Atmos Energy To Raise Rates

Gas customers in some Middle Tennessee counties could see their rates go up soon, less than a year after they successfully fought for a decrease.

Last year, the Tennessee Regulatory Authority decided that Atmos Energy was overcharging customers in Rutherford, Bedford, Williamson and Maury counties. It ordered the utility to drop its rates, reducing collections by 6 million dollars.

In May, Atmos filed a request to adjust those rates back up. Spokeswoman Denise Manning says the company is making needed infrastructure improvements, and that affects the bottom line.

“This rate increase is because of the 70 million dollars we’ve invested in the state of Tennessee. We need to recover these costs and be able to offer our services at a reasonable rate.”

The state’s Consumer Advocate Division initially protested the hike, but last week, it reached a settlement with Atmos. The deal would allow the company to increase its rates by 9 percent. For the average residential customer, that means gas will cost about 2 dollars more a month. For the company, it effectively restores about two-thirds of the revenue it had lost. To ensure that money is going towards infrastructure costs, the settlement requires Atmos to replace at least 4,500 feet of pipe per year for the next decade.

On Monday, the Tennessee Regulatory Authority will decide whether or not to approve the settlement. Although Atmos faced opposition all summer from a competitor and a group of commercial customers, no one is expected to challenge the settlement.