Attorney General Jack Conway and his office of rate intervention announced today a prelimary settlement agreement with Atmos Energy Corporation.

The agreement will reduce the company's original demand for a rate hike by almost 38 percent.

The agreement limits Atmos to a general increase of $5.9 million, a decrease of about $3.5 million from its original request.

Conway says Atmos customers will experience a much smaller increase in natural gas rates than they would have.