Dallas has reached a settlement with Atmos Energy that would scale 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, with new rates taking effect June 1, 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.
The memo from Dallas’ chief financial officer, Jack Ireland, did not say what the new rate will be or the average amount residents can expect to pay. It now goes to City Council for consideration May 27, ahead of a May 30 state deadline to act on the request.
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.