Company: ATO
Filing Date: 2025-03-27
Form Type: CORRESP
Source: 0000731802-25-000010
Chunk: 4

Company: ATMOS ENERGY CORP
Filing Date: 2025-03-27
Form: CORRESP
Chunk 4
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 Karl Hiller

United States Securities and Exchange Commission

March 27, 2025

Page 5

Our rates are established by the regulatory authorities in each of the states in which we operate and are intended to be sufficient to cover the costs of conducting business, including a reasonable return on invested capital. In order to seek a rate increase, we must submit to the applicable regulatory authorities supporting detail justifying the nature, timing, and costs (including costs to survey, inspect, repair, and replace our pipeline systems) that we seek to recover. We anticipate our costs to conduct business, including the costs incurred to execute our integrity management programs will be recovered. On pages 6-12 of our Form 10-K, we have summarized the various regulatory mechanisms and programs that are available to us to recover our costs.

In response to the Staff’s comment to provide more detail regarding our timeline, duration and estimated cost of replacement, upgrade and repair to our system, we propose to include the following information in our 2025 Form 10-K:

We anticipate making significant capital expenditures for the foreseeable future to modernize our distribution and transmission system, to comply with the safety rules and regulations issued by the regulatory authorities responsible for the service areas we in which we operate, and to prepare to serve the growing needs of the communities we serve. Between fiscal years 2025 and 2029, we anticipate spending approximately $24 billion, with more than 80% dedicated to safety and reliability spendi ng. The magnitude and allocation of these expenditures may be affected by factors such as new policy and regulations, population growth, and increased labor and materials costs. Although we believe these costs are ultimately recoverable through our rates based on the regulatory frameworks currently available to us, full recovery is not assured.

Sincerely,

Atmos Energy Corporation

By: /s/ CHRISTOPHER T. FORSYTHE

Christopher T. Forsythe

Senior Vice President and

Chief Financial Officer