Levelland council approves ordinance denying Atmos Energy rate increase on first reading

Levelland’s City Council voted unanimously March 3 to advance Ordinance 1091 on first reading, rejecting Atmos Energy Corp., West Texas Division’s October 25, 2024 statement of intent to increase system-wide base rates by roughly $66.1 million.

The ordinance says the company’s filing would raise incorporated-area revenues by about $26.9 million — an approximate 20.76% increase including gas costs — and that the average residential customer could pay about $16.66 more per month if the full request were approved. Council cited consultant reviews that identified numerous unreasonable expenses in Atmos’s filing and approved a recommendation to deny the rate change. The ordinance also finds that the city’s reasonable rate-case expenses shall be reimbursed by the company.

According to the staff memo presented to the Council, Atmos agreed to an effective date of December 21, 2024; cities that deny the filing must act before March 21, 2025 to preserve their positions before the Railroad Commission. The ordinance directs city staff to provide notice of the Council’s action to Atmos and to the Cities’ legal counsel. Motion by Councilmember Jaime McCabe; seconded by Mayor Pro Tem Michael Stueart. Motion carried unanimously on first reading.

The denial will allow Atmos 30 days to appeal the city’s action to the Railroad Commission, where the company’s filing and any appeals will be consolidated with other pending dockets.

Next steps: the Council passed the item on first reading; a subsequent reading or administrative follow-up was not specified in the meeting minutes.