Title
Consider a Resolution denying Atmos Energy Corporation’s increase in natural gas rates proposed in its MidTex Division filing on about December 16, 2024.
Body
Atmos Energy Corporation (“Atmos” or “Company”) filed a Statement of Intent with the City on about December 16, 2024, to change its rate schedules within the corporate limits of this municipality, specifically to increase its annual revenue requirement by approximately $16.73 million, which represents an increase in base rates of about 11.51%, excluding the cost of gas, and about 7.08% including the cost of gas.
Atmos’s rate application is the Company’s first general rate case since about 2018, and follows six consecutive annual increases in rates pursuant to the Interim Rate Adjustment (“IRA”) mechanism, also known as “GRIP” filings; and Atmos proposed January 20, 2025, as the effective date for its requested increase in rates.
The City is a member of the coalition of cities known as Atmos Texas Municipalities (ATM). ATM is comprised of about 50 cities and has been represented by the law firm of Herrera Law & Associates, PLLC (through Mr. Alfred R. Herrera) to assist in reviewing applications to change rates submitted by Atmos MidTex Division.
The City’s ability to review and effectuate a change in Atmos’s requested increase, through partnership in the ATM coalition is limited. Nonetheless, to allow for a limited review of Atmos’s rate application, it is recommended that the City suspend Atmos’s proposed effective date of January 20, 2025 for ninety days as allowed by state law, so that the City may evaluate whether data and calculations in Atmos’s rate application are correctly done, and whether Atmos’s application otherwise conforms to the requirements of the GRIP statute. Approval of this resolution will suspend the proposed effective date until April 20, 2025.