14 - Adoption of New Atmos Rate Review Mechanism

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F11,TMOS ENERGY CORPORATION MID-TEX DIVISIGN My W 111111 r i i NP111111 "M APPLICABLE TO: EFFECTIVE DATE. In the event that the regulatory authority and Company agree to a rate, adjustmient(s) that is different from the adjustment(s) requestedin the Company's filling, the Company shall file compliance tariffs consistent with the agreement. No action on the part of the regulatory authority shall be required to allow the rate adjustmient(s) to become effective on October 1. To the extent that the regulatory authority does not take action onl the Company's RRIVI filing by September 30, the rates proposed in the, Comipany's filing! shall be deemed approved effective October 1. Notwithstanding the preceding sentence, a regulatory authority may choose to take affirmative action to approve a rate adjustment under this tariff. In those instances where such approval cannot reasonably occur by September 30, the rates finally approved by the regulatory authority shall be deemed effective as of October 1. To defray the cost, if any, of regulatory authorities conducting a review of the Company"s annual RRM filing, the Company shall reimburse the regulatory authorities on a monthly basis for their reasonable expenses, incurred upon submission of invoices for such review. Any reimbursement contemplated' hereunder shall be deemed a reasonable and necessary operating expense of the Company in, the year in which the reimbursement is made. A regulatory authority seeking reimbursement under this provision shall submit its request for reimbursement to the Company no later than December 1 of the year in which the RRM filing is made and the Company shall reimburse regulatory authorities in accordance with, this provision on or before December 31 of the year the RRM filing is made. I I o the extent possible, the provisions of the Final Order shall be applied by the regulatory authority in determining whether to approve or disapprove of Company's proposed rate adjustment. This Rider RRM does not limit the legal rights and duties of a regulatory authority. Nothing herein shall abrogate the jurisdiction of the regulatory authority to initiate a rate proceedingi, at any time to review whether rates, charged are just anldl reasonable. Similarly, the Company retains its right to utilize the provisions of Texas Utilities Code, Chapter 104, Subchapter C to request a change in rates. The provisions of this Rider RRM are implemented in harmony with the Gas Utility Regulatory Art (Texas Utilities Code, Chapters 101-1015). The annual rate adjustment process set forth in this tariff shall' remain in effect during the pendency of any Statement of Intent rate filing.