits for temporary or seasonal service and for weekend or seasonal residences. The utility may require a deposit sufficient to reasonably protect it against the assumed risk, provided such a policy is applied in a uniform and nondiscriminatory manner. (E) Records of deposits. (i) The utility shall keep records to show: (I) the name and address of each depositor; (II) the amount and date of the deposit; and (III) each transaction concerning the deposit. (ii) The utility shall issue a.receipt of deposit to each applicant from whom a deposit is received and shall provide means whereby a depositor may establish claim if the receipt is lost. (iii) A record of each unclaimed deposit must be maintained for at least four years, during which time the utility shall make a reasonable effort to return the deposit. (F) Refund of deposit. (i) If service is not connected or after disconnection of service, the utility shall promptly and automatically refund the customer's deposit plus accrued interest on the balance, if any, in excess of the unpaid bills for service furnished. The transfer of service from one premise to another within the service area of the utility shall not be deemed a disconnection within the meaning of these rules, and no additional deposit may be demanded unless permitted by these rules. (ii) When the customer has paid bills for service for 12 consecutive residential bills without having service disconnected for nonpayment of bill and without having more than two occasions in which a bill was delinquent and when the customer is not delinquent in the payment of the current bills, the utility shall promptly and automatically refund the deposit plus accrued interest to the customer in the form of cash or credit to a customer's account. (G) Upon sale or transfer of utility or company. Upon the sale or transfer of any public utility or operating units thereof, the seller shall file with the commission under oath, in addition to other information, a list showing the names and addresses of all customers served by such utility or unit who have to their credit a deposit, the date such deposit was made, the amount thereof, and the unpaid interest thereon. (H) Complaint by applicant or customer. The utility shall direct its personnel engaged in initial contact with an applicant or customer for service seeking to establish or reestablish credit under the provisions of these rules to TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID - TEA DIVISION tI- RT1111ELEO - - -- Service Rules and Regulations APPLICABLE1 Distribution 1 1• PAGE* 8 OF 10 infoI m the customer, if dissatisfaction is expressed with the utility's decision, of the customer's right to file a complaint with the regulatory authority thereon. (6) Billing. (A) Bills for gas service shall be rendered monthly, unless otherwise authorized or unless service is rendered for a period less than a month. Bills shall be rendered as promptly as possible following the reading of meters. (B) The customer's bill must show all the following information. The information must be arranged and displayed in such a manner as to allow the customer to compute his bill with the applicable rate schedule. The applicable rate schedule must be mailed to the customer on request of the customer. A utility may exhaust its present stock of nonconforming bill forms before compliance is required by this section: (i) if the meter is read by the utility, the date and reading of the meter at the beginning and end of the period for which rendered; (ii) the number and kind of units billed; (iii) the applicable rate schedule title or code; (iv) the total base bill; (v) the total of any adjustments to the base bill and the amount of adjustments per billing unit; (vi) the date by which the customer must pay the bill to get prompt payment discount, if applicable; (vii) the total amount due before and after any discount for prompt payment, if applicable, within a designated period; (viii) a distinct marking to identify an estimated bill. (G) Where there is good reason for doing so, estimated bills may be submitted, provided that an actual meter reading is taken at least every six months. For the second consecutive month in which the meter reader is unable to gain access to the premises to read the meter on regular meter reading trips, or in months where meters are not read otherwise, the utility must provide the customer with a postcard and request that the customer read the meter and return the card to the utility if the meter is of a type that can be read by the customer without significant inconvenience or special tools or equipment. If such a postcard is not received by the utility in time for billing, the utility may estimate the meter reading and render the bill accordingly. (D) Disputed bills: (i) In the event of a dispute between the customer and the utility regarding the bill, the utility must forthwith make such investigation as is required by the particular case and report the results thereof to the customer. If the customer wishes to obtain the benefits of clause (ii) of this subparagraph, notification of the dispute must be given to the utility prior to the date the bill becomes delinquent. In the event the dispute is not resolved, the utility shall inform the customer of the complaint procedures of the appropriate regulatory authority. (ii) Notwithstanding any other subsection of this section, the customer shall not be required to pay the disputed portion of the bill which exceeds the amount of that customer's average usage for the billing period at current rates until the earlier of the following: resolution of the dispute or the expiration of the 60- day period beginning on the day the disputed bill is issued. For purposes of this section only, the customer's average usage for the billing period shall be the average of the customer's usage for the same billing period during the preceding two years. Where no previous usage history exists, the average usage shall be estimated on the basis of usage levels of similar customers and under similar conditions. TARIFF