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Item 4C AudiorITY Or SOUTHLAKE Background • Member of the Atmos Cities Steering Committee ( "ACSC ") • Atmos filed application to increase natural gas rates — $15.7 million rate increase E Settlement • Reduced Atmos requested increase — $6.6 million • New rates effective September 2011 — $0.31 per month residential — $0.88 per month commercial • Will eliminate potential rate case legal fees • ACSC Settlement Committee recommends approval 3 SOUTHLAKE 0