S
Total Page:16
File Type:pdf, Size:1020Kb
-I enm :::! s:: 0z -< 0 0z -I .9 G) m C5 m }J c.. z BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF ADVICE LETTER ) NO. 530, FILED BY ATMOS ENERGY ) CORPORATION TO PLACE INTO ) Proceeding No. 17AL-_G EFFECT TARIFF SHEET CHANGES TO ) BE EFFECTIVE ON JULY 27, 2017 ) DIRECT TESTIMONY AND ATTACHMENTS OF JARED N. GEIGER June 26, 2017 SUBMITTED ON BEHALF OF ATMOS ENERGY CORPORATION TABLE OF CONTENTS I. EXECUTIVE SUMMARY ........................................................................................ 1 II. INTRODUCTION AND PURPOSE OF TESTIMONY ........................................... 2 UL BILLING DETERMINANTS ................................................................................... 4 IV. WEATHER NORMALIZATION ADJUSTMENT ................................................... 7 V. CONSOLIDATED GCA .......................................................................................... 11 VI. OTHERADJUSTMENTS ....................................................................................... 18 VII. PROPOSED RATES ................................................................................................ 22 VIII. TARIFF CHANGES ................................................................................................ 23 IX. CONCLUSION ........................................................................................................ 24 ATTACHMENTS: Attachment JN G-1 - Baseline Schedule 2 Attachment JNG-2 - GCA Consolidation Analysis Attachment JNG-3 - Craig Compressor Station Impact Attachment JNG-4 - Summary of Adjustments to Transport Customers Attachment JNG-5 -Proposed Tariffs in Legislative Format Attachment JNG-6 -Proposed Tariffs in Clean Format i. l Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. 2 A. My name is Jared N. Geiger. I am the Senior Rate Analyst for Atmos Energy 3 Corporation's ("Atmos Energy" or the "Company") Colorado-Kansas Division. 4 My business address is 1555 Blake Street, Suite 400, Denver, Colorado 80202. 5 I. EXECUTIVE SUMMARY 6 In my direct testimony, l address the development of billing determinants 7 for Atmos Energy's Colorado Division. As part of this discussion, I explain how 8 Atmos Energy's Billing Determinants Study ("BDS") was conducted, and how the 9 results from the BDS are used to calculate the Company's revenues based on both 10 current and proposed rates. The BDS provides detailed data which can be used in 11 order to describe and calculate adjustments for normalized weather and customer 12 bill proration. These adjustments provide the utility with the opportunity to collect 13 the revenue approved by the Commission. In addition, I describe why 14 consolidating the Company's four Gas Cost Adjustment ("GCA") divisions into 15 two divisions aligns the rate divisions with the functional manner in which the 16 Company provides services to the state. The alignment results in a more efficient 17 practice and provides enhanced flexibility and optionality to the Company and 18 benefits to its ratepayers. 19 I then discuss the Company's Weather Nonnalization Adjustment 20 ("WNA"), which is used to reduce or eliminate the impact of abnormal weather 21 conditions on Atmos Energy's customer's consumption of natural gas. The 22 Weather Normalization Adjustment is an important component of accurately 23 forecasting the Company's revenues. I propose using the methodology settled upon Direct Testimony of Jared N. Geiger Page 1 Colorado I Geiger Direct Testimony in the Company's most recent rate case. Finally, I address how the Company has 2 calculated the forecasted revenues that would result from Atmos Energy's proposal 3 in this proceeding. 4 II. INTRODUCTION AND PURPOSE OF TESTIMONY 5 Q. PLEASE DESCRIBE YOUR CURRENT RESPONSIBILITIES AND 6 PROFESSIONALAND EDUCATIONAL BACKGROUND. 7 A. I received my Bachelor of Business Administration degree in Finance from the 8 University of Nmih Texas in 2008. I was hired by Atmos Energy in 2008 as an 9 Associate Rate Analyst in the Rates and Regulatory Affairs department. In this role 10 I prepared annual Weather Normalization Adjustment filings in Kansas and annual 11 rate stabilization mechanism filings in Louisiana. In 2011, I was promoted to the 12 position of Rate Analyst within the same department. In this position I prepared 13 billing determinant studies in rate filings for several jurisdictions. In addition, I 14 reviewed various analytical exhibits, provided requested data to regulatory bodies, 15 reviewed testimony, and supported witnesses during filing procedures for rate 16 filings. In 2012, I assumed the role of Regulatory and Financial Planning Analyst 17 for Atmos Energy's Business Planning and Analysis group. There, I helped prepare 18 annual divisional and depa1imental budgets and assisted in preparing Atmos 19 Energy's 5-Year Plan and Budget Board Book for the Atmos Energy Board of 20 Directors. In 2013, I relocated to the Company's Colorado-Kansas Division and 21 assumed my cun-ent role. As Senior Rate Analyst, I am responsible for the 22 determination of cun·ent revenues based on cunent rates, pro fotma customers and Direct Testimony of Jared N. Geiger Page2 Colorado I Geiger Direct Testimony 1 weather-normalized volumes, as well as revenues to be generated by the 2 Company's proposed rates. 