Settlement Overview
The city council will receive a report and take action on a resolution approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division. The agreement addresses the company's 2026 rate review mechanism filing and declares existing rates unreasonable.
Council members will also consider adopting tariffs that reflect rate adjustments consistent with the negotiated terms. The resolution requires council approval to finalize the arrangement.
Financial Impact Analysis
Atmos Energy initially claimed entitlement to additional system-wide revenues of $291.1 million based on a test year ending December 31, 2025. Consultants for the steering committee determined the actual deficiency should be $253.4 million. The parties ultimately agreed to a settlement figure of $260.5 million, which covers administrative expenses.
Average residential utility bills will increase by $13.37 per month, representing a 14.15 percent rise. Commercial customers will see an average monthly increase of $44.82, or 9.90 percent.
