Posting Language
Title
Conduct a public hearing and consider an ordinance relating to the Statement of Intent to Increase Gas Rates proposed by Texas Gas Service; authorizing the City's ongoing participation as a member city of Cities Served by Texas Gas Service Company in the proceedings before the Railroad Commission of Texas related to the proposed rate increase; authorizing engagement with counsel and consultants for Texas Gas Service Cities, including authorizing settlement of the rate case; requiring reimbursement by Texas Gas Service of rate case expenses; and providing notice of the ordinance to Texas Gas Service. Funding: This item has no fiscal impact.
Body
Lead Department
Financial Services
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
July 24, 2025 - Council approved an Ordinance suspending the Texas Gas Service rate increase for 90 days, authorizing staff to join a coalition of cities and participate in ongoing, related proceedings before the Railroad Commission of Texas.
Additional Backup Information:
On June 30, 2025, Texas Gas Service Company, a division of ONE Gas, Inc. (TGS), filed a rate application to change gas utility rates within the City of Austin and other cities in the Central-Gulf Service Area (CGSA), the West North Service Area (WNSA), and the Rio Grande Valley Service Area (RGVSA). Cities in the CGSA include Austin, Bee Cave, Cedar Park, Cuero, Dripping Springs, Gonzales, Kyle, Lakeway, Lockhart, Luling, Rollingwood, Shiner, Sunset Valley, Nixon, West Lake Hills and Yoakum, Bayou Vista, Galveston, Groves, Jamaica Beach, Nederland, Port Arthur, Port Neches, and Beaumont. Simultaneously with this city-level filing, TGS also filed with the Railroad Commission of Texas (Case Number OS-25-0002802) for the unincorporated areas and for those cities that have relinquished their jurisdiction to the RRC of the CGSA, WNSA, and RGVSA.
Under the application, TGS is seeking to increase system-wide distribution rates by $...
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