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DRAFT <br />ORDINANCE NO. <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, <br />TEXAS, ("CITY") APPROVING AND ADOPTING RATE SCHEDULE <br />"RRM — RATE REVIEW MECHANISM" FOR ATMOS ENERGY <br />CORPORATION, MID-TEX DIVISION TO BE IN FORCE IN THE CITY <br />FOR A PERIOD OF TIME AS SPECIFIED IN THE RATE SCHEDULE; <br />ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS <br />ORDINANCE WAS PASSED IN ACCORDANCE WITH THE <br />REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; <br />DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF <br />THIS ORDINANCE TO THE COMPANY AND ATMOS CITIES <br />STEERING COMMITTEE ("ACSC") 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 <br />an 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 cities, most of whom retain original jurisdiction over the rates and services of Atmos <br />Mid-Tex; and, <br />WHEREAS, in 2007 ACSC member cities and Atmos Mid-Tex collaboratively <br />developed the Rate Review Mechanism ("RRM") Tariff that allows for an expedited rate review <br />process controlled by cities as a substitute for the legislatively-constructed Gas Reliability <br />Infrastructure Program ("GRIP"); and, <br />WHEREAS, the GRIP mechanism does not permit the City to review rate increases, and <br />constitutes piecemeal ratemaking; and, <br />WHEREAS, the RRM process permits City review of requested rate increases and <br />provides for a holistic review of the true cost of service for Atmos Mid-Tex; and, <br />WHEREAS, the initial RRM tariff expired in 2011; and, <br />WHEREAS, ACSC's representatives have worked with Atmos Mid-Tex to negotiate a <br />renewal of the RRM process that avoids litigation and Railroad Commission filings; and, <br />WHEREAS, the ACSC's Executive Committee and ACSC's legal counsel recommend <br />ACSC members approve the negotiated new RRM tariff; and, <br />WHEREAS, the attached Rate Schedule "RRM — Rate Review Mechanism" ("RRM <br />Tarif�') provides for a reasonable expedited rate review process that is a substitute for, and is <br />superior to, the statutory GRIP process; and, <br />3562140. I 1 <br />_ _ 6 1 <br />