FOR GAS SERVICE RATE SCHEDULE: APPLICABLE TO: EFFECTIVE DATE: (7) Meters. (A) Meter requirements. ATMOS ENERGY CORP., MID -TEA DIVISYON Service Rules and Regulations Distribution System 06/21/05 REVISION: DATE: PAGE: 9 OF 10 (i) Use of meter. A11 gas sold by a utility must be charged for by meter measurements, except where otherwise provided for by applicable law, regulation of the regulatory authority, or tariff. (ii) Installation by utility. Unless otherwise authorized by the regulatory authority, the utility must provide and install and will continue to own and maintain all meters necessary for measurement of gas delivered to its customers. (iii) Standard type. No utility may furnish, set up, or put in use any meter which is not reliable and of a standard type which meets generally accepted industry standards; provided, however, special meters not necessarily conforming to such standard types may be used for investigation, testing, or experimental purposes. (B) Meter records. The utility must keep the following records: (i) Meter equipment records. The utility must keep a record of all its meters, showing the customer's address and date of the last test. (ii) Records of meter tests All meter tests must be properly referenced to the meter record provided for therein. The record of each test made on request of a customer must show the identifying number and constants of the meter, the standard meter and other measuring devices used, the date and kind of test made, by whom made, the error (or percentage of accuracy) at each load tested, and sufficient data to permit verification of all calculations. (iii) Meter readings --meter unit location. In general, each meter must indicate clearly the units of service for which charge is made to the customer. (iv) Meter tests on request of customer. (I) The utility must, upon request of a customer, make a test of the accuracy of the meter serving that customer. The utility must inform the customer of the time and place of the test and permit the customer or his authorized representative to be present if the customer so desires. If no such test has been performed within the previous four years for the same customer at the same location, the test is to be performed without charge. If such a test has been performed for the same customer at the same location within the previous four years, the utility is entitled to charge a fee for the test not to exceed $15 or such other fee for the testing of meters as may be set forth in the utility's tariff properly on file with the regulatory authority. The customer must be properly informed of the result of any test on a meter that serves him. (II) Notwithstanding subclause (I) of this clause, if the meter is found to be more than nominally defective, to either the customer's or the utility's disadvantage, any fee charged for a meter test must be refunded to the customer. More than nominally defective means a deviation of more than 2.0% from accurate registration. (v) Bill adjustments due to meter error. (I) If any meter test reveals a meter to be more than nominally defective, the utility must correct previous readings consistent with the inaccuracy found in the meter for the period of either: (-a-) the last six months; or TARIFF FOR GAS SERVICE ATMOS ENERGY CORP., MID -TEA DIVISION RATESCHEDULE* Service Rules and Regulations ' i • Distribution System -- - REVISION. DATEe EFFECTIVE DATE* PAGE* 10 OF 10 (-b-) the last test of the meter, whichever is shorter. Any resulting underbillings or overbillings are to be corrected in subsequent bills, unless service is terminated, in which event a monetary adjustment is to be made. This requirement for a correction may be foregone by the utility if the error is to the utility's disadvantage. (II) If a meter is found not to register for any period of time, the utility may make a charge for units used but not metered for a period not to exceed three months previous to the time the meter is found not to be registering. The determination of amounts used but not metered is to be based on consumption during other like periods by the same customer at the same location, when available, and on consumption under similar conditions at the same location or of other similarly situated customers, when not available. (8) New construction. (A) Standards of construction. The utility is to construct, install, operate, and maintain its plant, structures, equipment, and lines in accordance with the provisions of such codes and standards as are generally accepted by the industry, as modified by rule or regulation of the regulatory authority or otherwise by law, and in such manner to best accommodate the public and to prevent interference with service furnished by other public utilities insofar as practical. (B) Line extension and construction charges. Every utility must file its extension policy. The policy must be consistent, nondiscriminatory, and is subject to the approval of the regulatory authority. No contribution in aid of construction may be required of any customer except as provided for in extension policy. (C) Response to request for service: Every gas utility must serve each qualified applicant for service within its service area as rapidly as practical. Asa general policy, those applications not involving line extensions or new facilities should be filled within seven working days. Those applications for individual residential service requiring line extensions should be filled within 90 days unless unavailability of materials or other causes beyond the control of the utility result in unavoidable delays. In the event that residential service is delayed in excess of 90 days after an applicant has met credit requirements and made satisfactory arrangements for payment of anyrequired construction charges, a report must be made to the regulatory authority listing the name of the applicant, location, and cause for delay. Unless such delays are due to causes which are reasonably beyond the control of the utility, a delay in excess of 90 days may be found to constitute a refusal to serve.