Atmos Energy wants to increase Dallas rates

• If approved, the rate would go into effect June 1.

Why it matters: Customers are already complaining about high bills due to rising natural gas prices and winter weather.

• During a December freeze, Atmos failed to provide hundreds of North Texas residents with enough gas pressure to warm their homes. Gov. Greg Abbott called for the Texas Railroad Commission to investigate the company.

Flashback: Atmos sent a notice to customers in the fall, warning that their bills could be more expensive this winter.

• The Consumer Price Index for utility gas service was up 3% in December.

Details: Atmos said in a request to the City of Dallas it wants to increase its annual revenue by $20.6 million to cover the $180 million the company spent between October 2021 and September 2022 to replace miles of pipe in the area.

• "Current rates don't allow us to recover our additional spending on safety and reliability," the company said in its request.
• City staff members are reviewing the request and will present recommendations to City Council on May 10.

Yes, but: The Texas Railroad Commission, which oversees pipeline companies, found that Atmos did not adequately detect leaks in gas lines in the days and months before a 2018 explosion that killed a 12-year-old girl in her Northwest Dallas home.

• After the fatal explosion, the company said it would replace all of the city's 456 miles of cast iron piping.

Zoom out: The company is requesting a similar rate increase in Kansas, according to a public notice.

• Atmos wants to increase its revenues there by $8.3 million to offset costs of updating its systems and hikes in wages and medical expenses.