Thursday, June 26, 2008

Dallas Residents to Pay Increase for Natural Gas

By ERIC TORBENSON / The Dallas Morning News
etorbenson@dallasnews.com

Atmos Energy residential customers in Dallas will pay about 65 cents more a month for natural gas service, after Texas regulators approved a rate hike.

The increase affects about 20 percent of Atmos' customers in its Mid-Tex Division.

The new prices will start showing up in bills as soon as the utility can implement the Texas Railroad Commission order, Atmos spokesman Rand LaVonn said Wednesday.

Last September, Atmos asked for a $1.57 a month increase.

All cities except Dallas settled with the company before the commission ruled on the request.

In January, 151 cities agreed to an average rate increase of 20 cents a month, and the cities gave Atmos an annual mechanism to adjust rates, a process usually reserved for the railroad commission.

In February, 49 more cities settled with Atmos, also for increases averaging about 20 cents per residential customer.

Dallas and unincorporated areas of Atmos' territory were the last holdouts, and their customers will pay more than the cities that settled.

"We wish Dallas could have come on board with us," Mr. LaVonn said.

A telephone message to Dallas officials involved in the process wasn't returned.

Dallas customer rates won't adjust annually under the ruling.

Atmos may file to get other rate increases in the future.

The railroad commission may grant an increase, lower the requested amount or force the utility to lower rates.

The annual rate increase for Atmos customers affected by the commission order totals $2.7 million, the utility said.

Atmos must charge the wholesale cost of gas to customers; it earns a profit on service fees.

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