2009-028-ORD APPROVING A RESOLUTION WITH ATMOS ENERGY

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WHEREAS, on or about March 6, 2009, Atmos Mid -Tex filed with the City its second application pursuant to the RRM tariff to increase natural gas rates by approximately $20.2 million, such increase to be effective in every municipality that has adopted the RRM tariff within its Mid -Tex Division; and WHEREAS, ACSC Cities coordinated its review of Atmos' RRM filing and designated a Settlement Committee made up of ACSC representatives and assisted by ACSC attorneys and consultants to resolve issues identified by ACSC in the Company's RRM filing; and WHEREAS, the Company has filed evidence that existing rates are unreasonable and should be changed; and WHEREAS, independent analysis by ACSC's rate expert concluded that Atmos Mid - Tex is able to justify a slight rate increase over current rates; and WHEREAS, the Steering Committee has advocated in other proceedings that Atmos Mid -Tex hedge natural gas futures in order to mitigate the volatility of natural gas prices, which are a flow through to customers; and WHEREAS, the ACSC Executive Committee, as well as ACSC lawyers and consultants, recommend that ACSC members approve the attached rate tariffs ( "Attachment A" to this Ordinance), which will increase the Company's revenue requirement by $2.6 million; and WHEREAS, the attached tariffs implementing new rates and Atmos' Proof of Revenues ( "Attachment B" to this Ordinance) are consistent with the negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest; and WHEREAS, it is the intention of the parties that if the City determines any rates, revenues, terms and conditions, or benefits resulting from a Final Order or subsequent negotiated settlement approved in any proceeding addressing the issues raised in the Company's RRM filing would be more beneficial to the City than the terms of the attached tariff, then the more favorable rates, revenues, terms and conditions, or benefits shall additionally accrue to the City; and WHEREAS, the negotiated resolution of the Company's RRM filing and the resulting rates are, as a whole, in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That the City Council finds that the existing rates for natural gas service provided by Atmos Mid -Tex are unreasonable and new tariffs and Atmos' Proof of Revenues, which are attached hereto and incorporated herein as Attachments A and B, are just and reasonable and are hereby adopted. Atmos RRM Ordinance