3 Q. HAVE YOU EVER SUBMITTED TESTIMONY BEFORE THE 4 COLORADO PUBLIC UTILITIES COMMISSION? 5 A. Yes, I filed testimony before the Colorado Public Utilities Commission 6 ("Commission") in several of the Company's most recent general rate case 7 proceedings. 1 8 Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE OTHER REGULATORY 9 COMMISSIONS? 10 A. Yes, I submitted testimony before the Kansas Corporation Commission in the 11 Company's prior general rate case proceedings.2 12 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN TIDS 13 PROCEEDING? 14 A. I discuss the following issues: 15 1. The development of Atmos Energy Colorado's BDS. 16 2. The consolidation of Atmos Energy's four GCA divisions into two 17 divisions. 18 3. The revenues resulting from the billing determinants using both the present 19 and the proposed rates. 20 Q. ARE YOU SPONSORING ANY ATTACHMENTS? 21 A. Yes. I am sponsoring the following attachments: Proceeding Nos. 13AL-0496G, 14AL-0300G and 15AL-0299G. 2 Docket Nos. 14-ATMG-320-RTS and 16-ATMG-079-RTS. Direct Testimony of Jared N. Geiger Page3 Colorado I Geiger Direct Testimony 1. JNG-1 - Baseline Schedule 2 2 2. JNG-2 - GCA Consolidation Analysis 3 3. JNG-3 - Craig Compressor Station Impact 4 4. JNG-4 - Summary of Adjustments to Transport Customers 5 5. JNG-5 - Proposed Tariffs in legislative format 6 6. JNG-6 - Proposed Tariffs in clean format 7 III. BILLING DETERMINANTS 8 Q. WHAT ARE BILLING DETERMINANTS? 9 A. Billing determinants are units of service to which the Company's distribution rates 10 are applied. Specifically, these units include gas throughput sold or transported, 11 customer counts, and quantities of various non-recuning customer service 12 transactions. 13 Q. WHAT IS THE PURPOSE OF CONDUCTING A BDS? 14 A. The BOS provides the data and calculations necessary to adjust volumes delivered 15 to reflect normal weather conditions, annualize changes in usage patterns by 16 industrial customers, and account for other known and measurable adjustments. 17 Some of the other known and measurable adjustments include large volume sales 18 adjustments made separate from the weather normalization, and a proration 19 adjustment to bill counts. In doing so, the BDS aggregates revenue from all of the 20 Company's rates in Colorado. The BOS calculations, also refen-ed to as "Revenues 21 at Present Rates," are shown in Schedule 2 of the Company's Cost of Service Direct Testimony of Jared N. Geiger Page4 Colorado I Geiger Direct Testimony ("COS") model filed in this case. 3 Schedule 2 shows the total effect of the 2 aforementioned adjustments. The billing determinants are critical in order to more 3 accurately forecast Company revenues for the 12-month period after rates become 4 effective. 5 Q. PLEASE DESCRIBE THE CALCULATIONS REFLECTED IN SCHEDULE 6 2 OF THE COS MODEL. 7 A. Table JN G-1 provides the impact to per book revenues resulting from the calculated 8 adjustments reflected in Schedule 2. 9 Table JNG-1 - Total Revenue Impact from Adjustments (Increase/Decrease) Large Adjusted Per Book Volumes Present Base Class Revenue WNA Sales Proration Revenue Residential $28 323,211 $995.955 $(298.996) $29.020. 171 Commercial $9 357 812 $330.012 $(1 214) $(50.487) $9.636.124 Irrigation $10 561 $(110) $10.451 Max Rate- Commercial $999,584 $85,490 $1,085,074 Special Contract $1,469,023 $(65,721) $1,403,303 Other Revenues $376,952 $376,952 Total $40,537,144 $1,325,967 $18,555 $(349,593) $41 532 075 10 The calculated adjustments contained in Schedule 2 are comprised of the following: 11 • Columns (b) and ( c) reflect actual, per books bill counts and billed volumes 12 by tariff for the test year in this proceeding (i.e., the 12-rnonth period ended 13 March 31, 2017). Attachment JTC-5 contains the complete COS. Attachment JNG-1 is a copy of Schedule 2 from the COS, provided for the convenience of the Commission and parties. Direct Testimony of Jared N. Geiger Page 5 Colorado I Geiger Direct Testimony 1 • Column ( d) shows the adjustments necessary for tariff sales volumes to 2 reflect "normal" weather for the period. It also includes a volume 3 adjustment to reflect an isolated adjustment to Commercial Sales volumes. 4 • Columns (e) and (f) demonstrate a proration adjustment to sales service 5 customer