8-KOther EventsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Corporate Update (Dec 9, 2011)

Filed December 9, 2011For Securities:ATO

Summary

Atmos Energy Corporation (ATO) has filed a Form 8-K on December 9, 2011, to report the resolution of an investigation by the Federal Energy Regulatory Commission (FERC). The investigation, which began in December 2007, concerned possible violations by Atmos Energy and its affiliates of FERC's posting and competitive bidding regulations related to released firm capacity on interstate natural gas pipelines. Under a stipulation and consent agreement approved by FERC on December 9, 2011, the Company will pay a total civil penalty of approximately $6.4 million to the U.S. Treasury and approximately $5.6 million in disgorgement to energy assistance programs. These payments are related to violations identified in the Company's non-utility operations. Atmos Energy has stated that this resolution did not materially impact its fiscal 2011 earnings, will not be charged to customers, and will not affect the services provided to its utility or non-utility customers. The company has also implemented a compliance plan to ensure future transactions adhere to FERC regulations.

Key Highlights

  • 1Resolution of FERC Investigation: Atmos Energy has reached an agreement with the FERC's Office of Enforcement to resolve an investigation into alleged violations of natural gas pipeline capacity release regulations.
  • 2Financial Impact of Resolution: The Company will pay a total of approximately $12 million ($6.4 million civil penalty and $5.6 million in disgorgement) to the U.S. Treasury and energy assistance programs.
  • 3Non-Material Earnings Impact: Atmos Energy stated that the resolution did not have a material adverse impact on its fiscal 2011 earnings.
  • 4No Customer Impact: None of the payments related to this agreement will be charged to any of the Company's customers, and services provided will not be affected.
  • 5Focus on Non-Utility Operations: The FERC's findings of violations were limited to the non-utility operations of Atmos Energy.
  • 6Compliance Enhancements: The Company has implemented a compliance plan to ensure future transactions meet FERC regulations for capacity release and related matters.
  • 7Cooperation with FERC: Atmos Energy fully cooperated with the FERC investigation and has taken steps to improve compliance.

Frequently Asked Questions

The investigation, which began in December 2007, focused on potential violations by Atmos Energy Corporation and its affiliates of FERC's regulations concerning the posting and competitive bidding of pre-arranged released firm capacity on interstate natural gas pipelines.

Atmos Energy will pay approximately $6.4 million as a civil penalty to the U.S. Treasury and approximately $5.6 million in disgorgement to energy assistance programs, totaling around $12 million.

No, the company explicitly stated that none of the payments will be charged to any of its customers, and the services provided to utility or non-utility customers will not be affected by this agreement.

The FERC's findings of violations were limited to the non-utility operations of the Company. The agreement will not affect the services Atmos Energy provides to any of its utility or non-utility customers.