Flower Mound leaders say state law leaves cities with almost no way to push back on Atmos Energy's natural gas rate increases, after the town signed off on a 14% hike that took effect Oct. 1, the Cross Timbers Gazette reported Tuesday.
The Flower Mound Town Council approved the increase Sept. 21. Taking part in the Atmos Cities Steering Committee and the state's Rate Review Mechanism let the town trim the request slightly, according to the Gazette.
Limited leverage
Atmos can seek yearly increases to recover certain infrastructure costs under the state's Gas Reliability Infrastructure Program, known as GRIP, which limits how much local governments can challenge them, the newspaper reported. The steering committee has argued that the GRIP law lets monopoly gas utilities raise rates after claiming capital investments, even when spending is falling and profits are rising.
When Mayor Pro Tem Adam Schiestel asked whether the town could declare the rates unreasonable, Meg Jakubik, Flower Mound's director of budget and strategy, said the short answer was no.
"Even municipalities with original jurisdiction don't have any course to intervene on those rate increases," Jakubik said. Rejecting the increase would have pushed the town into a case before the Texas Railroad Commission that could cost more than residents would save, she said.
"The action [council] took in September was the best defense they could take for our residents because at least we were able to negotiate the rate down slightly."
