Dallas residents could see their gas bills skyrocket if Atmos Energy gets its way, seeking a hefty rate hike from the Dallas City Council that would mean an extra $13.72 tacked onto the average residential customer's monthly bill, an increase that is intended to boost the company's annual revenue in the city by $47.9 million, as reported by The Dallas Morning News. Commercial customers aren't dodging the bullet either, facing a possible uptick of $52.63 monthly, with the proposed new rates scheduled to take effect on June 1, if the City Council gives the green light by the May 26 deadline.
While the energy giant cites the need to begin recouping over $231 million spent on capital improvements to enhance the city's natural gas system's safety and reliability, the rate increase request comes hot on the heels of the added financial burden from costlier gas during the 2021 winter freeze, a factor mentioned in Atmos' filing, according to WFAA. This isn't the company's first attempt to upend rates, with a previous proposal last year that aimed to raise residential bills by an average of $4.51 per month—though ultimately settling for a lower increase following the City Council's rejection and consequent negotiations.
Atmos Energy which raked in nearly $4.3 billion in revenues in its last fiscal year has been embroiled in controversies over safety violations, including a $1.6 million fine tied to their failure to detect leaks preceding a fatal explosion in 2018 that claimed the life of a young girl in her Dallas home," a detail dug up by The Dallas Morning News. The company has also found itself in legal hot waters following recent explosions in Fort Worth and Carrollton, spotlighting questions of oversight and accountability as it now seeks to pass financial burdens onto its customers.
As proceedings unfold, the city is enlisting consultants and outside attorneys to review Atmos' proposal, with the council's government performance and financial management committee poised for a briefing on May 21 on the findings. The outcome of these deliberations could determine whether Dallas residents will need to brace for the financial hit or if the City Council will rebuff the energy provider's aggressive rate hike attempt, for the time being, Kristin Goodspeed, an Atmos spokeswoman, said the rate increases would help the company cover a significant chunk of its spending on infrastructural safety enhancements, as cities and corporations alike grapple with the intersecting demands of public welfare, fiscal prudence, and shareholder interests.
