Atmos Energy Corporation 15 5 5 Blake Street, Suite 4 00 Denver, Colorado 80202
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Atmos Energy Corporation 15 5 5 Blake Street, Suite 4 00 Denver, Colorado 80202 Phone 303-831-5667 Jennifer Ries, Vice President Rates & Regulatory Affairs, Colorado/Kansas June 26, 2017 ADVICE LETTER NO. 530 Public Utilities Commission State of Colorado 1560 Broadway, Suite 250 Denver, Colorado 80202 The accompanying tariff sheets issued by Atmos Energy Corporation ("Atmos Energy" or the "Company") are being sent to you for filing in compliance with the requirements of the Public Utilities Law. Atmos Energy requests an effective date for the attached tariff sheets of July 27, 2017. The following tariff sheets are attached to this Advice Letter: Colorado P.U.C. No. 7 - Gas Cancels Colorado P.U.C. Colorado P.U.C. Sheet Number Title of Sheet Sheet Number Thirty-Fomth Revised Sheet No. 9 Cost Adjustment & Rate Component Thirty-Third Revised Sheet No. 9 Summary Nineteenth Revised Sheet No. 11 Cost Adjustment & Rate Component Eighteenth Revised Sheet No. 11 Summaiy Eilrth Revised Sheet No. 15 General Service Seventh Revised Sheet No. 15 Sixth Revised Sheet No. 17 Irrigation Service Fifth Revised Sheet No. 17 Fifth Revised Sheet No. 19 General Rate Schedule Adjustment Fourth Revised Sheet No. 19 Rider Ninth Revised Sheet No. 23 Firm Transportation Service Eighth Revised Sheet No. 23 Fifth Revised Sheet No. 27 System Safety and Integrity Rider Fourth Revised Sheet No. 27 Second Revised Sheet No. RS Natural Gas Service General First Revised Sheet No. RS First Revised Sheet No. R29 Optional Excess Flow Valve ("EFV") Original Sheet No. R29 Service The principal proposed change is to place into effect certain changes to the Company's rates that will, if approved, result in an increase to the Company's annual revenues by the amount of $3,389,695, or approximately 3.38%, based on the twelve months ended March 31, 2017. The annual revenue increase reflects the increase to base rates and the proposed recovery of Rate Case expenses. The proposed filing would also allow the Company the opportunity to earn a 10.50% return on equity and an 8.14% return on rate base. The Company requests that the change in rates proposed in this filing become effective on July 27, 2017. Atmos Energy Corporation 1555 Blake Street, Suite 400 Denver, Colorado 80202 Phone 303-831-5667 Jennifer Ries, Vice President Rates & Regu/atmy Affairs, Colorado/Kansas The proposed change in base rates will be made through a General Rate Schedule Adjustment Rider ("GRSA") to the base rates listed on the Company's general rate schedules (including facilities charge, distribution system charge, and transportation service fees) and will affect residential, commercial, irrigation and transportation customers. The base rate portion of the GRSA will be 8.52%. Furthermore, the change in base rates will address increased O&M and decreased depreciation expense, which includes increases in labor and benefits, bad debt and other increases in addition to a higher return on equity. The Company is proposing to recover rate case expenses incurred in this docket through a GRSA over a period of one year. The GRSA increase includes rate case expenses of 1.19%. If approved, the tariffs would be applied to complete billing cycles that commence on or after the effective date of the filing. The proposed change in base rates will provide the Company with a means to recover the increased cost of investing in the Company's gas distribution system. The Company has invested more than $20. 7 million in its natural gas delivery system since the last filed cost of service increase based on a historic test year ending March 31, 2017. Additionally, the Company's proposal includes an extension of the System Safety and Integrity Rider ("SSIR") which will allow the Company to recover the costs associated with various pipeline safety and integrity projects. The Company also proposes to consolidate its four GCA divisions into two GCA divisions. The following table summarizes the impact on the Company's various classes of customers by region, showing average monthly bill at present and proposed rates: 2 Atmos Energy Corporation 1555 Blake Street, Suite 400 Denver, Colorado 80202 Phone 303-831-5667 Jennifer Ries, Vice President Rates & Regulatory Affairs, Colorado/Kansas Average Monthly Bill - Average Monthly Bill- Region Percentage Change Present Rates Proposed Rates Northeast: Residential $50.53 $52.44 3.8% Commercial $226.13 $231.68 2.5% Irrigation $153.66 $159.10 3.5% Transportation $801.92 $870.21 8.5% Northwest/Central: Residential $64.15 $66.35 3.4% Commercial $293.70 $300.19 2.2% Transportation