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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />PARIS, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL <br />RATE REVIEW MECHANISM ("RRM") AS A SUBSTITUTION FOR <br />THE ANNUAL INTERIM RATE ADJUSTMENT PROCESS DEFINED BY <br />SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND AS <br />NEGOTIATED BETWEEN ATMOS ENERGY CORP., MID-TEX <br />DIVISION ("ATMOS MID-'TEX" OR "COMPANY"') AND THE <br />STEERING COMMITTEE OF' CITIES SERVED BY ATMOS; <br />REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE <br />RATEMAKING EXPENSES; ADOPTING A SA'V'INGS CLAUSE; <br />DETERMINING THAT THIS ORDINANCE WAS PASSED IN <br />ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN <br />MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND <br />REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY <br />AND LEGAL COUNSEL FOR THE STEERING COMMITTEE. <br />WHEREAS, the City of Paris, Texas ("City") is a gas utility customer of Atmos Energy <br />Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company") and a regulatory authority with <br />an interest in the rates and charges of Atmos Mid -Tex; and <br />WHEREAS, the City and similarly -situated Mid -Tex municipalities created the <br />Steering Committee of Cities Served by Atmos to efficiently address all rate and service <br />matters associated with delivery of natural gas; and <br />WHEREAS, the Steering Committee formed an Executive Committee to direct legal <br />counsel and to recommend certain specific actions to all aligned Mid -Tex Cities through <br />resolution or ordinance; and <br />WHEREAS, pursuant to the terms of a November 2007 agreement between the <br />Steering Committee and Atmos Mid -Tex that settled the Company's interim rate filing <br />under Section 104.301 of the Texas utilities Code (a "GRIP" rate case), the Steering <br />Committee and the Company collaboratively developed a Rate Review Mechanism ("RRM"') <br />Tariff", ultimately authorised by the City in 200'8, that allows for an expedited rate review <br />process as a substitute for the GRIP process; and <br />WHEREAS, the City has kept some form of a RRM Tariff in place until 2017.when it <br />adopted an ordinance approving an RRM Tariff' filing settlement and specifically calling for <br />termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff <br />following the Railroad Commission's decision in a then -pending Atmos Texas Pipeline case <br />(GUD No. 10580)'; and <br />WHEREAS, the Steering, Committee's Executive Committee has recently approved a <br />settlement with the Company on the attached RRM Tariff that contains certain notable <br />