Title
Resolution responding to the application of Atmos Energy Corporation - MidTex Division to increase rates under the Gas Reliability Infrastructure Program (GRIP), suspending the effective date of the rate application for 45 days, authorizing the City to continue to participate in a coalition of cities known as the "Atmos Texas Municipalities."
Summary
The City is a member of the Atmos Texas Municipalities (“ATM”). The ATM group was organized by a number of municipalities served by Atmos Energy Corporation - MidTex Division (“Atmos Energy”) and has been represented by the law firm of Herrera Law & Associates, PLLC to assist in reviewing applications to change rates submitted by Atmos Energy.
On or about February 20, 2026, Atmos Energy Corporation - MidTex Division (“Atmos Energy”) filed for an increase in gas utility rates under the Gas Reliability Infrastructure Program (“GRIP”), which if approved, results in an increase in the monthly customer charges of $10.59 per bill for residential sales, $38.65 per bill for commercial sales, and $658.18 per bill for industrial and transportation. The effective date proposed by Atmos Energy is April 21, 2026 but a suspension by the City will mean that the rate increase cannot go into effect prior to June 5, 2026. It is necessary to suspend the effective date for the increase in rates for forty-five days, so that the City can assure itself that the data and calculations in Atmos Energy’s rate application are correctly done and are in conformity with section 104.301 of the Gas Utility Regulatory Act.
To the extent Atmos Energy’s application to increase rates under section 104.301 of the Gas Utility Regulatory Act (“GURA”) is considered a ratemaking proceeding Atmos Energy is ordered to reimburse the City's reasonable rate case expenses incurred in response to Atmos Energy’s rate increase application within 30 days of receipt of invoices for such expenses to the extent allowed by law, or pursuant to agreement between Atmos and ATM.
Prior City Council Action
N/A
Deadline for City Council Action
April 21, 2026
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: _N/A___________
Budgeted Amount: _N/A___________
Amount: _N/A_______
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: 3/16/2026
Supporting documents attached:
Atmos Rate Suspension Resolution
Recommended Action
Approve the resolution suspending the effective date of the Atmos rate application.