City staff and Texas Gas Service (TGS) presented a joint briefing to the Resource Management Commission covering the 2024 rate-case settlement, GRIP filings (Gas Reliability Infrastructure Program), customer-assistance contributions and the upcoming franchise-agreement timeline.

Maria Norton, city controller, summarized the 2024 negotiated settlement: the settlement reduced the company’s proposed revenue requirement and lowered the return-on-equity and rate-of-return from the utility’s initial filing; new rates were implemented in December 2024 after Railroad Commission approval. Norton explained timelines: settlement negotiations begin quickly after a filing and cities need council-approved priorities to meaningfully participate; the Railroad Commission began settlement talks about 52 days after the 2024 filing.

TGS representatives described operations, safety programs and system investments. Anthony Brown and Brian Weeks said the company uses risk-ranking software and prioritizes pipeline replacement and damage prevention work; TGS noted accelerated investments after winter storm Uri to improve resilience. TGS staff said their low-consequence, mobile leak-detection and other programs advance safety and that the company operates a materials-testing lab to analyze failures.

Commissioners asked for detail on customer-assistance funding (Norton said TGS contributed about $165,000 to the local Share the Warmth program in 2024) and franchise-fee receipts (Norton said TGS paid about $8.7 million in franchise fees to Austin in fiscal 2024 and total gas franchise receipts were about $9.4 million). TGS said the company coordinates with Travis County on assistance distribution.

Staff pointed out that GRIP filings are limited in city authority after a Texas Supreme Court decision, that GRIP increases appear on customers’ fixed charges and that franchise agreements (TGS franchise expires 10/15/2026) are the city’s primary forum for right-of-way negotiations. Staff recommended the commission develop broad priorities (for example prioritizing lower residential increases, funding for assistance, or conservation) and present them to council in a resolution so staff and outside counsel can negotiate with the utilities.

Commissioners discussed additional topics including contribution-in-aid-of-construction (KAIC/Kayak) practices, the scale of capital additions versus amounts collected in customer-funded contributions, and the long-term amortization of Winter Storm Uri costs through state-authorized mechanisms (House Bill 1520). Commissioners asked staff and TGS for further data; TGS offered hard-hat site tours on June dates and said it will return with an update on energy-efficiency programs in July.