DALLAS — Atmos Energy is seeking approval from Dallas city leaders for a 10% rate increase that would raise natural gas bills for customers across the city.
The proposal would increase the average residential bill by about $11 per month or roughly $135 per year. The company says the increase is needed to support continued investment in infrastructure and maintain safe, reliable service.
Dallas resident Nikki Stephens said winter utility bills already strain many households, particularly after severe weather earlier this year.
“Usually, it’s around $300-$350 for winter months, especially January,” Stephens said.
Outside of those colder months, Stephens said her gas bill remains relatively consistent.
“It’s just something that you expect,” she said.
Still, Stephens said she has noticed her bill climbing in recent years. If approved, the proposed increase would add to that trend.
“But when I hear that, I just know that the winter’s going to be more expensive,” Stephens said.
In a statement emailed to Spectrum News 1, Atmos said the requested increase is meant to keep pace with the rising costs of maintaining and expanding its gas system.
Company officials said that between October 2024 and September 2025, the Dallas-based utility invested more than $321 million in its natural gas system within Dallas city limits.
Chad West said city leaders plan to closely review the company’s request before making a decision.
“I think it’s prudent for us to comb through their budget. I haven’t seen Atmos trying to embrace any cost savings. You know, what are they doing to try to save the taxpayers’ money as opposed to just build additional infrastructure,” West said.
If the Dallas City Council approves the proposal in May, the new rate would take effect on June 1.
Stephens said she hopes the additional revenue would be used responsibly, noting that many residents are already dealing with higher costs for everyday necessities.
“You know, I want them to consider that everything is more expensive right now. Um, and a lot of people are struggling, um, they’re having to give up things that they normally wouldn’t have to,” she said.
An Atmos spokesperson said affordability remains part of the company’s planning process, stating, “Affordability is a critical consideration in the development of our investment plans, and we work diligently to minimize the cost to execute and finance these investments.”
West added that council members could potentially reject the proposal if they determine the increase is not justified.
“If council thinks that their rate increase is not justified, then I think we owe it to our taxpayers to deny it and end up in litigation,” West said.