Public Utilities Commission urging customers to share their perspectives on the proposal
Special to the HT
RBC| According to a press release from the Colorado Department of Regulatory Agencies Office of the Utility Consumer Advocate (UCA), Atmos Energy Corp. has filed an application with the Colorado Public Utilities Commission (PUC) proposing what UCA says is a 28% average increase to the “base rate” portion of monthly natural gas bills for its Colorado customers.
The proposed hike is the largest single increase in the company’s base rates in the last 25 years and would boost Atmos’s annual “base rate” revenues by approximately $17.56 million.
According to the PUC, the net increase in annual gas base rate revenues represents a 13.8% increase. “Atmos Energy filed a rate case with the PUC on Nov. 25, 2025, seeking an increase in base rates for natural gas service in order to recover costs associated with system operations and infrastructure investment. Atmos is also seeking Commission approval to implement a new rider (or bill charge) to capture the effects of the 2022 Inflation Reduction Act and potential changes to state and federal tax laws.
The company is requesting a net increase in annual gas base rate revenues of approximately $17.56 million, representing a 13.8% increase. If approved as filed, average residential customer monthly bill increases will vary, depending on customer location: $5.47/month for customers in the North rate area, $5.32/month for customers in the Southeast rate area, and $5.61 for customers in the Southwest rate area.”
Atmos states the additional revenues are sought to increase profits for shareholders (known as “Return on Equity,” or ROE) and to recover the cost of infrastructure investments made since its last base rate case in 2022. Additionally, the company is seeking an extra $674,868 from consumers to cover its “rate case expenses,” primarily for outside lawyers and consultants working on the proposal.
While Atmos projects the average residential customer’s total “all-in bill” will increase by a lower percentage—between 8.5% and 10.1%, or $5.32 to $5.61 per month—the Utility Consumer Advocate (UCA) notes that this projection includes parts of the bill not under consideration, potentially misleading consumers. The actual impact of the proposal on the portion of the bill at issue is the 28% base rate increase, as per UCA.
Public Review and Hearings
The PUC is conducting a formal review to determine if the proposed rates are “just and reasonable” and in the public interest. The Colorado Office of the Utility Consumer Advocate (UCA), a state agency that represents residential, small business, and agricultural consumers, has officially intervened in the proceeding.
The UCA is set to conduct expert audits, challenge Atmos’s request for a 10.8% profit margin for shareholders, and cross-examine company witnesses during the virtual evidentiary hearing scheduled for April 20-23, 2026. The UCA’s stated primary goal is to minimize bill impacts and achieve affordable rates for consumers.
How to Have Your Say
The PUC is urging Atmos Energy customers to share their perspectives on the proposal. The proceeding number is 25AL-0499G, which must be included in the subject line or comment to be added to the official record.
• Online Comment Form: Information on how to participate and file a comment is available on the PUC website: How to Participate in a Proceeding.
• Email: Send comments to [email protected].
• Public Comment Hearings: The PUC will host two remote public comment hearings on Thursday, April 2, 2026.
– First Hearing: 11:30 a.m. to no later than 1:30 p.m.
– Second Hearing: 4 p.m. to no later than 6 p.m.
Customers must register in advance to speak at the hearings. Registration and log-on information is available on the Commission’s public calendar at https://puc.colorado.gov/puccalendar.
UPDATED: Article has been updated to reflect a percentage difference in impact from the proposed rate increases between the Colorado PUC and the Utility Consumer Advocate Office of the Colorado Department of Regulatory Affairs.
