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ORDINANCE 2026-037 <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />PARIS, TEXAS, APPROVING A NEGOTIATED SETTLEMENT <br />BETWEEN THE ATMOS CITIES STEERING COMMITTEE <br />("ACSC") AND ATMOS ENERGY CORP., MID-TEX DIVISION <br />REGARDING THE COMPANY'S 2026 RATE REVIEW <br />MECHANISM FILING; DECLARING EXISTING RATES TO BE <br />UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE <br />ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED <br />SETTLEMENT; FINDING THE RATES TO BE SET BY THE <br />ATTACHED SETTLEMENT TARIFFS TO BE JUST AND <br />REASONABLE AND IN THE PUBLIC INTEREST; APPROVING <br />AN ATTACHMENT ESTABLISHING A BENCHMARK FOR <br />PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING <br />THE COMPANY TO REIMBURSE ACSC'S REASONABLE <br />RATEMAKING EXPENSES; DETERMINING THAT THIS <br />ORDINANCE WAS PASSED IN ACCORDANCE WITH THE <br />REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; <br />ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE <br />DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO <br />THE COMPANY AND THE ACSC'S LEGAL COUNSEL. <br />WHEREAS, the City of Paris, Texas ("City") is a gas utility customer of Atmos <br />Energy Corp., Mid -Tex Division ("Atmos Mid -Tex" or "Company"), and a regulatory <br />authority with an interest in the rates, charges, and services of Atmos Mid -Tex; and <br />WHEREAS, the City is a member of the Atmos Cities Steering Committee <br />("ACSC"), a coalition of similarly -situated cities served by Atmos Mid -Tex ("ACSC <br />Cities") that have joined together to facilitate the review of, and response to, natural gas <br />issues affecting rates charged in the Atmos Mid -Tex service area; and <br />WHEREAS, ACSC and the Company worked collaboratively to develop a Rate <br />Review Mechanism ("RRM") tariff that allows for an expedited rate review process by <br />ACSC Cities as a substitute to the Gas Reliability Infrastructure Program ("GRIP") <br />process instituted by the Legislature, and thatwill establish rates forthe ACSC Cities <br />based on the system -wide cost of 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, 2026 Atmos Mid -Tex filed its 2026 RRM rate <br />requestwith ACSC Cities based on a testyearending December 31, 2025; and <br />