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<br />ORDINANCE NO. 2006-025 <br /> <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, <br />TEXAS, DENYING THE REQUEST OF ATMOS ENERGY CORP., MID- TEX <br />DIVISION, FOR AN ANNUAL GAS RELIABILITY INFRASTRUCTURE <br />PROGRAM (GRIP) RATE INCREASE IN THIS MUNICIPALITY, AS A <br />PART OF THE COMPANY'S STATEWIDE GAS UTILITY DISTRIBUTION <br />SYSTEM; APPROVING COOPERATION WITH OTHER CITIES WITHIN <br />THE ATMOS ENERGY CORP., MID-TEX DIVISION DISTRIBUTION <br />SYSTEM AS PART OF THE ATMOS CITIES STEERING COMMITTEE <br />(ACSC); AUTHORIZING ACSC TO HIRE LEGAL AND CONSULTING <br />SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT <br />ANY NECESSARY LITIGATION; AUTHORIZING INTERVENTION AS <br />PART OF ACSC IN ANY APPEAL OF THE CITY'S ACTION TO THE <br />RAILROAD COMMISSION; PROVIDING A REQUIREMENT FOR A <br />PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; <br />FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS <br />PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND <br />PROVIDING FOR NOTICE OF THIS ORDINANCE TO ATMOS ENERGY <br />CORP., MID-TEX DIVISION; MAKING OTHER FINDINGS AND <br />PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING FOR AN <br />EFFECTIVE DATE. <br /> <br />WHEREAS, on or about March 30, 2006, Atmos Energy Corp., Mid-Tex Division, (the <br />"Company") filed with the City a request for an annual gas reliability infrastructure program <br />("GRIP") rate increase for customers on the Company's statewide gas utility system to be effective <br />May 30, 2006; and <br /> <br />WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's request <br />as it pertains to the distribution facilities located within the City, pursuant to Texas Utilities Code <br />SS 102.001 (b) and 103.001; and <br /> <br />WHEREAS, it is reasonable for the City to cooperate with other cities in a coalition of cities <br />in opposition to the Company's filing at the Railroad Commission ("Commission"), said coalition <br />being known as Atmos Cities Steering Committee ("ACSC"), in any appeal ofthe cities' actions to <br />the Commission; and <br /> <br />WHEREAS, the Gas Utility Regulatory Act ("GURA") grants local regulatory authorities <br />the right to intervene in rate proceedings filed at the Railroad Commission; and <br /> <br />WHEREAS, the Texas Utilities Code S 103.022 provides that costs incurred by the City in <br />rate-making activities are to be reimbursed by the regulated utility; and <br /> <br />WHEREAS, counsel for ACSC, upon review of the Company's filing and upon consultation <br />with various consultants, recommends finding that the Company's proposal is unjustified and <br />unreasonable; and <br />