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News You Can Actually Use, Actually

You Are Aware the City Council Is Likely to Increase Your Atmos Energy Bill, Right?

By Robert Wilonsky, Wednesday, Sep. 16 2009 @ 1:48PM
Comments (7)
Categories: News You Can Actually Use, Actually
AtmosLogoR_K_LG.jpg
​
Just when the budget process couldn't get more interesting ...

Yesterday we noted that some on the council, and City Manager Mary Suhm, have pointed out that at the end of the year, the city's franchise fee contract with Atmos Energy is set to expire. Suhm notes, on Page 24 of today's budget amendment workshop briefing:
The current gas franchise with Atmos Energy expires in December 2009. To be consistent with those franchises that are based on a percent of revenues (cable and water/sewer), a new franchise which increases the fee from 4% to 5% is recommended. The additional revenue generated by the franchise fee increase is projected to be $1.3 million; assuming an April 2010 implementation. A council vote, prior to April, is required to implement the new franchise.
This morning, Ron Natinsky got the council to barely okee-doke his proposal to save rec center and senior programs using the franchise fee hike; he also found some money for the library to buy materials. But not before Angela Hunt and other council members asked, more or less, "Um, isn't that really just a disguised tax increase?" To which Natinsky said, more or less, "Nope, it's a fee."  Win!

Either way, if the council votes to up the franchise fee -- which it would more or less do next Wednesday, when the council puts its stamp on the budget or else -- it will be a rate hike. Gerald Hunter, director of communications for Atmos Energy Corp. on LBJ Freeway, says so. "That's correct," he tells Unfair Park. Because, he explains, that franchise fee is "collected on behalf of the city where the utility operates in return for the right to use the rights of way, or the conveyances, throughout the community for delivering utility services." And if you look on your Atmos bill, it's right there: "RIDER FF: 0.04082."

Hunter then told me to call Ray Granado, media relations rep for Dallas County, who'd have more specifics. Granado said he was kind of aware of the proposed rate hike: "I know that's still in the works." But when told council had pretty much decided to go ahead with the move to fill in a few budget blanks, he said, well, he'd like to call me back in a few. So.

Update at 2:42 p.m.: Granado called back and said, "We're not aware of the council's actions today, but we are in the process of negotiating with the city, and that is to renew our expiring franchise agreement. We are in negotiations with the city, and right now it's too early to comment on how those negotiations may turn out." He says Atmos officials weren't aware an increase was on the briefing agenda for today.
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More About:

  • Mary Suhm
  • Ron Natinsky
  • Ray Granado
  • Gerald Hunter
  • Utilities Sector

Comments (7)

Heywood U. Buzzoff says:

And Atmos till take this 'fee' and pass on zero percent to the customers, unicorns will nest in the tress outside Natinsky's office, and lollipops will grow wild outside city hall. Yeah, sure!

Posted On: Wednesday, Sep. 16 2009 @ 2:14PM
Payment in lieu of taxes p.i.l.o.t. says:

What is the latest on margolin's opposition to p.i.l.o.t. on water dept? Is that gas tax earmarked for "economic development" like p.i.l.o.t. Would be? Why can't we use the p.i.l.o.t. money for libraries, police, parks etc. I'm concerned leppy might take the p.i.l.o.t. money to make those "appropriated grant payments" in the cchotel economic development agreement.

Posted On: Wednesday, Sep. 16 2009 @ 2:41PM
chad says:

Utilities are going to go up all around. Time to conserve even more. Keep the lights turned off and adjust your thermostats and sprinklers accordingly.

Posted On: Wednesday, Sep. 16 2009 @ 2:46PM
JF says:

This is a tax increase, plain and simple. However, it's interesting to notice who the burden of this tax will fall on. It will hit only owner-occupied homes and renters (aside from the small % of renters whose utilities are paid by the landlord). It's a way of increasing city revenue without hitting real estate investors (they're hurting right now anyways, but there's no reason the city needs to cut them a break more than any other group).

Posted On: Wednesday, Sep. 16 2009 @ 2:49PM
scott says:

Chad, what is so awful is that Natural Gas is at all time lows. Ironically, despite deregulation our utility prices don't reflect these falling prices. So much for the illusion of competition.

JF, even those whose landlords pay their utilities will be pinched with higher prices. It will hit everyone the same. The poor will enjoy the same increase as those in Preston Hollow. All because they are too cowardly to raise property taxes.

Posted On: Wednesday, Sep. 16 2009 @ 8:02PM
Mary Hasan says:

If the mayor had proposed a tax increase, the council would have approved it. They are like sheeps led to slaughter. We will have to pay for the Atmos increase. At least with a tax increase, I can write it off on my income tax. Next year, we will have the tax increase and the increase in water and the Atmos increase. If your children are on a little league team that uses city facility, their cost will increase to play on team. This council did not do us a favor, they have cost us more money.

Posted On: Thursday, Sep. 17 2009 @ 11:39AM
j.d.w... says:

Atmos Energy purchases natural gas year 'round from many suppliers. The gas must be delivered to Atmos Energy for re-delivery to you on even the coldest day. Waiting until winter to buy gas on the "spot" market is very risky. Suppliers may have committed their natural gas to other buyers or middlemen by the time winter arrives. Thus, Regulators encourage Atmos Energy to fill storage and "lock-in" prices in warmer months to assure supply and take advantage of (usually) lower prices.

Whether your bill is $30 or $300, Atmos Energy charges about the same amount each month for delivering your natural gas. Residential customers pay, on average, between 15 percent and 20 percent of their winter gas bills for distribution service. Most customers also are charged from 5 percent to 10 percent for state or local taxes and franchise fees assessed by their city or county.

Posted On: Thursday, Sep. 17 2009 @ 4:27PM

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