Council approves Atmos gas rate settlement that raises average home bill about $13 a month

Atmos Energy customers in Richardson will see higher natural gas bills under a rate settlement the City Council approved on Sept. 28. The council passed it unanimously as part of the consent agenda, which members adopt in a single vote without separate discussion.

What changes on the gas bill

Richardson belongs to the Atmos Cities Steering Committee, a coalition of cities served by Atmos Energy's Mid-Tex Division that reviews the company's annual rate requests. Atmos asked on April 1 for a system-wide increase of $398.5 million. After the coalition's consultants reviewed the filing, the two sides settled on $356.5 million, with $260.5 million of that attributable to the coalition's cities. City staff said that is $30.6 million less than Atmos first sought from those cities.

According to the city's staff memo, the average residential bill rises from $94.48 to $107.85 a month, an increase of 14.15%, based on 40.7 Ccf of gas use. The residential customer charge goes from $23.65 to $24.35, and the per-Ccf consumption charge from about 74.7 cents to about $1.04. The average commercial bill rises 9.9%, from $452.93 to $497.75. The new rates apply to bills rendered on or after Oct. 1.

Staff explained that residential customers absorb a larger share because they are the biggest customer group and need more meters, service lines and other equipment. The memo also noted that if the city rejected the settlement, the company's original, higher request would stand, and Atmos could appeal to the Texas Railroad Commission, with the city paying for its own side of that case.

The resolution also sets a benchmark for pension and retiree medical costs in Atmos' next filing and requires the company to reimburse the coalition's ratemaking expenses.

Annual contracts also approved

The same vote awarded four annual contracts, each billed at bid or cooperative prices rather than a fixed total. Staff estimates from the agenda packet:

• Temporary general and heavy labor for solid waste collection and park maintenance: three firms, 22nd Century Technologies, A & Associates and Abacus Service Corporation, chosen from 18 bids. Estimated cost is $672,000 a year, with $432,000 from the solid waste budget and $240,000 from parks.
• Security and ushers for the Charles W. Eisemann Center: Innovative Solutions Advisors, doing business as Stadium People, at an estimated $255,000 a year.
• Vehicle parts and supplies for the city fleet: O'Reilly Auto Parts through a Sourcewell cooperative contract, estimated at $175,000 a year.
• Traffic signal controllers, conflict monitors and signal software: Texas Highway Products through a BuyBoard cooperative contract, up to an estimated $300,000 a year, covering routine signal maintenance and upgrades tied to the 2026 bond program.

References

City Council Meeting (2026-09-28). Retrieved from [https://richardsontx.new.swagit.com/videos/402455](https://richardsontx.new.swagit.com/videos/402455)