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City Council denies Atmos Energy rate proposal, joins municipal coalition to contest increases
Summary
Austin City Council voted to deny Atmos Energy's residential rate increase proposal and to join other cities in a consolidated response led by municipal counsel, citing high proposed increases and heavy residential impact.
Austin City Council voted Jan. 30 to deny a proposed rate increase from Atmos Energy that would have raised residential natural-gas costs in the utility's Mid-Tex division and to authorize the city to join a consolidated municipal response represented by Herrera Law and Associates.
City staff outlined the company's filing and recommended denial. The filing proposed shifts that would place all increases on residential customers in Austin's city limits; the presentation said 10,700 residential customers in Austin would have been affected. Staff noted that 37 of 46 Mid-Tex cities had already denied the proposed increases.
Paul Robbins, vice chair of the city's Resource Management Commission, told council the company's rate structure was highly regressive and penalized customers who conserved energy. Robbins said Atmos residential bills had risen substantially in recent years and urged council to deny the proposed changes and to consider a broader municipal role in gas-rate policy.
On staff recommendation, the council voted to deny the rate filing and to authorize legal and negotiating participation with the Atmos Texas Municipalities Coalition. The council also asked Atmos to reimburse municipal rate-case expenses.
Why it matters: Utilities decisions affect household budgets and conservation incentives. Municipal consolidation allows cities to pool legal resources and technical expertise in rate proceedings before regulators and in settlement discussions.
What to watch next: The city will coordinate with the municipal coalition and Herrera Law in negotiations and possible proceedings at the Railroad Commission and related forums. Staff said the denial will be consolidated with other cities' actions to streamline legal and technical review.
