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Commerce denies Atmos Energy rate increase, authorizes intervention in PUC proceedings

2138805 · January 21, 2025

Summary

The council adopted a resolution rejecting the rate increase proposed by Atmos Energy Corporation, authorized special counsel to represent the city, and directed the utility to reimburse the city's rate-case expenses; the city joins other municipalities through Texas Coalition for Affordable Power.

The Commerce City Council approved a resolution denying the rate increase proposed by Atmos Energy Corporation and authorized city participation in matters at the Public Utility Commission of Texas (PUC).

City Manager Mister Lisenby explained that utilities operating in city rights-of-way have franchise agreements with the city and that municipalities can contest proposed rate increases at the PUC. The city participates in a joint municipal effort through the Texas Coalition for Affordable Power (TCAP) to consolidate cities' voices in rate proceedings. "Typically, the average citizen doesn't have a voice in the affairs of these large utility companies," Lisenby said; he explained that cities may file resolutions rejecting proposed increases so the PUC and utilities negotiate adjustments.

The resolution directs the city to reject Atmos Energy's proposed adjustment, authorizes intervention in the PUC proceedings, authorizes special counsel to represent the city, and requests that Atmos reimburse the city for rate-case expenses. The council approved the resolution by voice vote.

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