FLOYD COUNTY – When a public utility requests a rate change, Texas cities have to first deny the change before meeting at the bargaining table. For Lockney and Floydada that means their respective councils have to approve the denial before teaming up with other cities to push forward.
Both municipalities did that on Tuesday, denying Atmos Energy’s request for a rate increase before adopting resolutions to allow the “Steering Committee of Cities Served by Atmos West Texas” to negotiate a new rate. Lockney City Attorney Lanny Voss explained the necessity of the move to his council Tuesday morning. “Atmos has been operating on a rate set in 2017,” he explained, adding that five years later, they want a substantial increase. “It’s in our best interest to deny it.”
Voss explained the way it works is that the steering committee will sit down with Atmos and hopefully reach a settled agreement before the two parties meet with the state’s Public Utilities Commission. “It gets both sides to the table,” Floydada City Manager Darrell Gooch explained to his council Tuesday evening.
Both councils approved the measure, with Lockney also approving a similar denial for Southwest Public Service, operating as Xcel Energy, for their rate increase request. Floydada did not take similar action since the city operates as its own electric supplier.
Both cities also briefly discussed budget plans, with Lockney City Manager Buster Poling announcing a September 13 public hearing for setting their tax rate. Floydada’s Gooch discussed plans for a slight increase to his city’s budget with the intention of giving city employees a 6.25 percent cost of living raise.
Floydada’s council also approved plans to no longer absorb credit card charges. Previously the city would not charge extra for residents to pay their utilities with a credit card, but with new software and an upcoming option to pay online, City Secretary Patty Lowrance asked the council if they wished to continue to eat the 3.5 percent fee. “I don’t see why we need to,” councilman Steve Lloyd said of absorbing the fees, noting the savings to the city would be significant. Residents who pay by check or cash would not have any changes to their bill.
