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Lloyd 816 Congress Avenue, Suite 1900 <br />Austin, Texas 78701 <br />Gosselink Telephone: (512) 322-5800 <br />~ Facsimile: (512) 472-0532 <br />ATTORNEYS AT LAW <br />www.iglawfirm.com <br />R4 <br />Ms. Doyle's Direct Line: (512) 322-5820 <br />EmaiL• kdoyle@Iglawfirm.com <br />MEMORANDUM <br />TO: Atmos City Steering Committee (ACSC) Members <br />FROM: Geoffrey Gay <br />Kristen Doyle <br />DATE: July 8, 2009 <br />RE: Atmos RRM Settlement - FINAL ACTION NEEDED BY AUGUST 31, 2009 <br />The ACSC Settlement Committee (Jay Doegey - Arlington, Danny Reed - Fort Worth, <br />Mark Israelson - Plano, Phil Boyd - Lewisville, Odis Dolton - Abilene), with the advice and <br />input of ACSC consultants and lawyers, has worked to resolve the Company's pending $20.2 <br />million Rate Review Mechanism ("RRM") rate increase request without the necessity of a <br />protracted and costly contested case proceeding. The attached tariff that reflects rates that will <br />increase Atmos' revenues by $2.6 million. The negotiated result reduces Atmos' requested rate <br />increase by more than 85%. The monthly bill impact for an average residential customers will <br />be $0.15. The ACSC Executive Committee recommends approval of the negotiated resolution <br />because it represents an outcome that is equal to or better than the outcome expected from a <br />lengthy contested case proceeding, and maintains cities' role as a regulator of natural gas rates. <br />Please schedule consideration of the Ordinance at your next available council <br />meeting. Final council action to approve the Ordinance must take place by August 31, <br />2009. To assist you, several documents are attached: <br />• An ordinance setting new rates. The approved Ordinance should include the <br />attached Tariffs ("Attachment A" to the Ordinance) and Proof of Revenues <br />("Attachment B") <br />• A model staff report <br />• A RRM fact sheet with customer impacts by class <br />Please contact Kristen (512/322-5820, kdoyle@lglawf'irm.com) immediately if your city <br />is unable to meet the August 31St deadline for final action. Once final action has been taken by <br />your city, please forward a copy of the Ordinance to Atmos Mid-Tex and to our paralegal, <br />Barbara Kimmell (fax number: 512/472-0532, bkimmell@lglawfirm.com). <br />Lloyd Gosselink Rochelle & Townsend, P.C. <br />- - _ 151 <br />