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2019 DARR Filing

Atmos Energy submitted its filing under the Dallas Annual Rate Review (DARR) to the City of Dallas on
January 15, including a requested increase in annual revenue of approximately $10.1 million.

The city will now thoroughly review the filing to confirm that our rates are calculated correctly and
adhere to state law. Atmos Energy will then review the city’s conclusions and work to determine final
rates which will be implemented on June 1, 2019.

What are the drivers behind your request for a $10.1 million increase?
In 2018, Atmos Energy invested over $119 million in the City of Dallas

88 miles of distribution pipe replaced

47 miles of steel replaced

40 miles of cast iron replaced

1 mile of vintage plastic replaced

8,000+ steel service lines replaced

Overall, the DARR filing package supports over $465 million of total capital investment made
in the Mid-Tex system, with over $363 million spent to improve system safety and reliability.

What new costs were included in the filing?

• Gas plumbing repairs totaling $4.1 million for homes affected in the planned outage.
• House plumbing costs are normally the customer’s responsibility, but we paid to fix customer
piping issues in order to enhance safety and restore service weeks sooner than would have otherwise
been possible
• To minimize customer impact, we propose to spread recovery of this cost over three years

What recoverable costs were voluntarily excluded from the request?

• We voluntarily removed $20 million of customer assistance costs associated with the planned outage,
• Financial assistance such as cash disbursements and retail gift cards
• Lodging, meals and rent assistance
• Claim disbursements
• City of Dallas services including fire department and police support, among others
• Security services to support customer information centers

What difference will customers see on their bills?

• The average residential customer will see an increase of $3.05/month, an overall increase of 4.97%
• The average commercial customer will see an increase of $9.70/month, an overall increase of 2.72%