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ORDINANCE NO. 2016 -013 <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES <br />STEERING COMMITTEE ( "ACSC ") AND ATMOS ENERGY CORP., MID -TEX <br />DIVISION REGARDING THE COMPANY'S 2016 RATE REVIEW MECHANISM <br />FILINGS; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING <br />TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE <br />NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE <br />SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE <br />PUBLIC INTEREST; REQUIRING THE COMPANY TO REIMBURSE ACSC'S <br />REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS <br />ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF <br />THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; <br />DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS <br />ORDINANCE TO THE COMPANY AND THE ACSC'S 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 "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 similarly- situated cities served by Atmos Mid -Tex ( "ACSC Cities ") that have <br />joined together to facilitate the review of, and response to, natural gas issues affecting rates <br />charged in the Atmos Mid -Tex service area; and <br />WHEREAS, ACSC and the Company worked collaboratively to develop a new Rate <br />Review Mechanism ( "RRM ") tariff that allows for an expedited rate review process by ACSC <br />Cities as a substitute to the Gas Reliability Infrastructure Program ( "GRIP ") process <br />instituted by the Legislature, and that will establish rates for the ACSC Cities based on the <br />system -wide cost of serving the Atmos Mid -Tex Division; and <br />WHEREAS, on March 1, 2016, Atmos Mid -Tex filed its 2016 RRM rate request with <br />ACSC Cities; and <br />WHEREAS, ACSC coordinated its review of the Atmos Mid -Tex 2016 RRM filing <br />through its Executive Committee, assisted by ACSC's attorneys and consultants, to resolve <br />issues identified in the Company's RRM filing; and <br />WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, <br />recommend that ACSC Cities approve an increase in base rates for Atmos Mid -Tex of $29.9 <br />million on a system -wide basis; and <br />1 <br />