City of Canyon pushes back against Atmos' proposed rate increase

Atmos Energy has filed a statement of intent to increase gas rates across its West Texas division, including the City of Canyon, raising concerns among local officials and residents. The proposed increase would see the typical residential customer’s gas bill rise by over $16 per month.

Atmos is seeking to raise system-wide base rates by approximately $66 million, prompting pushback from local leaders who question the justification for such a significant increase.

At a city meeting held Tuesday night, the Canyon City Commission voted to deny Atmos Energy’s rate hike, sending the matter to the Texas Railroad Commission for further review. City Manager Joe Price explained the reasoning behind the decision.

“We do have a rate council, they asked to review those. They found that those increases were too much and they didn’t have enough confidence in those, so they decided to go ahead and deny those rate cases,” Price said.

Advocating for Fair Utility Costs

The City of Canyon has been vocal about its responsibility to protect residents from unjustified cost increases on essential utilities.

“It’s just good that we’re able to speak for our community regarding rate setting for any of these private utilities, minus cable. We’re able to do that in a good fashion to make sure those costs are justified,” Price added.

While the city has denied the increase at the local level, the final decision now rests with the Texas Railroad Commission, which regulates gas utility rates across the state.

Possible Settlement in the Works

Despite the initial rejection, negotiations with Atmos Energy are ongoing. City officials have already been approached by the company regarding a potential settlement agreement. According to Price, the original $66 million request could be reduced by half through this settlement.

The city remains committed to ensuring that any rate increases are reasonable and necessary, rather than placing an undue financial burden on residents.

“We want to keep rates in a fair state for the citizens of Canyon,” Price emphasized.

As discussions continue, the City of Canyon is expected to work closely with Atmos Energy and state regulators to reach a resolution that balances infrastructure needs with consumer affordability.