Item 5- Atmos Energy Mid-Tex Division Presentation — original pdf

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Atmos Energy, Mid-Tex Division For Austin Resource Management Commission June 17, 2025 Item 5Atmos Energy (Mid-Tex) Service Territory – Austin, TX I W E V R E V O I W E V R E V O Cities in the Atmos Texas Municipalities (ATM) Coalition Austin Fredericksburg Lampasas Balch Springs Gatesville Bandera Blooming Grove Burnet Cameron Cedar Park Clifton Commerce Goldthwaite Granbury Greenville Groesbeck Hamilton Heath Henrietta Leander Longview Marble Falls Mart Mexia Olney Pflugerville Point Copperas Cove Hickory Creek Princeton Corsicana Electra Hico Hillsboro Ranger Rice Riesel Rockdale Rogers Round Rock San Angelo Sanger Somerville Star Harbor Trinidad Whitney I W E V R E V O Austin, TX Service Territory Atmos Energy Mid-Tex Division BY THE NUMBERS 11,019 Customers 120 Miles of Pipeline 125 Employees $226,895 Charitable Giving I W E V R E V O Mid-Tex Division BY THE NUMBERS 1.8 Million Customers 32,827 Miles of Pipeline 1,978 Employees 550 $1.4 Billion FY24 Capital Investment $8.8 Million Communities Served Charitable Giving Y T E F A S Safety Drives Everything We Do Our vision is to be the safest provider of natural gas services, and we are doing our part to modernize the nation’s aging natural gas delivery network. Over the last 10 years, we have invested more than $10 billion to modernize our pipeline infrastructure and have committed to spending approximately $24 billion over the next five years. Y T E F A S Training for Safe Operations Atmos Energy field employees receive extensive in-person, virtual, and hands-on training and participate in our Pipeline Safety Management System that provides continuous feedback. 9,000 Hours spent on safety training across the enterprise in FY23. 2 Million+ Hours of training at the Charles K. Vaughan Center since its opening in 2010. Y T E F A S M E T S Y S Reducing Third-Party Pipeline Damage Safe digging starts with calling 811 to have underground utility- owned lines located and marked. It’s free. It keeps you safe. It’s the law. Call 811 Before You Dig • Natural gas safety is a partnership, so we want everyone to understand the importance of calling 811 before building a deck, planting a tree, installing a fence, or digging for any other project. • The most common cause of outside natural gas leaks is excavation that damages natural gas pipelines. APWA Uniform Color for Marking Underground Utility Lines Red: Electric Yellow: Gas Orange: Communication Blue: Potable Water Purple: Reclaimed water, Irrigation Green: Sewer White: Proposed excavation Pink: Temporary survey Gus the Gopher is our natural gas safety ambassador, reminding you to always call 811 before digging! I Y T N U M M O C Fueling Safe and Thriving Communities Whether it is reading to students, working with local food banks, or showing appreciation to our hometown heroes, our employees have always invested in the communities we call home. Our Fueling Safe and Thriving Communities program focuses on three essential pillars: Fueling bright minds and healthy futures for our kids. Fueling honor and thanks for our community heroes. Fueling hope and growth for our neighbors. I Y T N U M M O C Helping Our Communities Stay Warm Helping our communities stay warm during the year is one of Atmos Energy’s highest priorities. Through a variety of energy assistance programs, in 2024 we helped more than 57,000 eligible household access $22.6 million to help pay their natural gas bills. • Atmos Energy and our customers partner to provide funds through our Sharing the Warmth program. In 2024, approximately $4.4 million was donated to help support customers in need. • The federal Low Income Home Energy Assistance Program (LIHEAP) releases funds every winter to all states to pay utility bills. We also maintain partnerships with Habitat for Humanity chapters to construct new, energy-efficient homes for deserving families throughout our service area. S A G L A R U T A N F O E U L A V The Role of Natural Gas in the Texas Energy Portfolio It takes a diverse mix of energy sources working together to provide reliability, keep costs affordable, and drive economic growth. 