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2012-119s:Uegallour documentslordinances1121atmos-midtex-atm denial ordinance.docx ORDINANCE NO. 2012-119 AN ORDINANCE BY THE CITY OF DENTON, TEXAS, ("CITY") DENYING A R.ATE INCREASE REQUESTED BY ATMOS ENERGY CORPORATION ON OR ABOUT JANUARY 31, 2012; DETERMINING THAT THE MEETING COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Atmos Energy Corporation ("Atmos" or "Company") filed a Statement of Intent with the City on or about January 31, 2012 to change increase its revenue and change its rate schedules within the corporate limits of the City, specifically to increase its system-wide, annual revenue requirement by approximately $49.0 million which is an increase in base-rate exclusive of cost of gas of approximately 12%; and WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and under Chapter 104, § 103.001 et seq. of GURA has exclusive original jurisdiction over Atmos' rates, operations, and services within the municipality; and WHEREAS, the City approved a Resolution suspending Atmos' proposed effective date for its rate increase ninety days beyond Atmos' proposed effective date; and WHEREAS, on or about Apri125, 2012, Atmos extended its proposed effective date from March 6, 2012 to March 13, 2012, which has the effect of extending the statutory deadline from June 4, 2012 to June 11, 2012, subject to the City's right to continue a hearing in progress; and WHEREAS, the City has concluded that the rate increase proposed by Atmos is unreasonable and Atmos has not consented to appropriate adjustments to its proposed rate increase and that Atmos has failed to prove that is request is reasonable; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION l. The findings set out in the preamble are in all things approved and incorporated herein as if fully set forth. SECTION 2. The City denies the rate increase Atmos filed on or about January 31, 2012. SECTION 3. A copy of this Ordinance shall be sent to Atmos Energy Mid-Tex, care of Mr. David Park, Vice President Rates and Regulatory Affairs, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Avenue, Suite 1250, Austin, Texas 78701. SECTION 4. This meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 5 51. SECTION 5. This Ordinance shall become effective from and after its passage. s:llegal\our documentslordinances1121atmos-midtex-atm denial ordinance.docx PASSED AND APPROVED this the ��� da of 2012. Y ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR D A O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY �. BY: 2 of 2 A�BURROL7(GH�; l�((IAYOR