While legislators pressure towns and cities to lower property taxes, homeowners face rising cost of living elsewhere, including another increase to their energy bill from Atmos.
Flower Mound approved a 14% rate increase requested by Atmos at its Sept. 21 town council meeting, and the increased rate went into effect on Oct. 1.
The town was able to lower the rate increase slightly because of its participation in the Atmos Cities Steering Committee and use of the Rate Review Mechanism, but the overall increase is almost completely out of the town’s control because of state legislation.
GRIP (Gas Reliability Infrastructure Program) legislation entitles Atmos to rate increase requests every year, and there isn’t much local municipalities can do.
According to ASCS, GRIP legislation allows monopoly gas utilities to increase rates after claiming to make capital investments, even if expenditures are decreasing and profits are increasing.
Flower Mound Mayor Pro Tem Adam Schiestel asked Meg Jakubik, the town’s director of budget and strategy, if there was anything the town could do to deem rates unreasonable, therefore providing some relief for residents, but the short answer is no.
“Even municipalities with original jurisdiction don’t have any course to intervene on those rate increases,” she said. “Sometimes, we’re up against a fight we can’t win.”
One course of action for the town could be to deny the rate increase, but the town would then have to fight its case through the Texas Railroad Commission, the state’s oil and gas regulatory body. That could cost more than the town would save.
“Atmos was entitled to the rate increase through GRIP, or we would have had to fight it at our own expense,” said Jakubik. “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.”
However, the town can seek some future relief by asking for a more comprehensive review of the entire tariff design and the rates Atmos is charging, according to Jakubik.
Schiestel and council member Chris Drew agreed that should be a course of action the town should consider taking, especially amid the town’s concern for loss of control at the local level.
“Over the last six years, [the town’s] tax increase has been 4%. We’re losing sleep over 9-10% utility rate increase – [Atmos] has increased rates by 57% over the same interval, and legislation allows them to do it. They pass all the capital costs onto the rate payers… it’s a great business to be in.”
Governor Greg Abbott has ramped up talks about eliminating property taxes, and was in southern Denton County in 2025 to sign bills that increased the homestead exemption for seniors and people living with disabilities.
Schiestel feels the state government should focus on helping out residents with the rising costs of utilities, not forcing local governments to decrease a major revenue stream.
“The governor is on TV saying we should have a two-thirds majority vote to raise taxes, but nothing is getting done about GRIP legislation,” he said. “Legislature is constantly beating the drum of lower property taxes, but homeowners insurance is up 75% over [six years] and your gas bill is up 57%… direct your attention to the thing that you can actually make a difference in affordability. Maybe it’s time to take a bit more action.”
According to Jakubik, residential gas rates will increase 50% more than commercial rates, which was determined the last time the rate case was designed. It’s another formula that municipalities do not have a say in.
Jakubik said the town will continue to communicate with other municipalities to explore the broader legislative issue, and seek relief for residents while also ensuring Atmos can operate safely.
“It’s finding that balance between what are the appropriate rates for the services that they’re providing and ensuring that they’re operating in a safe manner,” she said.
