STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: May 28, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
An ordinance denying rates as requested by Atmos Energy Corp. Mid-Tex Division provided pursuant to its January 15, 2025 Dallas Annual Rate Review filing and setting rates as recommended by the City Manager - Financing: No cost consideration to the City
Body
BACKGROUND
Atmos Energy Corporation Mid-Tex Division (Atmos) provides natural gas utility service in Dallas in accordance with City franchise Ordinance No. 27793 and Title 3, Subtitle A Texas Utilities Code, Gas Utility Regulatory Act (GURA). On June 22, 2011, the City of Dallas approved Atmos' tariff Dallas Annual Rate Review (DARR), which provides a mechanism by which Atmos Energy Corp, Mid-Tex Division (Atmos) shall file for an annual review of its rates. On May 13, 2020, the City Council adopted an ordinance amending the DARR tariff to allow for an extension of time if a state of emergency is in effect within the City of Dallas during the review period.
On January 15, 2025, Atmos filed its rate increase request under the DARR tariff. In its filing, Atmos requested an increase in annual revenue of $31.4 million in base rates from within the City of Dallas. Atmos requested that the new rates become effective June 1, 2025.
The City contracted with Garrett Group LLC (Garrett) to assist City staff in reviewing the DARR filing. Garrett has expertise in reviewing gas rate cases and has assisted the City with the Atmos and Atmos Pipeline rate cases in the past. After reviewing the January 15, 2025 rate filing and supplemental information received from Atmos, Garrett determined that the requested rate increase was not justified.
City staff, and outside legal counsel met with Atmos on numerous occasions, both in person and by electronic virtual meetings/conference call t...
Click here for full text