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<br />MEMO <br /> <br />To: <br /> <br />Atmos Energy Cities <br /> <br />From: <br /> <br />Jay Doegey, City Attorney <br /> <br />Date: <br /> <br />March 2, 2006 <br /> <br />Subject: <br /> <br />Creation of a Gas Standing Steering Committee for Cities Served by Atmos <br />Energy <br /> <br />The purpose of this memo is to request your city's participation with other Atmos cities <br />in current and upcoming gas utility regulatory and rate making cases before the Railroad <br />Commission of Texas or other court. Several issues currently being addressed include the <br />annual gas reliability infrastructure program- GRIP 1 (2003), GRIP 2 (2004), Gas Cost Review <br />(GUD 9530), Atmos Mid Tex Rate Case, and the cities challenge of the GRIP Rule. More <br />filings are anticipated. <br /> <br />The original Gas Cities Steering Committee was formed several years ago in response to <br />a gas gate rate filing by Lone Star Gas Company (TXU Gas and Atmos Energy's predecessor). <br />Over the past six years, the gas distribution systems have been consolidated and the gas company <br />has filed rate cases annually. With the passage of the GRIP statute, this pattern is likely to <br />continue. The current Steering Committee has recommended the establishment of a more formal <br />organizational structure that will enable cities to respond more quickly to these frequent gas rate <br />filings. The Gas Standing Steering Committee organization will work similar to the Electric <br />Standing Steering Committee. The Steering Committee will have authority to act for members <br />with each member retaining the ability to opt out of any proposed rate case action. <br /> <br />A model resolution and participation agreement are attached. A participation fee of 5 <br />cents per capita is being assessed to cover the costs of lawyers and consultants in representing <br />the Atmos cities in current and upcoming gas utility regulatory and rate making cases to preserve <br />the cities' regulatory authority and reduce gas costs. Cities that have previously paid this amount <br />to participate in the original cities gas rate case fund are already credited with having made this <br />payment. (See attached list.) Expenses incurred are reimbursable by the regulated utility. <br /> <br />Be sure to send in your participation fee so that the Gas Standing Steering Committee can <br />effectively represent your city in pending and future Atmos Energy Corporation regulatory and <br />rate related matters. <br /> <br />Attachments <br />