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ORDINANCE NO. 2013 -019 <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 />Tariff") provides for a reasonable expedited rate review process that is a substitute for, and is <br />superior to, the statutory GRIP process; and, <br />3562140.1 1 <br />