Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 8

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 1
Chunk 8
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As an instrument to reduce regulatory lag, formula rate mechanisms allow us to refresh our rates on an annual basis without filing a formal rate case. However, these filings still involve discovery by the appropriate regulatory authorities prior to the final determination of rates under these mechanisms. We currently have specific infrastructure programs in all of our distribution divisions with tariffs in place to permit the investment associated with these programs to have their surcharge rate adjusted annually to recover approved capital costs incurred in a prior test-year period. The following table summarizes our annual formula rate mechanisms by state.

Annual Formula Rate MechanismsStateInfrastructure ProgramsFormula Rate MechanismsColoradoSystem Safety and Integrity Rider (SSIR)—KansasGas System Reliability Surcharge (GSRS), System Integrity Program (SIP)—KentuckyPipeline Replacement Program (PRP)—Louisiana(1)Rate Stabilization Clause (RSC)MississippiSystem Integrity Rider (SIR)Stable Rate Filing (SRF)Tennessee(1)Annual Rate Mechanism (ARM)TexasGas Reliability Infrastructure Program (GRIP), (1)Dallas Annual Rate Review (DARR), Mid-Tex Rate Review Mechanism (RRM)VirginiaSteps to Advance Virginia Energy (SAVE)—

(1)    Infrastructure mechanisms in Texas, Louisiana, and Tennessee allow for the deferral of all expenses associated with capital expenditures incurred pursuant to these rules, which primarily consists of interest, depreciation, and other taxes (Texas and Tennessee only), until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates.

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The following table summarizes our annual formula rate mechanisms with effective dates during the fiscal years ended September 30, 2025, 2024, and 2023: 

DivisionJurisdictionTest YearEndedIncreaseinAnnualOperatingIncomeEDIT ImpactIncrease (Decrease) in Annual Operating Income Excluding EDITEffectiveDate  (In thousands) 2025 Filings:LouisianaLouisiana12/2024$22,304 $1,473 $23,777 07/01/2025Atmos Pipeline - TexasTexas12/202477,206 — 77,206 06/17/2025Kentucky/Mid-StatesTennessee ARM09/20241,432 — 1,432 06/01/2025Mid-TexDARR09/202425,916 — 25,916 06/01/2025Kentucky/Mid-StatesKent