Austin Resource Management Commission Opposes Texas Gas Service Rate Increase Proposal

Austin's Joint Sustainability Committee (JSC) recently discussed significant developments regarding the Texas Gas Service rate case, which could impact local residents' utility costs. The Resource Management Commission (RMC) has begun reviewing issues related to gas service in Austin after receiving new authority to advise the city council on gas utility matters.

Texas Gas has filed a rate case with the Railroad Commission, proposing to consolidate its three service areas into one statewide region. This change could lead to higher costs for Austin ratepayers, as it combines areas with varying service costs. The company is also seeking a $41 million revenue increase, translating to a 7% rate hike for customers, excluding gas costs. Notably, the proposal includes a 38% increase in the fixed customer charge for small residential customers, which could disproportionately affect lower-income households.

Additionally, Texas Gas aims to expand its "Share the Warmth" program, which assists low-income customers. While the program's funding could increase to $2 million, there are concerns about transparency regarding who will bear these costs. The RMC expressed strong opposition to the proposed consolidation and the regressive nature of the rate changes during their discussions.

The city has until mid-November to make a final decision on the rate case, with a public hearing expected before any action is taken. If the city denies the proposal, Texas Gas may appeal to the Railroad Commission. The JSC emphasized the importance of public engagement in this matter, as it directly affects the community's utility expenses.