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Resource Management Commission raises concerns about Texas Gas Service rate case, consolidation and fixed‑charge increases
Summary
The Resource Management Commission told the Joint Sustainability Committee that Texas Gas Service has filed a rate case seeking roughly $41 million in additional revenues, proposing consolidation of service areas and a large increase in small residential customer charges.
Charlotte, a member of the Resource Management Commission (RMC), updated the Joint Sustainability Committee about a Texas Gas Service rate filing and the RMC’s early concerns. Texas Gas has filed a rate case that proposes consolidating its three Texas service regions into one statewide region and is seeking approximately $41,000,000 in additional annual revenue, Charlotte said.
"They are asking for a number of things... they're asking to increase revenues by $41,000,000, which is a 7 percent rate increase, excluding gas costs," Charlotte said, describing the filing. The company also seeks a 38% increase in the fixed customer charge for small residential customers while decreasing volumetric charges in many cases; RMC members said that structure would shift cost recovery toward higher fixed charges and make bills more regressive for low‑usage households.
The filing would also change the administration of the Share the Warmth low‑income assistance program. Texas Gas proposed expanding the program to $2,000,000 but the filing did not make clear whether shareholder matches would continue; RMC members said the lack of transparency makes it difficult to evaluate whether ratepayers or shareholders would bear the additional cost. Charlotte said the filing also includes line items for program administration, outreach and donation management.
The RMC discussed the issues and found general consensus opposing area consolidation, the proposed shift to higher fixed charges, and the lack of transparency around customer assistance expansions. Charlotte said the city has until about mid‑November to take final action; if the city denies aspects of the filing Texas Gas may appeal to the Texas Railroad Commission, which will hold additional hearings.
Charlotte encouraged public engagement and said the RMC will provide updates when formal public hearings and dates are scheduled. "So that, I think, is another thing that hopefully, you know, as that work comes along, we can get some updates about that here at the JSC," she said.
