The result of settlement with a city group and other intervenors, the rate increase is less than 50 percent of the company’s original request.
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A $30.2 million system-wide base rate increase for Atmos West Texas has been approved by the Texas Railroad Commission.
Adopted May 13, the increase is the result of a settlement with a cities group and other intervenors. It represents a more than 50 percent reduction from the company’s initial request.
The Background
In late October 2024, Atmos Energy filed a gas rate case for its West Texas Division. In the filing, Atmos West Texas sought to increase its system-wide base rates by approximately $66.1 million. Cities Served by Atmos West Texas intervened in the case and after multiple settlement discussions with the company, Railroad Commission staff, and other intervenors, a settlement was reached with the utility.
The key terms of the settlement, which the Railroad Commission approved on May 13, are as follows:
- Atmos West Texas will receive a $30.2 million system-wide base rate increase. This is a $35.9 million decrease from Atmos West Tex’s initial request.
- Atmos West Texas’ return on equity, which is a component of rate of return, or “profit” the utility is allowed to earn would be 9.8 percent on its invested capital. This is compared to the company’s original request of 10.85 percent,
- The residential customer charge will be $16.75 per month, which is a $8.25 decrease from the company’s proposed $25.00 customer charge.
- Additionally, the company has agreed to allocate 69.81 percent of its costs to residential customers. This is a decrease from the proposed residential customer cost allocation of 75.22 percent.
- Atmos West Tex will pay Cities Served by Atmos West Texas’ rate case expenses, and the Company will not seek reimbursement of Cities Served by Atmos West Texas’ rate case expenses in its rates.
More information can be found on the Railroad Commission website, under Case No. OS-24-00018879.