Dallas has reached a settlement with Atmos Energy that scales back a proposed $11-a-month increase in residential gas bills for the average customer.
The gas company initially sought a $38 million revenue increase from Dallas customers under its annual rate review process, according to a city memo released Friday. That’s equal to a 10.5% increase for a typical residential customer, or roughly $135 per year.
Under the settlement, the average residential customer would see an increase of about 9.4%, or about $9.46 more per month, according to a presentation for a City Council committee. The average commercial bill would increase by about 6.5%, or $32.35 per month.
The new rates would take effect June 1.
The memo from Dallas’ chief financial officer, Jack Ireland, comes ahead of a Tuesday briefing with the council’s finance committee. It then goes to full council for consideration May 27, ahead of a May 30 state deadline to act on the request.
City officials said outside consultants reviewed the filing, and staff shared the findings with Atmos. That helped lead to the settlement, which trimmed the company’s proposed Dallas revenue increase by more than $4 million.
Atmos is expected to reimburse the city for its review expenses, with the final amount to be determined after the settlement is adopted.
Related: Atmos asks Dallas City Council to approve about 10% rate increase for local customers
The Dallas-based company said in its proposal it needed to raise rates to keep up with the costs of providing “safe and reliable” service. It said it invested more than $321 million within city limits between October 2024 and September 2025.
Atmos previously cited infrastructure improvements as a reason for increasing costs. City officials have typically denied initial rate requests, since at least 2019, later negotiating lower amounts through settlements.
This reporting is part of the Future of North Texas, a community-funded journalism initiative supported by the Commit Partnership, Communities Foundation of Texas, The Dallas Foundation, the Dallas Mavericks, the Dallas Regional Chamber, Deedie Rose, Lisa and Charles Siegel, the McCune-Losinger Family Fund, The Meadows Foundation, the Perot Foundation, the United Way of Metropolitan Dallas and the University of Texas at Dallas. The News retains full editorial control of this coverage.
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