TRA Taking Closer Look at Atmos Over-earnings

The Tennessee Regulatory Authority agreed (today/yesterday) to move ahead with a trial-like hearing in a case involving the over-earnings of Dallas-based Atmos Energy Corporation.

Atmos provides natural gas to Rutherford and Williamson County residents, and the state Attorney General has alleged that Atmos is overcharging its customers.

A T-R-A staff report places Atmos’ 2005-earnings at more than 10-and-a-half percent while the Regulatory Authority says reasonable earnings would be more like 7-point-4 percent.

Assisant Attorney General Vance Broemel says the report gives enough evidence for Atmos to bare the burden of proof and defend its rates before the Regulatory Authority.

“The rates have to be just and reasonable, and that means you’re not over-earning. And the staff found they were over-earning as well as that’s our position, so yes, we think there is a violation of law in that sense that the rates need to be just and reasonable.”

Atmos officials say the company is charging rates which the T-R-A has approved. They add that the T-R-A report is flawed. It takes only a snapshot of their earnings and compares it to a smaller, regional energy company – Chattanooga Gas. Atmos Attorney Misty Kelley.

“The proof in the docket shows that not only is Atmos not entitled to the same return as Chattanooga Gas, but if you look at it, we’re actually entitled to a higher return.”

No date has been set for the “contested case,” but the Attorney General is pushing the T-R-A to decrease rates for Middle Tennessee’s Atmos customers by the start of the heating season in October.