Resolution 2025-16 RESOLUTION NO. 2025-16(R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS,
APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES
STEERING COMMITTEE ("ACSC") AND ATMOS ENERGY CORP., MID-TEX
DIVISION REGARDING THE COMPANY'S 2025 RATE REVIEW MECHANISM
FILING; DECLARING EXISTING RATES TO BE UNREASONABLE;
ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT
WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET
BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND
REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN
ATTACHMENT ESTABLISHING A BENCHMARK FOR PENSIONS AND
RETIREE MEDICAL BENEFITS; REQUIRING THE COMPANY TO
REIMBURSE ACSC'S REASONABLE RATEMAKING EXPENSES;
DETERMINING THAT THIS RESOLUTION WAS PASSED IN ACCORDANCE
WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND
REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND
THE ACSC'S LEGAL COUNSEL.
WHEREAS, the City of Wylie, Texas ("City) is a gas utility customer of Atmos Energy Corp.,
Mid-Tex Division ("Atmos Mid-Tex" or "Company"), and a regulatory authority with an interest in the
rates, charges, and services of Atmos Mid-Tex; and
WHEREAS,the City is a member of the Atmos Cities Steering Committee ("ACSC"), a coalition
of similarly-situated cities served by Atmos Mid-Tex('`ACSC Cities")that have joined together to facilitate
the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service
area; and
WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review
Mechanism("RRM")tariff that allows for an expedited rate review process by ACSC Cities as a substitute
to the Gas Reliability Infrastructure Program ('GRIP") process instituted by the Legislature, and that will
establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division;
and
WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in 2018; and
WHEREAS, on about April 1, 2025, Atmos Mid-Tex filed its 2025 RRM rate request with ACSC
Cities based on a test year ending December 31, 2024; and
WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2025 RRM filing through its
Executive Committee, assisted by ACSC's attorneys and consultants, to resolve issues identified in the
Company's RRM filing; and
WHEREAS, the Executive Committee, as well as ACSC's counsel and consultants, recommend
that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of$205.6 million on a system-wide
basis with an Effective Date of October 1, 2025; and
WHEREAS, ACSC agrees that Atmos' plant-in-service is reasonable; and
Resolution No. 2025-16(R) Approving Negotiated Settlement Atmos Energy 2025 RRM Filing Page l of 3
WHEREAS,with the exception of approved plant-in-service, ACSC is not foreclosed from future
reasonableness evaluation of costs associated with incidents related to gas leaks; and
WHEREAS, the attached tariffs (Attachment A) implementing new rates are consistent with the
recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just,
reasonable, and in the public interest; and
WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical
benefits (Attachment 2); and
WHEREAS, the RPM Tariff contemplates reimbursement of ACSC's reasonable expenses
associated with RRM applications.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS:
SECTION l: That the findings set forth in this Resolution are hereby in all things approved.
SECTION 2: That, without prejudice to future litigation of any issue identified by ACSC, the
City Council finds that the settled amount of an increase in revenues of$205.6 million on a system-wide
basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and
services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Texas 2025 RRM
filing, is in the public interest,and is consistent with the City's authority under Section 103.001 of the Texas
Utilities Code.
SECTION 3: That despite finding Atmos Mid-Tex's plant-in-service to be reasonable, ACSC is
not foreclosed in future cases from evaluating the reasonableness of costs associated with incidents
involving leaks of natural gas.
SECTION 4: That the existing rates for natural gas service provided by Atmos Mid-Tex are
unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just and
reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $205.6 million on
a system-wide basis, over the amount allowed under currently approved rates. Such tariffs are hereby
adopted.
SECTION 5; That the ratemaking treatment for pensions and retiree medical benefits in Atmos
Mid-Tex's next RRM filing shall be as set forth on Attachment 2, attached hereto and incorporated herein.
SECTION 6: That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the
ACSC in processing the Company's 2025 RRM filing.
SECTION 7: That to the extent any resolution or ordinance previously adopted by the Council is
inconsistent with this Resolution, it is hereby repealed.
SECTION 8: That 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 9: That if any one or more sections or clauses of this Resolution is adjudged to be
unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions
of this Resolution, and the remaining provisions of the Resolution shall be interpreted as if the offending
section or clause never existed.
Resolution No. 2025-16(R)Approving Negotiated Settlement Atmos Energy 2025 RRM Filing Page 2 of 3
SECTION 10: That consistent with the City Ordinance that established the RRM process, this
Resolution shall become effective from and after its passage with rates authorized by attached tariffs to be
effective for bills rendered on or after October 1, 2025.
SECTION 11: That a copy of this Resolution shall be sent to Atmos Mid-Tex, care of Chris Felan,
Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LBJ
Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato, General Counsel to ACSC, at Lloyd
Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701.
DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas on this the
26th day of August, 2025.
/ = Matthew Porter, Mayor
ATTEST TO:
Stephanie Storm, City Secretary
Resolution No. 2025-16(R) Approving Negotiated Settlement Atmos Energy 2025 RRM Filing Page 3 of 3