2008-002-ORD-APPROVING SETTLEMENT AGREEMENT BETWEEN ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP

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ORDINANCE NO. 2008 -002 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ( "CITY ") APPROVING A SETTLEMENT AGREEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., MID -TEX DIVISION ( "ATMOS MID -TEX" OR "THE COMPANY ") REGARDING THE COMPANY'S STATEMENT OF INTENT TO CHANGE GAS RATES IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE SETTLEMENT AGREEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Paris, Texas ( "City ") is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "the Company "), and a regulatory authority with an interest in the rates and charges of Atmos Mid -Tex; and, WHEREAS, on or about September 20, 2007, Atmos Mid -Tex, pursuant to Gas Utility Regulatory Act § 104.102 filed with the City a Statement of Intent to increase system -wide gas rates by approximately $52 million, such increase to be effective in all municipalities exercising original jurisdiction within its Mid -Tex Division service area effective on October 25, 2007; and, WHEREAS, the City took action to suspend the October 25, 2007 Effective Date and to coordinate a response to Atmos' filing with more than 150 other similarly situated municipalities through the Atmos Cities Steering Committee ( "ACSC ") (such participating cities are referred to herein as "ACSC Cities "); and, WHEREAS, Atmos has agreed to extend the October 25, 2007, Effective Date such that the City's jurisdiction over this matter ends March 1, 2008; and. WHEREAS, the Railroad Commission of Texas ( "RRC" or the "Commission ") in GUD No. 9670, issued an Order approving new system -wide rates for customers of Atmos Energy's Mid -Tex Division in March 2007, which increased residential base rates by approximately $10 million annually; and, WHEREAS, ACSC and Atmos have each appealed the RRC's decision in Atmos' most recent system -wide rate increase as well as the decision rendered in GUD No. 9400 to the Travis County District Court; and,