Fort Worth homeowners may pay higher gas bills so Atmos Energy can repair old pipes
Atmos Energy is asking North Texans to pay higher natural gas rates for their homes and businesses to offset the cost of repairing and replacing old pipes.
If approved, the proposed increases of $5.86 a month for residential customers and $17.56 a month for businesses would take effect Oct. 1.
Currently, the average residential customer is billed $52.01 a month, and a typical monthly commercial bill is $236.07. If the rate increase is approved, those bills would increase to $57.87 and $253.63, respectively.
The proposed rate increase comes at a time when many North Texans may be struggling to pay their monthly bills, as unemployment soars and residents seek help with their finances in the wake of the coronavirus shutdown.
Dallas-based Atmos needs the money to pay for $102.2 million in improvements performed in 2019, according to the utility company’s April rate review mechanism filing.
Atmos has drawn headlines in recent years after several incidents in which North Texas homeowners have experienced gas leaks and lost their homes to sudden explosions. In one case, a 12-year-old Dallas girl was killed.
The company has been working aggressively to modernize its delivery system, a company spokeswoman said. More than $800 million in improvements were made last year, and 85% of that work was related to enhancing the safety and reliability of the gas system.
Also, for those who need financial help, Atmos officials said they have suspended natural gas disconnections for customers who have fallen behind on their payments.
The Fort Worth City Council, which must approve any rate increase, could be asked to vote on the new gas rate in August or September. Under Texas law, cities have jurisdiction over gas rates, and utilities must get their approval to raise them.
The Texas Railroad Commission regulated natural gas companies in Texas, and could serve in an appellate role if the city and utility company can’t reach an agreement on rates.
Councilwoman Kelly Allen Gray said she was disappointed to learn of the proposed rate increase.
“It is very concerning, in the middle of a pandemic,” she said in a phone interview. “We have so many people who are out of work or whose work hours have been reduced, and their budgets are as tight as they possibly can be. I would hope our utility companies would be more thoughtful.”
Fort Worth resident Kelly Field learned about the proposed rate increase when he opened his monthly bill from Atmos and found a leaflet with information about the rates inserted in the envelope.
“It seems ATMOS is asking for a considerable increase. This is despite the fact ... natural gas is at historic lows,” Field wrote in an email. “My rate has NEVER gone down even when natural gas prices dropped a few years ago. Now that those prices are at historic lows, ATMOS wants a big increase. Why?”
Residents who pay their bills online or by automatic payment can view details of the proposed increase by logging onto their account and, on the right side of their computer screen, clicking on the link that reads “Click here to view your bill insert for the month.”
Fort Worth and more than 160 other North Texas cities are part of a steering committee that is consulted whenever Atmos wishes to raise rates, Atmos spokeswoman Celina Cardenas Fleites said.
Last year, Atmos fixed 15,800 gas peaks in its Mid-Tex region — which includes the Dallas-Fort Worth region and a large swath of North Texas — by repairing or replacing gas lines, according to the company’s rate request documentation.
