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Texarkana council unanimously suspends Summit Utilities proposed gas rate increase for 90-day review
Summary
The Texarkana, Texas, City Council voted unanimously to suspend the proposed effective date of a Summit Utilities Arkansas rate filing for 90 days, directing staff to gather financial and infrastructure documentation and to schedule further public review before setting local rates.
The Texarkana, Texas, City Council on April 14 unanimously approved Resolution 2025-023 to suspend for 90 days the proposed effective date of Summit Utilities Arkansas Incorporated’s natural gas rate filing and to request additional documentation from the utility.
City Attorney Jeff Lewis told the council it has three basic options when a utility proposes new rates — take no action, deny the increase (which allows an appeal to the Texas regulatory authority), or temporarily suspend the effective date to gather more information. Lewis recommended the suspension so the city can obtain financials, depreciation schedules and other evidence before deciding whether to set “just and reasonable” rates for Texarkana, Texas.
“The middle ground is suspending the proposed effective date for a period of 90 days,” Lewis said, adding that suspension would “reset that effective date to July 31” and allow the council to hold further public hearings. He also stressed the need for evidence about how Summit plans to use additional revenue: “We need to see what information is available to show the city council what dollars are being spent. What is the purpose for the $2,000,000 in revenue that someone has identified it needs to raise?”
The resolution directs city staff to request categories of documentation from Summit Utilities and schedules additional public review. Lewis also noted a peculiarity of Texarkana’s franchise arrangements: Arkansas rates act as a ceiling for rates in Texarkana, Texas, under longstanding agreements, but the council must still determine what is just and reasonable locally based on evidence submitted in Texas.
Council member Annette Matlock moved to approve the suspension; council member Davis seconded. The motion passed unanimously.
The council’s action does not set new rates. Instead it pauses Summit’s proposed effective date, requires additional records and allows the city to reconvene with more information and public input before any permanent change in local rates.
Provenance: City Attorney Jeff Lewis presented the legal options and recommended the 90-day suspension; the council voted on Resolution 2025-023 and passed it unanimously.
