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RMC backs $100,000 study on municipalizing Texas Gas service in Austin, votes 6-0-1
Summary
The Resource Management Commission voted to advise City Council to budget $100,000 for a feasibility study of purchasing Texas Gas Service assets within Austin city limits to evaluate costs, rate impacts and leak-reduction opportunities; commissioners debated climate and budget trade-offs before approving the motion.
The Resource Management Commission on June 16 voted 6-0-1 to recommend that City Council budget $100,000 to study the costs and benefits of Austin purchasing Texas Gas Service operations within the city limits and converting those assets to a municipal gas utility.
Vice Chair Robbins, who introduced the resolution, said the franchise negotiations produced some concessions (low-income assistance in 2029 and improved leak reporting) but did not address progressive rates or additional conservation strategies. Robbins argued a short, consultant-led study could quantify whether municipal ownership would benefit ratepayers and provide the city greater control over conservation and leak mitigation.
Commissioners debated the measure. Some raised concerns about adding fossil-fuel infrastructure to the city's portfolio and about the timing given the city's tight budget; others noted that a study would only provide information, not a commitment to buy the system. Commissioner Silverstein supported immediate study to avoid repeating past conversations with insufficient data. After discussion, the commission passed the recommendation with one abstention.
What the resolution asks: RMC's motion requests City Council budget $100,000 for a consultant to assess municipalization costs and benefits, and invites other large cities in Texas Gas Service's territory to participate in a joint study if desired.
Next steps: The recommendation is advisory; Council and the city manager will decide whether to fund a study. Commissioners said they would continue to seek data and analysis to inform any future negotiations or policy decisions.
