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Attachment A <br />following Settlement Terms as a means of fully resolving all issues between Atmos and the <br />ACSC Cities involving the 2014 RRM filing and 2015 RRM filing: <br />Settlement Terms <br />1. Upon the execution of this Settlement Agreement, the ACSC Cities will approve an <br />ordinance or resolution to approve the Settlement Agreement and implement the rates, <br />terms and conditions reflected in the tariffs attached to the Settlement Agreement as <br />Exhibit A. (Attachment A to the Ordinance ratifying the Agreement). Said tariffs <br />should allow Atmos to recover annually an additional $65.7 million in revenue over <br />the amount allowed under currently approved rates by implementation of rates shown <br />in the proof of revenues attached as Exhibit B. (Attachment B to the Ordinance <br />ratifying this Agreement). The uniform implementation of gas rates, terms and <br />conditions established by the Settlement Agreement shall be effective for bills <br />rendered on or after June 1, 2015. Consistent with the City's authority under Section <br />103.001 of the Texas Utilities Code, the Settlement Agreement represents a <br />comprehensive settlement of gas utility rate issues affecting the rates, operations and <br />services offered by Atmos within the municipal limits of the ACSC Cities arising from <br />Atmos' 2014 RRM filing and 2015 RRM filing. No refunds of charges billed to <br />customers by Atmos under the RRM in past periods shall be owed or owing. <br />2. In an effort to streamline the regulatory review process, Atmos and the ACSC Cities <br />have agreed to renew the Rate Review Mechanism ( "Rider RRM ") for a period <br />commencing with the Company's March 1, 2016 filing under this mechanism for the <br />calendar year 2015, effective June 1, 2016, and continuing thereafter until such time as <br />either the ACSC Cities issue an ordinance stating a desire to discontinue the operation <br />of the tariff or Atmos files a Statement of Intent. Atmos and the ACSC Cities further <br />agree that the RRM tariff shall remain in effect until such time as new, final rates are <br />established for Atmos. Upon approval of this Settlement Agreement by the ACSC <br />Cities, Atmos shall file an updated RRM Tariff with each city reflecting the provisions <br />of this agreement. <br />3. Atmos and the ACSC Cities agree that rate base as of December 31, 2014 in the <br />amount of $1,955,948,256 is just and reasonable and shall be recovered in rates. <br />4. Atmos and the ACSC Cities agree that a pension and other postemployment benefits <br />balance as of December 31, 2014 in the amount of $18,284,949 is just and reasonable <br />and shall be used as the beginning balance for purposes of determining pension and <br />other postemployment benefits to be recovered in the next RRM filing (Attachment D <br />to the Ordinance ratifying the Agreement). <br />5. With regard to the treatment of Atmos' Rule 8.209 regulatory asset under the RRM, <br />Atmos and the ACSC Cities agree to the following with respect to any pending and <br />future RRM filings: <br />a. the capital investment in the Rule 8.209 regulatory asset in the 2014 RRM filing <br />and 2015 RRM filing is reasonable and consistent with the requirements of Rule <br />8.209; <br />2 <br />