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<br />handled in the same manner as in other rate cases: TXU reimbursed the cities' expenses and <br />they were ultimately surcharged to customers. The savings achieved as a result of the settlement <br />of that docket greatly exceeded the cities' costs surcharged to customers. <br /> <br />We made an effort recently to negotiate a resolution of the gas prudence docket, as well <br />as other outstanding regulatory issues (e.g. rate case expenses from GUD No. 9400) with Atmos. <br />Since Atmos rejected that settlement offer, it is appropriate that Cities intervene in Gas Utilities <br />Docket No. 9530 to evaluate the possibility of refunds attributable to excessive gas cost <br />purchases. <br /> <br />Attached is a form resolution to be used to authorize intervention by interested cities. <br />Please forward any adopted resolutions as soon as possible so that interventions can be filed with <br />the Commission. The examiners have established a December 10, 2004, deadline; however, later <br />interventions can be filed as long as they do not cause further delay. We have filed an <br />intervention on behalf of the Steering Committee and the City of Arlington. Interventions for <br />other individual cities should be filed as soon as possible. <br /> <br />Please contact us if you have any questions about this docket or city participation. <br /> <br />Betsy Todd <br />(512) 322-5831 <br />(512) 472-0532 FAX <br />btodd@lglawfirm.com <br /> <br />Geoffrey Gay <br />(512) 322-5875 <br />(512) 472-0532 FAX <br />ggay@lglawfmn.com <br /> <br />1668\11\rnrnoO41209 <br /> <br />2 <br />