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Pampa adopts resolution denying Atmos Energy rate filing as cities report settlement in progress
Summary
The City of Pampa adopted Resolution R25-009 denying Atmos Energy Corporation, West Texas Division’s proposed systemwide rate increase; city staff said the company had sought about $66 million and that a settlement reducing the request to roughly $30–36 million was reported during the meeting.
The City of Pampa City Commission voted Feb. 24 to adopt Resolution No. R25-009, denying the statement of intent by Atmos Energy Corporation, West Texas Division, to change rates within the city.
City legal counsel and staff briefed commissioners on the company’s October filing seeking a systemwide increase the presenter described as approximately $66 million total (an increase the presenter said would have raised residential bills by about $16.66 per month, roughly a 10% increase). The presenter said the city previously suspended the filing to give attorneys and consultants time to review the request and determined the requested increase could not be justified in the consultant’s opinion.
During the Feb. 24 meeting staff reported receiving an email indicating Atmos and West Texas cities had reached a settlement. Staff described the settlement in two different terms on the record: once as “about $30,000,000” and later as a reduction of $35,900,000 from the company’s original request. The presenter said the settlement would lower the company’s proposed return on equity from a requested 10.85% to 9.8%, reduce the residential customer charge to about $16.75 per month (from a proposed $25 customer surcharge), reallocate a smaller share of costs to residential customers (about 69.8% versus 75% in the original filing) and require the company to pay participating cities’ rate-case expenses. Because the city must act by March 21 to accept or deny a settlement (or else the filed rates could be approved by default), staff proceeded to present a denial resolution and transmit the city’s position to its attorneys.
The commission approved Resolution R25-009 by voice vote. Staff said a settlement agreement would follow quickly after the denial was transmitted to attorneys.
