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Terrell council approves Atmos negotiated settlement on gas rates
Summary
Council adopted Resolution No. 2253 approving a negotiated settlement reached by the Atmos City Steering Committee and Atmos Energy Mid-Tex, which staff said lowers originally proposed rate increases and will be implemented by adopting tariffs set out in the settlement.
The Terrell City Council approved Resolution No. 2253 on Aug. 26 to accept a negotiated settlement between the Atmos City Steering Committee (ACSC) and Atmos Energy Mid-Tex regarding the company's 2025 rate review mechanism filing.
City staff explained that ACSC — of which Terrell is a member — negotiated lower rates than Atmos initially proposed and that the resolution declares the prior rates unreasonable and adopts the attached settlement tariffs as just and reasonable. The resolution requires the company to reimburse ACSC—or reasonable rate-making expenses and establishes a benchmark for pensions and retiree medical benefits as part of the settlement agreement.
Council member questions focused on the meaning of "unreasonable" rates in the resolution language; staff confirmed the steering committee negotiated on the city's behalf to secure a lower final rate. Ronnie Velasquez moved to approve Resolution No. 2253 and Phil Robinson seconded; the council adopted the resolution by voice vote.
The resolution was read on second reading and staff said it satisfies Open Meetings Act requirements and will be delivered to Atmos and ACSC counsel as required by the resolution language.