Southeast: Residential $46.67 $48.56 4.0% Commercial $152.39 $156.94 3.0% Irrigation $304.30 $312.34 2.6% Transportation $302.53 $328.30 8.5% Southwest: Residential $45.32 $47.36 4.5% Commercial $178.09 $183.73 3.2% Transportation $1,767.94 $1,918.49 8.5% Atmos Energy has filed the testimony and exhibits of the following Company representatives in support of the rate increase and tariff changes requested by the Company in this filing: Ms. Jennifer G. Ries, Mr. Joe T. Christian, Mr. John S. McDill, Mr. Christian L. Paige, Mr. Jared N. Geiger, Mr. Robert B. Hevert and Mr. Jason L. Schneider. Please send copies of all notices, pleadings, correspondence and other documents and materials related to this filing to the following individuals: 3 Atmos Energy Corporation 1555 Blake Street, Suite 400 Denver, Colorado 80202 Phone 303-831-5667 Jennifer Ries, Vice President Rates & Regulatory Affairs, Colorado/Kansas Jennifer G. Ries Thorvald A. Nelson. Vice President Rates & Regulatory Affairs Emanuel T. Cocian Atmos Energy Corporation Holland & Hart LLP 1555 Blake Street, Suite 400 63 80 South Fiddlers Green Circle, Denver, CO 80202 Suite 500 Telephone: (303) 831-5667 Greenwood Village, CO 80111 Fax: (303) 837-9549 Telephone: (303) 290-1600 [email protected] Fax: (303) 975-5290 [email protected] [email protected] Douglas C. Walther Deputy General Counsel Atmos Energy Corporation 5430 LBJ Freeway, Suite 1800 Dallas, TX 75240 Telephone: (972) 855-3102 Fax: (214) 550-9302 [email protected] And, for electronic service only, [email protected] [email protected] [email protected] ifer . Ries - V ce President Rates & Regulatory Affairs Atmos Energy Corporation 4 ATMOS ENERGY CORPORATION Colo. P.U.C. No. 7 Gas 1555 Blake St., Suite 400 Thhiy-Fourth Revised Sheet No. 9 Denver, Colorado 80202 Cancels Thirty-Third Revised Sheet No. 9 NATURAL GAS RATES Cost Adjustment & Rate Component Summary All volumetric rates at$ per CCF Class/Sheet Division 1 Division 2 No. T~ge of Charge NE NW/C SE SW Residential 15 Facilities Charge $12.59 $12.59 $12.59 $12.59 {I,1,1,1) PIPP $0.00 $0.00 $0.00 $0.00 GasDSMCA $0.10 $0.10 $0.10 $0.10 Gas Cost Adjustment (GCA): Commodity $0.33385 $0.32796 $0.32321 $0.33 I IO Upstream Pipeline 0.18200 0.19745 0.09999 0.02423 Deferred Gas Cost (0.02740) (0.01860) 0.01780 (0.02480) TotalGCA $0.48845 $0.50681 $0.44100 $0.33053 Distribution System Rate 0.20494 0.20494 0.20494 0.20494 (I,I,l,I) Volumetric DSMCA 0.00156 0.00156 0.00156 0.00156 Volumetric SSIR Surcharge 0.01987 0.01987 0.01987 0.01987 Total volumetric rate for class $0.71482 $0.73318 $0.66737 $0.55690 (I,I,I,I) Small Commercial & Commercial 15 Facilities Charge $30.65 $30.65 $30.65 $30.65 (l,I,I,I PIPP $0.00 $0.00 $0.00 $0.00 GasDSMCA $0.55 $0.55 $0.55 $0.55 Gas Cost Adjustment (GCA): Commodity $0.33385 $0.32796 $0.32321 $0.33110 Upstream Pipeline 0.18200 0.19745 0.09999 0.02423 Deferred Gas Cost (0.02740) (0.01860) 0.01780 (0.02480) Total GCA $0.48845 $0.50681 $0.44100 $0.33053 Distribution System Rate 0.12095 0.12095 0.12095 0.12095 (I,I,I,I) Volumetric DSMCA 0.00215 0.00215 0.00215 0.00215 Volumetric SSIR Surcharge O.Oll73 0.01173 0.01173 0.01173 Total volumetric rate for class $0.62328 $0.64164 $0.57583 $0.46536 (I,I,I,I) Irrigation Service 17 Facilities Charge $49.02 NA $49.02 NA (1,1) PIPP $0.00 $0.00 Gas Cost Adjustment (GCA): Commodity $0.33385 NA $0.32321 NA Upstream Pipeline 0.18200 0.09999 Deferred Gas Cost (0.02740) 0.01780 Total GCA $0.48845 $0.44100 Distribution System Rate 0.11183 0.11183 (I,I) Volumetric SSIR Surcharge 0.01084 0.01084 Total volumetric rate for class $0.611!2 ~0.56367 (I,I) DONOTWlUTE INTIDSSPACE Advice Letter No. 530 s/Jennifer Ries Issue Date: June 26, 2017 Decision or Authority No. Title: Vice-President Effective Date: July 27, 2017 Rates and Regulatory Affairs ATMOS ENERGY CORPORATION Colo. P.U.C. No. 7 Gas 1555 Blake St., Suite 400 Nineteenth Revised Sheet No. 11 Denver, Colorado 80202 Cancels Eighteenth Revised Sheet No. 11 NATURAL GAS RATES Cost Adjustment & Rate Component Summmy All volumetric rates at $ per CCF Class/Sheet Division l Division2 --1fu..._ Type of Cha.. ge _filL_ NW/C _fil'......_ ___filY_ Transportation Servke 23,25 Facilities Charge $91.92 $91.92 $91.92 $91.92 (I,I,I,I) Gas Cost Adjustment (GCA): Commodity NA NA NA NA Upstream Pipeline NA NA NA NA DefeITed Gas Cost NA NA NA NA Transportation Gas Cost Adj. $0.00601 $0.00601 $0.00601 $0.00601 TotalGCA $0.00601 $0.00601 $0.00601 $0.00601 Ma." Distribution System Rate 0.09953 0.09953 0.09953 0.09953 (I,l,I,I) Volumetric SSIR Surcharge 0.00965 0.00965 0.00965 0.00965 Total volumetric rate for class $0.11519 $0.11519 $0.11519 $0.11519 (I,I,I,I) DO NOT WRITE IN THIS SPACE Advice Letter No.