Dallas City Council Rejects Atmos' Bid For Rate Increase

Natural gas
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DALLAS (1080 KRLD) - The Dallas City Council was nearly unanimous in rejecting Atmos Energy's request to increase rates in the city.

Atmos was asking for a rate increase that would cost the average residential customer $3.05 a month.

The Dallas City Council voted 13-1 to block the increase.

"In my view, it's their responsibility as a regulated monopoly to provide safe delivery of gas all throughout Dallas," says Councilman Lee Kleinman. "Their shareholders should pay the price of that pipe replacement, not the rate payers."

Kleinman says Atmos increased dividends eight percent last year, totaling $100 million. The rate increase would bring in an additional $10 million in revenue.

Carolyn King Arnold was the only council member to vote in favor of Atmos.

"Whether they get it here or get it at another level, we're going to have to pay to get that infrastructure taken care of," she says.

The city council's agenda item says city staff and legal counsel met with Atmos several times to try to negotiate a settlement.​

Atmos can appeal to the Texas Railroad Commission.