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ORDINANCE NO. 2008 -030 <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />( "CITY ") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS <br />CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., MID -TEX <br />DIVISION ( "ATMOS MID -TEX" OR "THE COMPANY ") REGARDING THE <br />COMPANY'S RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING <br />ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE <br />UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS <br />CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE <br />RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND <br />REASONABLE; APPROVING ATMOS' PROOF OF REVENUES; ADOPTING A <br />SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN <br />ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS <br />ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS <br />ORDINANCE TO THE COMPANY AND LEGAL COUNSEL. <br />WHEREAS, the City of Paris, Texas ( "City ") is a gas utility customer of Atmos Energy <br />Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "the Company "), and a regulatory authority with an <br />interest in the rates and charges of Atmos Mid -Tex; and <br />WHEREAS, the City is a member of the Atmos Cities Steering Committee ( "ACSC "), a <br />coalition of more than 150 similarly situated cities served by Atmos Mid -Tex that have joined <br />together to facilitate the review and response to natural gas issues affecting rates charged in the <br />Atmos Mid -Tex service area (such participating cities are referred to herein as "ACSC Cities "); <br />and <br />WHEREAS, Atmos and ACSC Cities have been in continuing disagreement, dispute, and <br />litigation over the implementation of GRIP surcharges pursuant to Section 104.301 of the Texas <br />Utilities Code; and <br />WHEREAS, as part of the negotiations to resolve Atmos' 2007 rate case, ACSC Cities and <br />the Company worked collaboratively to develop the Rate Review Mechanism ( "RRM ") tariff that <br />allows for an expedited rate review process controlled by Cities as a substitute to the current <br />GRIP process instituted by the Legislature; and <br />WHEREAS, the City took action earlier this year to approve a Settlement Agreement with <br />Atmos Mid -Tex resolving the Company's 2007 rate case and authorizing the RRM Tariff, and <br />WHEREAS, on or about April 14, 2008, Atmos Mid -Tex filed with the City its first <br />application pursuant to the RRM tariff to increase natural gas rates by approximately $33.5 <br />million, such increase to be effective in every municipality that has adopted the RRM tariff within <br />its Mid -Tex Division; and <br />WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a <br />Negotiation Committee made up of ACSC representatives and assisted by ACSC attorneys and <br />consultants to resolve issues identified by ACSC in the Company's RRM filing; and <br />Atmos RRM Ordinance 1 <br />