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Staff warns of steep Atmos filing; multi-city negotiations planned to limit customer impacts
Summary
Assistant City Manager Matt Watson briefed council on Atmos' 2026 RRM filing (requested $291.1 million) and said the Atmos City steering committee will seek negotiated settlements this fall; staff estimated the GRIP-style impact could be about $14.94/month for a typical bill if unmitigated.
Matt Watson, assistant city manager, explained Garland's participation in the Atmos City steering committee and how the Rate Review Mechanism (RRM) provides a negotiated alternative to the GRIP process. Watson said the steering committee pools resources from about 180 cities to hire independent experts and negotiate settlements that reduce the impact of utility filings on customers.
Watson cautioned that Atmos Mid-Tex's 2026 filing requests were materially higher than prior years: "Atmos Mid Texas asked for revenue of 291,100,000 to cover their investments," he said, explaining that the GRIP-equivalent impact without a negotiated settlement would be roughly $14.94 per month in 2026 for an average residential customer. Staff said they will return in September with recommendations and a request to join the multi-city negotiations and noted Atmos-related rates typically go into effect on October 1 after settlement.
