Title
Approving a resolution denying the increase in rates proposed by Atmos Energy Corporation in its Mid-Tex division filing on December 16, 2024; authorizing intervention in proceedings related to Atmos Energy's application to increase rates; directing Atmos to reimburse rate case expenses; finding that the meeting complies with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date.
Summary
On about December 16, 2024, Atmos Energy Corporation (Atmos or Atmos Energy) filed a Statement of Intent to increase its base rate revenues for its Mid-Tex Division within certain cities, by approximately $16.73 million; this equates to an increase in annual revenue of about 7.08% including gas costs, and 11.51% excluding gas costs. This is Atmos’s first request to increase its base rates since 2018. Following the conclusion of its 2018 rate gas (Gas Utilities Docket No. 10742), Atmos has raised its rates by means of six Interim Rates Adjustment (“IRA”) filings, also known as “GRIP” filings.
Atmos proposes an effective date of January 20, 2025, for its change in rates. As is explained below, the proposed Resolution related to Atmos’s application to increase its base rate revenues, if adopted, denies the proposed increase in rates.
Crucially, on November 18, 2024, Atmos filed with the Railroad Commission of Texas (RRC or Commission) substantially the same proposal to increase rates. Because Atmos filed its application to increase rates with the RRC several weeks before it filed the same application with the city, and other similarly situated cities, the time line for the RRC to issue a decision regarding Atmos’s application with the RRC is such that by the time the City’s statutory deadline to make its decision regarding the application Atmos filed with the City, the RRC proceedings will be close to, if not at, their end. Thus, it is highly likely the RRC will make a decision on the merits of Atmos’s application before the City completes its review and makes its decision.
On average, Atmos’ proposed increase if approved as filed would result in an increase of about 14.05% in a residential customer’s bill excluding the cost of gas, and about 9.41% including the cost of gas.
Prior City Council Action
April 9, 2024, April 11, 2023, April 12, 2022, April 13, 2021 Council adopted resolutions regarding the application of Atmos Energy to increase rates under the Gas Reliability Infrastructure Program; suspending the effective date of the rate application for forty-five days; authorizing the City to continue to participate in a coalition of cities known as the "Atmos Texas Municipalities."
Deadline for City Council Action
January 20, 2024
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: ________
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required __ Date Completed: ___________
Supporting documents attached:
Atmos MidTex Denial Summary
Atmos MidTex Denial Resolution
Recommended Action
Approve the resolution denying the increase in rates proposed by Atmos Energy Corporation in its Mid-Tex division filing.