Cedar Park — The City Council on Jan. 9 held the first reading and public hearing on an ordinance that would deny a proposed rate increase from Atmos Energy affecting customers in the Midtex region.

Jacob Ward, assistant to the city manager, told council that Atmos filed a statement of intent to change its gas rates on Dec. 16, 2024. Ward said the filing would increase company revenues in the Midtex area by roughly $16 million — about a 7% increase including the cost of gas and about 11% excluding gas costs — and would raise the average residential bill by approximately $7.91 per month if allowed to take effect. He said that if the council took no further action on the second reading, the new rates would go into effect on Jan. 20, 2025.

The ordinance before council would deny Atmos’s requested increase and authorize Atmos Texas Municipalities’ (ATM) special counsel to represent Cedar Park’s interests before the Railroad Commission of Texas in the case. Ward said the ATM special counsel recommends that member cities deny the rate change as filed.

Council members discussed historical growth in non-gas charges and expressed concerns about the compound growth rate over recent years and the effect on households. Several members noted limits on the city’s authority and the role of the Railroad Commission and the ATM coalition in challenging rate filings. No members of the public signed up to speak during the public hearing.

Mayor and council did not adopt a final ordinance on Jan. 9; the council closed the public hearing and said it would take the item up at a subsequent meeting for further consideration.

Why it matters: If the council ultimately denies the filing and pursues representation through the ATM special counsel, the city aims to limit increases passed on to residential customers; if council takes no final action the company’s proposed rates would take effect on Jan. 20, 2025.

What’s next: The council will consider the ordinance again at a future meeting and may direct ATM special counsel to intervene at the Railroad Commission.