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<br />WHEREAS, the Company has publicly stated that it will receive substantial profit in 2005 <br />and that its expenses are substantially below those on which the GUD No. 9400 rates it is charging <br />were based; and <br /> <br />WHEREAS, the Company's GRIP request fails to account for growth in numbers of <br />customers, thereby undercounting the revenues it will receive from its proposed GRIP rate increase; <br />and <br /> <br />WHEREAS, the Company's GRIP request fails to recognize that GUD No. 9400 rates <br />included profit based on TXU Corporation's capital structure rather than Atmos Energy Corp.'s <br />current capital structure, which justifies a lower rate of return; and <br /> <br />WHEREAS, under the provisions of ~ 104.301 of GURA, the interim rate adjustment is <br />subject to true-up in a general rate case filed within five years of the effective date of the interim rate <br />surcharge; and <br /> <br />WHEREAS, the Company has, on May 31, 2006, filed a Statement ofIntent to increase its <br />distribution rates on a system-wide basis, using calendar year ending December 31,2005, as its test <br />year; and <br /> <br />WHEREAS, the capital investment made by Atmos during 2005 will be reviewed in the <br />Statement ofIntent filing, making the 2005 GRIP filing superfluous, duplicative, and unnecessary; <br />NOW, THEREFORE, <br /> <br />BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, <br />TEXAS: <br /> <br />Section 1. That the findings set out in the preamble to this ordinance are hereby in all things <br />approved. <br /> <br />Section 2. That the Company's GRIP rate increase request is found to be unreasonable, <br />superfluous, duplicative, and unnecessary, and is therefore denied in all respects. <br /> <br />Section 3. That the City is authorized to cooperate with other Cities within the Company's <br />Distribution System that have formed ACSC to hire and direct legal counsel and consultants, <br />negotiate with the Company, make recommendations to the City regarding reasonable rates, and to <br />direct any necessary litigation associated with an appeal of a rate ordinance and the rate case filed <br />at the Commission. <br /> <br />Section 4. That the costs incurred by the City in reviewing the Company's GRIP request <br />shall be promptly reimbursed by the Company. <br /> <br />Section 5. That the City is authorized to intervene in any appeal of the City's action filed <br />at the Commission and any related litigation, and to participate in any such appeal or litigation as <br />a member of ACSC. <br />