Natural gas utility Atmos Energy’s profit grew 18 percent in the third fiscal quarter to $45.7 million, largely off rate increases to its Texas customers, according to a regulatory filing Wednesday.
The Dallas-based utility, which operates across eight states, is in a legal fight with more than 130 Texas cities over another rate increase that would raise $45 million.
Atmos says it needs the additional revenue to cover upgrades to its pipeline infrastructure. The company says it plans to take the fight to the Texas Railroad Commission, which sets natural gas rates in the state.
Atmos earns roughly half of its profit in Texas. Through the first nine months of the fiscal year, capital expenditures were down 5 percent to $553 million.
CEO Kim Cocklin said in a prepared statement that he expects profit at Atmos to continue to grow.
“While we continue to focus on providing safe and reliable service to our customers, the predictable and stable nature of our regulated operations offers strong earnings growth,” he said.
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