Posting Language
Title
Approve an ordinance suspending a rate increase proposed by Texas Gas Service for natural gas services.
Body
Lead Department
Financial Services Department
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
November 3, 2016 - Council approved Ordinance No. 20161103-077, establishing tariffs for the provision of gas service by Texas Gas Service Company within the City of Austin.
For More Information:
Diana Thomas, CPA, Deputy Chief Financial Officer, 512-974-1166.
Additional Backup Information:
On June 3, 2024, Texas Gas Service Company (TGS) a Division of ONE Gas, Inc. (ONE Gas), pursuant to Subchapter C of Chapter 104 of the Gas Utility Regulatory Act, filed its Statement of Intent to change gas rates at the Railroad Commission of Texas (RRC) and in all municipalities exercising original jurisdiction within the incorporated areas of the Central-Gulf Service Area (CGSA), effective July 8, 2024.
TGS is seeking to increase its revenues in the CGSA by $25.8 million, which is an increase of 9.83% including gas costs, or 15.59% excluding gas costs. TGS is also requesting:
1. Approval of new depreciation rates for certain plant within the CGSA;
2. A finding that expenses for Winter Storm Uri and COVID-19 that are contained in regulatory
assets authorized by the RRC are reasonable, necessary, and accurate;
3. A prudence determination for capital investment made in the CGSA through December 31, 2023;
4. Approval to include Excess Deferred Income Taxes (EDIT) in base rates, with discontinuance of the
EDIT Rider to return EDIT to customers; and
5. Approval to recover the reasonable rate case expenses associated with the filing through a surcharge.
The TGS's new proposed tariff includes:
1. A new Small and Large Residential rate design and related rate schedules based on customer usage patterns;
2. A new Small and Large Commercial rate design and related rate schedules based on customer usage patterns;...
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