Appendix

For residential customers using 50 MMBtu per year the average bill is $52.95

For residential customers using 100 MMBtu per year the average bill is $85.84

This is a metric that we do not publicly disclose. However, we proactively work with customers to provide them with solutions should they experience financial hardship. We are able to provide our customers with financial assistance should the need arise through programs like Sharing the Warmth and LiHEAP. More information about our Energy Assistance Programs can be found in Fueling Safe and Thriving Communities.

Gas savings efficiency measures are only permissible in jurisdictions where it is allowed by our regulators. Currently we have four energy efficiency programs in our service areas.

Colorado (Tariff Sheet 8a)
Gas Demand-Side Management Cost Adjustment (G-DSMCA) All sales rate schedules for natural gas service are subject to a Gas Demand-Side Management Adjustment (“G-DSMCA”) Designed to prospectively recover prudently incurred costs of Demand-Side Management Programs (“DSM Programs”) in accordance with Gas Demand-Side Management Rules 4750 through 4760 of the Commission’s Rules Regulating Gas Utilities and Pipeline Operators, 4 Code of Colorado Regulations 723-4 (“Gas DSM Rules”). The G-DSMCA Factor shall be separately calculated and applied to the Company’s base rates schedules for residential, small commercial and commercial customers. The Company shall recover the annual expenditures projected for that year over a one-year period with the G-DSMCA Factor.

Kentucky (Tariff Sheet 30)
Applicable to Rate G-1 Sales Service, residential class only. Purpose The Company offers a low-income weatherization program in order to improve efficiency and household safety for eligible customers. The program does not rehabilitate homes and does not include home additions, paint, carpet or lead-based paint and asbestos abatements. The program may include, but not be limited to, the replacement of doors and windows, caulking, window stripping, installation of insulation, and/or the maintenance/replacement of natural gas appliances.

Mississippi (Energy Efficiency Rider Tariff)
The purpose of the Energy Efficiency Cost Recovery (EECR) Rider is to establish the EECR Rate(s) by which the Company will recover its energy efficiency Quick Start Plan program costs approved by the Mississippi Public Service Commission (“Commission”), including (1) the incremental energy efficiency program costs (“Incremental Program Costs”) and (2) lost contribution to fixed cost (“LCFC”) (collectively, the “Recoverable Costs”), all as described in Rule 29, “Conservation and Energy Efficiency Programs,” of the Commission’s Rules and Regulations Governing Public Utility Service, and as approved by the Commission in Docket 2010-AD-2 on July 11, 2013. Recovery of Incremental Program Costs is limited to the incremental costs which represent the direct program costs that are not already included in the then current rates of the Company.

Mid-Tex (Conservation and Energy Efficiency Rider)
Atmos Energy Corporation’s Mid-Tex Division provides a Conservation and Energy Efficiency program which offers assistance to residential and commercial customers to encourage reductions in energy consumption and lower energy utility bills. The proposal is one where Atmos Energy shareholders will fund a half of the allowable expenses incurred annually, with a customer rate component providing the remainder of the funding. The programs offered under Rate Schedule CEE will be consistent with similar conservation and energy efficiency programs offered by other gas utilities and may include, but not limited to residential and commercial customer rebates for high efficiency appliances and equipment, as well as a low income customer weatherization assistance program.

In fiscal year 2022, we inspected approximately 18% or 1,035 miles of the 5,684 total transmission miles.

Atmos Energy surveys the approximately 79,000 miles of our distribution and transmission pipelines at rates and frequencies that meet and often exceed state and federal guidelines. Monitoring frequency of pipelines is determined by federal and state pipeline safety codes, accepted industry standards and internal Atmos Energy practices and procedures.

Atmos Energy is committed to being the safest provider of natural gas. That’s why we invested $2.4 billion in 2022 to modernize our pipeline infrastructure.

Our system includes more than 79,000 miles of distribution and transmission pipelines, as well as smaller “service” pipelines that connect directly to homes and businesses. We bury much of our pipe underground, where it is away from weather and activities that commonly cause damage and leaks. Atmos Energy has always had processes and procedures in place to ensure the safety of our distribution and transmission network. During fiscal year 2022, we continued use of our Pipeline Safety Management System (PSMS), which formally documents our processes and procedures under a systematic and structured framework that builds on our established pipeline safety programs. PSMS was developed by the American Petroleum Institute and is a recommended practice for the pipeline industry. All Atmos Energy employees play a role in our PSMS through identification, prevention and remediation of operational safety risks.

Additionally, because third party damage represents one of the greatest threats to distribution systems, Atmos Energy administers a Damage Prevention Ambassador Program that empowers team members to identify and prevent potential digging accidents in the field. In fiscal year 2022, ambassadors performed 48,000 stops and distributed more than 23,000 pieces of literature to excavators and home owners, helping to prevent many potentially dangerous and costly accidents. Additionally, we operate an emergency hotline 24 hours a day, 7 days a week to respond and investigate reports of natural gas leaks.

Atmos Energy is committed to practices that reduce methane emissions from our transmission and distribution systems, including infrastructure renewal programs to replace aging steel and cast iron distribution pipelines. Atmos Energy utilizes a number of practices in its day-to-day operations to prevent or reduce methane emissions. Some of the practices include but are not limited to the following:

• Drawing down transmission line pressure when repairing or working on the pipelines to reduce natural gas released into the atmosphere.
• Rerouting gas to minimize or prevent venting or blowdowns.
• Installing pipeline stopples and bypass as necessary to maintain operations and minimize the extent of blowdown.
• Utilizing flares to combust methane instead of releasing methane into the atmosphere.