Starting June 1, Dallas residential and commercial property owners will pay more on their gas bills.
On average, residential bills will increase by $7.83 per month, while commercial bills will increase by $12.19.
The increase comes after negotiations between the city of Dallas and Atmos Energy Corporation, the city’s natural gas provider. Atmos initially requested a total annual increase of $31.4 million, or $8.28 per month for residential and $21.72 for commercial.
After negotiations, the amount was reduced to $27.9 million. Atmos Energy can request a rate adjustment every year.
During its Wednesday meeting, the Dallas City Council unanimously approved the settlement with Atmos.
The City Council denied Atmos’ initial requests for rate hikes every year since at least 2019, saying the markups are uncalled for, city records show. The city later negotiated lower amounts with Atmos through settlements.
Chris Felan, vice president of rates and regulatory affairs for Atmos, said one factor behind the rate increase is that Atmos replaced 63 miles of pipe within the city and 3,398 steel service lines in recent years.
Residential customers saw an average increase of $13.69 in 2024, a $5.73 increase in 2023 and an average increase of $4.17 in 2022.