5.1 million Texas homes have natural gas. 13% Average annual CO2 savings of a home with natural gas in Texas compared to an all- electric home. 26,671 Texas households that received financial assistance from Atmos Energy in 2024. $331 Average annual savings of a home with natural gas in Texas compared to an all-electric home. $10.4 million Financial assistance provided to Texas customers in 2024. 25% Texas households that qualified for federal assistance in 2024. Cost and carbon savings generated from GTI Energy Source Energy and Emissions Analysis tool. Calculated using 2024 EIA eGRID electric rates and Atmos Energy average state rates for a home with Energy 3.1 rated (gas & electric) furnace, heat pump, water heater, stove and clothes dryer. A home that is all electric compared to a similar home with gas appliances for furnace, heat pump, water heater, stove and clothes dryer. Estimated number of natural gas homes sourced from the Energy Information Administration. Efficiency of the Direct Use of Natural Gas y c n e c i f f i E y g r e n E SmartChoice Rebate Program y c n e c i f f i E y g r e n E y c n e c i f f i E y g r e n E Customers in our Mid-Tex division can take advantage of SmartChoice rebates on high- efficiency furnaces, tankless water heaters, smart thermostats, and more. These rebates help customers save money, conserve energy, and lower their carbon footprint every month. We also offer a FREE Energy Savings Kit that includes water-saving devices, a dimmable LED light bulb, rope caulking, weatherstripping, and more. https://www.atmosenergy.com/ways-to-save/mid-tex- appliance-rebate-program/ y c n e c i f f i E y g r e n E Mid-Tex SmartChoice Energy Efficiency Rebates Eligible Equipment and Weatherization Upgrades Natural Gas Furnace (90% AFUE or higher) Natural Gas Tankless Water Heater (.87 UEF or higher) Natural Gas Tank Water Heater (.68 or UEF or higher) Natural Gas Clothes Dryer Smart Thermostat 2024 CEE Report Rebates Up to $350 Up to $300 Up to $200 $75 $75 y c n e c i f f i E y g r e n E Keeping the Warmth Low Income Energy Efficiency Program 2024 CEE Report y c n e c i f f i E y g r e n E SmartChoice and Keeping the Warmth Budget and Savings Program Year 2024 July 1, 2023- June 30, 2024 Rebates Low Income Administration Total CEE Budget $1,149,872 $648,240 $201,228 $1,999,340 CEE Actuals $1,032,014 $644,714 $190,923 $1,867,652 Dekatherms Saved 35,860 2,084 Tons of Carbon Reduction 37,944 2,220 I N O T A M R O F N I E T A R Capital Expenditures in the Mid-Tex Division ) s n o i l l i M n I ( $1,600.0 $1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 $0.0 $1,026.7 $1,045.4 $799.3 $1,304.1 $1,490.1 2020 2021 2022 2023 2024 I N O T A M R O F N I E T A R Net Plant in Service and Rate Base- Systemwide $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 ) s n o i l l i M n I ( $3,000 $2,000 $1,000 $- $6,966 $6,070 $8,112 $7,147 $9,396 $8,299 $5,227 $4,395 $6,112 $5,235 2020 2021 2022 2023 2024 Net Plant Rate Base I N O T A M R O F N I E T A R Average Bill for Residential Customers in Austin, TX $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- $19.35 $4.14 $30.99 $12.95 $4.02 $26.45 $30.65 $4.40 $18.85 $3.66 $36.14 $41.23 $21.16 $3.56 $47.96 $21.16 $18.70 $25.00 2020 2021 2022 2023 2024 2025 Customer Charge Volumetric Charge (Ccf) Cost of Gas (Ccf) I N O T A M R O F N I E T A R Average Bill for Commercial Customers in Austin, TX $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 $359.40 $281.34 $281.34 $235.66 $35.34 $81.27 $138.19 $33.03 $66.80 $35.72 $97.74 $242.39 $35.17 $114.35 $103.17 $36.18 $136.68 $140.00 2020 2021 2022 2023 2024 2025 Customer Charge Volumetric Charge (Ccf) Cost of Gas (Ccf) I N O T A M R O F N I Historical Average Bill for Residential and Commercial Customers in Austin, TX E T A R Residential Average Bill Customer Charge Volumetric Charge (Ccf) Cost of Gas (Ccf) Avg Consumption (Ccf) $ $ $ $ 2020 43.42 26.45 0.14846 0.47805 27.1 $ $ $ $ 2021 54.48 30.99 0.14846 0.69461 27.9 $ $ $ $ 2022 71.19 $36.14 0.14846 1.03379 29.6 $ $ 2023 63.74 $41.23 0.14846 0.76568 24.6 $ $ 2024 72.68 $47.96 0.14846 0.88303 24.0 $ $ 2025 64.86 $25.00 0.78025 0.88303 24.0 $ $ Commercial Average Bill Customer Charge Volumetric Charge (Ccf) Cost of Gas (Ccf) Avg Consumption (Ccf) $ $ $ $ $ $ 2020 238.01 $66.80 0.09165 0.38350 360.3 2021 352.27 $81.27 0.09165 0.61114 385.6 $ $ 2022 492.87 $97.74 0.09165 0.92209 389.8 $ $ 2023 391.91 $114.35 0.09165 0.63157 383.8 $ $ 2024 454.20 $136.68 0.09165 0.71265 394.8 $ $ 2025 524.50 $140.00 0.26133 0.71265 394.8 $ $ $ $ Atmos Energy Customers I N O T A M R O F N I E T A R I N O T A M R O F N I E T A R Line Extension and Construction Charges Goals of Line Extension Policies: • Line extension policies developed thus far are designed to: o Prevent discrimination among residential and commercial customers by providing all customers the same amount of equipment necessary to receive service. o Avoids long-term cross-subsidies o Prevents uneconomic expansion of the natural gas system Railroad Commission of Texas Rule 7.45: Quality of Service: • “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.” I N O T A M R O F N I E T A R Line Extension and Construction Charges Atmos Energy’s Line Extension Policy – Mid-Tex Division’s Quality of Service Rules: “In the absence of a line extension policy specific to a city franchise agreement, the following policy shall apply: The utility shall be required to extend distribution mains in any Public Rights-of-Way up to seventy- five feet (75’) to provide new or additional service requested by any one residential or commercial customer so long as such extension is operationally feasible. To the extent that the gas main extension would exceed seventy-five feet (75’), it shall be made only upon execution of a special agreement providing for reimbursement to Company for the cost of the necessary gas main extension. For industrial customers, gas main extensions of any length shall only be made upon execution of a special agreement providing for agreed upon reimbursement to Company for cost of the necessary gas main extension.” I N O T A M R O F N I E T A R Cost Recovery from Winter Storm Uri • After the February 2021 storm, the Texas Legislature ultimately passed legislation that would provide an alternative to traditional gas cost recovery for these extraordinary costs. The Legislature chose to provide utilities the option of recovering those costs over a longer period of time* so that the impact to customers’ rates would be manageable. In addition, the legislation provided for statewide securitization, which lowered the financing costs and lessened the ultimate rate impact of this longer recovery period. *Gas costs are typically recovered from customers through a monthly volumetric charge referred to as a “gas cost adjustment mechanism,” which generally recovers a utility’s gas cost over a 12-month period. • Atmos Energy then filed its Application for Customer Rate Relief And Related Regulatory Asset Determination with the Railroad Commission, Docket No. 7062, in which the Commission approved the Rider CRR - Customer Rate Relief. Cost Recovery from Winter Storm Uri The current Customer Rate Relief (CRR) charge is $0.118 per Ccf and is recovered through the Gas Cost Recovery Rider pursuant to the terms of that tariff. I N O T A M R O F N I E T A R Thank you. Shelly Bass MPA Name Kelly Biegler Email Chris Felan Phone Number