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Colleyville staff recommends approval of negotiated Atmos Energy rate settlement; average gas bill to rise under agreement
Summary
Staff presented a negotiated settlement with Atmos Energy under the RRM process that would limit a system-wide rate increase and yield an estimated average residential increase of $7.83 per month; item was presented as a first reading.
City staff and the Atmos City Steering Committee (ACSC) told the Colleyville City Council that a negotiated settlement with Atmos Energy Corp., Mid-Tex Division, would lower an initial company request for a system-wide rate increase.
Under the RRM (Rate Review Mechanism) process used by the ACSC, the company initially requested a system-wide increase the committee described as $245 million; application of the committee’s RRM standards reduced the request and ACSC consultants recommended a lower amount. Negotiations between ACSC representatives and Atmos attorneys yielded a settlement of approximately $205 million, city staff said. The settlement would take effect Oct. 1 and, according to staff, would raise the average residential gas customer bill by about $7.83 per month; average commercial impacts were estimated at $25.73 per month.
Staff recommended council approval of the negotiated settlement as the ACSC’s best option to limit increases short of a contested Railroad Commission review, which the committee cautioned historically favors the utility. Assistant City Manager Adrienne Lothree summarized the RRM process and noted the GRIP alternative under state law would remove cities’ ability to negotiate.
Council heard the item as a first reading and held a public hearing; no residents addressed the item and no action was taken. Council members expressed frustration at the size of the company’s request and thanked staff and ACSC participants for pursuing the negotiated outcome.
If the council ultimately rejects the settlement, Atmos could appeal to the Texas Railroad Commission; staff said the negotiated agreement was the most protective option available to municipal ratepayers under current state procedures.
