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Legislature, and that will establish rates for the ACSC Cities based on the system -wide cost of <br />serving the Atmos Mid -Tex Division; and <br />WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in <br />2018; and <br />WHEREAS, on about April 1, 2025, Atmos Mid -Tex filed its 2025 RRM rate request with <br />ACSC Cities based on a test year ending December 31, 2024; and <br />WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2025 RRM filing <br />through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues <br />identified in the Company's RRM filing; and <br />WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, <br />recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $205.6 <br />million on a system -wide basis with an Effective Date of October 1, 2025; and <br />WHEREAS, ACSC agrees that Atmos' plant -in-service is reasonable; and <br />WHEREAS, with the exception of approved plant -in-service, ACSC is not foreclosed <br />from future reasonableness evaluation of costs associated with incidents related to gas leaks; and <br />WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent <br />with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and <br />are just, reasonable, and in the public interest; and <br />WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree <br />medical benefits (Attachment 2); and <br />WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable <br />expenses associated with RRM applications. <br />2 <br />