The Kentucky Public Service Commission (PSC) has approved new base rates for Atmos Energy Corporation that are significantly lower than the utility initially requested, according to a PSC release.
Atmos filed its application for a general rate adjustment and other relief on Sept. 27, 2024, under Case No. 2024-00276. The company sought a $33,001,164 increase — about 17.9% — including a proposed $9.59 monthly hike to the average residential customer charge. In its order issued Aug. 11, 2025, the PSC denied the full request and instead authorized an $15,728,013 increase in revenues, or 8.4%.
Kay Coomes, manager of public affairs for Atmos, said it’s important for customers to know that the final increase is well below what was originally proposed.
“We didn’t get the full increase, and that’s OK,” Coomes said. “The release was somewhat confusing; it read like your bill was going to go up $9.59. That’s just not true — we requested that, but we didn’t get it. The average bill prior to our rate case was about $27 a month, and after the increase, it’s going to be a little over $33, so that’s just a little over a six-dollar increase.”
The PSC also approved raising the residential customer charge by $5.70 — from $19.30 to $25.00, representing a 29.5% increase. Residential gas charges will rise from $1.5483 per Mcf to $1.6261 per Mcf, or 5.02%.
According to the PSC, a typical residential customer using 5.2 Mcf per month will see an average bill of $33.73, up $6.38, or 23.34%, from the current $27.35.
The PSC also stated that it increased the cap on Atmos’ Pipeline Replacement Program from $28 million to $40 million annually and expanded eligibility to include the replacement of Aldyl-A pipe for safety purposes. Previously, the program covered only bare steel pipe replacement. The commission said the change acknowledges Atmos’s efforts to speed up the replacement of older pipelines that pose safety risks.
Coomes said the main driver for the rate request was infrastructure improvements.
“Safety is our number one priority,” she said. “When we do a rate case, it’s all about the safety of our system — getting out old pipe and putting in new pipe. Even after this increase, Atmos Energy will still maintain the lowest residential rates in Kentucky among all the major distribution operators in the state.”
The PSC said the Attorney General’s Office was the only intervenor in the case. Kentucky Industrial Utility Customers, Inc. initially filed to intervene but later withdrew.
According to its website, Atmos Energy is headquartered in Dallas and delivers natural gas to about 3.3 million customers in eight states. In Kentucky, its regulated gas distribution operation serves roughly 180,694 residential, commercial, and industrial customers in central and western parts of the state. The company last filed for a rate adjustment in Kentucky in Case No. 2021-00214.
