State investigating whether Atmos overcharging customers

Attorney General Paul Summers said Atmos’ delivery costs have declined significantly over recent years due to lower interest rates and corporate down-sizing in Tennessee, but he said the savings haven’t been passed on to consumers. He wants the Tennessee Regulatory Authority to look into the matter.

“This petition comes at a crucial time for Tennesseans as the coming winter’s heating bills are expected to be at record highs,” Summers said in a statement Monday. “While there is little we can do to control the high cost of natural gas, we plan to do everything in our power to assure that energy providers such as Atmos do not add excessive delivery charges to consumers’ bills.”

Atmos, however, disputes Summers’ accusations.

“We do not agree with the attorney general’s statement that the company is overearning and believe our rates are just and reasonable,” said Patricia Childers, vice president of rates and regulatory affairs at Atmos. “The company is in the process of reviewing the attorney general’s filing.”

Atmos, headquartered in Dallas, provides natural gas to customers in 15 Tennessee counties.

Summers said the Kentucky attorney general’s office has also called for a hearing to investigate Atmos’ practices, and is asking the company to lower its rates by as much as $7.4 million.

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On the Net:

Atmos Energy Corp.: http://www.atmosenergy.com