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Securitization
 6 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Securitization Securitization
Kansas
Atmos Energy Kansas Securitization I, LLC (AEK), a special-purpose entity wholly owned by Atmos Energy, was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred during Winter Storm Uri in February 2021. In June 2023, AEK completed a public offering of $95 million of Securitized Utility Tariff Bonds. AEK's assets cannot be used to settle Atmos Energy's obligations, and the holders of the Securitized Utility Tariff Bonds have no recourse against Atmos Energy.
As described in Note 10 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, AEK is considered to be a variable interest entity. As a result, AEK is included in the condensed consolidated financial statements of Atmos Energy.
The following table summarizes the impact of AEK on our condensed consolidated balance sheets, for the periods indicated:
March 31, 2025September 30, 2024
 (In thousands)
Restricted cash and cash equivalents$1,616 $1,516 
Other current assets$3 $3 
Securitized intangible asset, net$78,892 $82,844 
Accrued interest$348 $365 
Current maturities of securitized long-term debt$8,418 $8,207 
Securitized long-term debt$72,609 $76,871 
The following table summarizes the impact of AEK on our condensed consolidated statements of comprehensive income, for the period indicated:
Three Months Ended March 31Six Months Ended March 31
2025202420252024
 (In thousands)
Operating revenues$2,951 $3,469 $6,344 $6,802 
Operation and maintenance expense(216)(224)(277)(224)
Amortization expense(1,689)(2,103)(3,953)(4,269)
Interest expense, net(1,046)(1,142)(2,114)(2,309)
Income before income taxes$— $— $— $— $— 
The securitized long-term debt is recorded at carrying value. The fair value of the securitized long-term debt is determined using third party market value quotations, which are considered Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value and fair value of the securitized long-term debt as of March 31, 2025 was $81.0 million and $81.9 million, and as of September 30, 2024 was $85.1 million and $87.8 million.
Texas
In March 2023, the Texas Natural Gas Securitization Finance Corporation (the Finance Corporation), with the authority of the Texas Public Finance Authority (TPFA), issued $3.5 billion in customer rate relief bonds with varying scheduled final maturities from 12 to 18 years. The bonds are obligations of the Finance Corporation, payable from the customer rate relief charges and other bond collateral, and are not an obligation of Atmos Energy. We began collecting the customer rate relief charges on October 1, 2023, and any such property collected is solely owned by the Finance Corporation and not available to pay creditors of Atmos Energy.