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03-06-08-Resolution-Determining the current rates for Atmos Energy unreasonable-03/03/2008RESOLUTION # R 03-06-08 A RESOLUTION OF THE CITY OF SANGER DETERMINING THE CURRENT RATES OF THE ATMOS ENERGY CORPORATION, MID-TEX DIVISION TO BE UNJUST AND UNREASONABLE; PROVIDING FOR A REASONABLE NOTICE AND HEARING; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE WHEREAS, Atmos Energy Corporation —Mid-Tex Division ("Atmos") filed a Statement of Intent with the City of Sanger, Texas ("City") on September 20, 2007 to increase its system -wide, annual revenue requirement, by approximately $51.9 million, and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GTT? A") and under § 103.001 of GURA has exclusive original jurisdiction over Atmos' rates, operations, and services of a gas utility within the municipality; and WHEREAS, the City has, by previous ordinance or resolution, denied the requested rate increase, authorized participation in a coalition of cities known as Atmos Texas Municipalities ("ATM") and authorized the hiring of lawyers and rate experts; WHEREAS, Atmos has appealed the previous ordinance or resolution to the Railroad Commission of Texas, which has docketed the appeal along with other appeals as Gas Utilities Docket No. 9762; and WHEREAS, ATM has conducted extensive discovery upon Atmos and has engaged in extensive negotiations regarding the appropriate rates and rate structure for Atmos; and WHEREAS, Atmos and ATM have entered into a settlement agreement resolving all disputes regarding the appropriate rates, terms and conditions for Atmos, and WHEREAS, Atmos and ATM have determined that the best method to implement such settlement agreement is to have it approved by each ATM city; and WHEREAS, in order for City to examine the settlement agreement, it must reestablish its original jurisdiction over the rates of Atmos; and WHEREAS, the Gas Utilities Regulatory Act authorizes municipalities exercising original jurisdiction over gas utilities to issue a Show Cause as to their rates, terms and conditions, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS THAT: Section 1. That the statements set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. Pursuant to Utilities Code Section 104.151, the City finds that the existing rates, terms and conditions of Atmos are unreasonable and determines that Atmos should Show Cause why such rates, terms and conditions should not be changed. Sectionlight of the fact that a settlement agreement has been reached between Atmos and ATM resolving all issues, it is reasonable to proceed to a hearing on the settlement agreement without additional notice to Atmos and it is reasonable to hold such hearing at the same city council meeting as the meeting at which this resolution is adopted. Section 4. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 5. This resolution shall become effective from and after its passage. PASSED AND APPROVED this d day of March 2008. ti ♦ t r , oe Hi 's, r i s r° rAcaasc..-.