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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 <br />resolve issues identified in the Company's RRM filing; and <br />WHEREAS, the Executive Committee, as well as ACSC's counsel and <br />consultants, recommend that ACSC Cities approve an increase in base rates for Atmos <br />Mid -Tex of $260.5 million on a system -wide basis with an Effective Date of October 1, <br />2026; 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 <br />foreclosed from future reasonableness evaluation of costs associated with incidents <br />related to gas leaks; and <br />WHEREAS, the attached tariffs (Attachment 1) implementing new rates are <br />consistentwith the recommendation of the ACSC Executive Committee, are agreed to by <br />the Company, and arejust, reasonable, and in the public interest; and <br />WHEREAS, the settlement agreement sets a new benchmark for pensions and <br />retiree medical benefits (Attachment 2); and <br />WHEREAS, the RRM Tariff contemplates reimbursement of ACSC's reasonable <br />expenses associated with RRM applications. <br />NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY <br />OF PARIS, TEXAS: <br />Section 1. That the findings set forth in this Ordinance are hereby in all things <br />approved. <br />Section 2. That, without prejudice to future litigation of any issue identified by <br />ACSC, the City Council findsthatthe settled amou ntof an increase in revenues of $260.5 <br />million on a system -wide basis represents a comprehensive settlement of gas utility rate <br />issues affecting the rates, operations, and services offered by Atmos Mid -Tex within the <br />municipal limits arising from Atmos Mid-Tex's 2026 RRM filing, is in the public interest, <br />and is consistentwith the City's authority under Section 103.001 of the Texas Utilities <br />Code. <br />Section 3. That despite finding Atmos Mid-Tex's plant -in-service to be <br />reasonable, ACSC is not foreclosed in future cases from evaluating the reasonableness <br />of costs associated with incidents involving leaks of natural gas. <br />Section 4. That the existing rates for natural gas service provided by Atmos Mid - <br />Tex are unreasonable. The new tariffs attached hereto and incorporated herein as <br />Attachment 1, are just and reasonable, and are designed to allow Atmos Mid -Tex to <br />N <br />