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Resource Management Commission urges tougher franchise terms for Texas Gas Service; company says negotiations are under way
Summary
The Resource Management Commission recommended franchise changes to address steep residential bills, add low-income and conservation protections, and audit capital spending. Texas Gas Service said it is negotiating a draft franchise with city staff and described practical constraints on rapid rate redesign.
The Resource Management Commission presented unanimous recommendations to the committee on Feb. 11 calling for new franchise terms to address rising residential gas bills, increase low-income assistance, and reform conservation spending by Texas Gas Service.
"Texas Gas Service residential rates ... have gone up 111% in only the last 6 years," Paul Robbins, vice chair of the RMC, told the committee, citing the commission’s analysis. Robbins said aggregate fuel, storage and pipeline reservation fees and a regressive rate structure have collectively cost Austin households and businesses millions more in recent years and recommended several franchise changes, including requiring full capital recovery fees from developers and an annual prudence audit of proposed plant and capital…
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