Atmos Energy has applied to raise its rates in Dallas.
Residential customers could end up paying $6.10 more per month, while the average commercial customer could see an increase of $20.30 per month.
Atmos Energy recently filed a request with the City to increase rates by 6.36% in an effort to boost its revenue. If the City approves the request, it will go into effect on June 1.
City staff will review the request and are scheduled to present recommendations to the City Council on May 10.
Between October 2021 and September 2022, the Dallas-based company spent $180 million to replace certain infrastructure. In total, Atmos Energy claims it has replaced 64 miles of pipe and 3,200 steel service lines in the City of Dallas.
“This investment in system modernization also reduces our environmental impact,” Atmos Energy’s media relations department told The Dallas Express. “Our goal of reducing methane emissions from our distribution system mains and services by 50 percent from 2017 to 2035 is essential to our environmental commitment.”
“We look forward to working with the City of Dallas throughout this process as we do every year,” the company said.
Atmos noted in its request it wants to drive its annual revenue up by $20.6 million to help cover this expense.
“The rates we charge customers — coupled with investor and creditor capital — allow us to enhance the safety and reliability of our natural gas system through pipeline replacement and system modernization,” the company said in its request. “Current rates don’t allow us to recover our additional spending on safety and reliability.”
According to the request, the City Council reviews the rates charged to customers in the City of Dallas.
“In Texas, cities have original jurisdiction over natural gas rates,” it explained. “In order to recover costs after they’ve been spent, natural gas utilities must file directly with the cities for approval to adjust rates.”
“Atmos Energy continues its comprehensive pipe replacement program that prioritizes the replacement of segments based on relative risk by analyzing many factors, including pipe material,” the company continued.
This story comes as rising natural gas prices and cold winter weather are already burdening consumers with higher energy bills.
Moreover, Governor Abbott recently called for the Texas Railroad Commission to investigate Atmos after the company failed to supply hundreds of homes in North Texas with enough gas pressure to stay warm during freezing weather in late December, as The Dallas Express previously reported.