Posting Language
Title
Approve an ordinance suspending a rate increase proposed by Texas Gas Service for natural gas services; requiring reimbursement of municipal rate case expenses; providing notice to Texas Gas Service; and approving the City's membership in a coalition, including participation in proceedings related to the proposed rate increase at the Railroad Commission of Texas Funding: This item has no fiscal impact.
De
Lead Department
Financial Services Department.
Fiscal Note
This item has no fiscal impact.
For More Information:
Marija Norton, CPA, Controller, 512-974-2951; Kim Euresti, CPA, Deputy Controller, 512-974-2232.
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 of the CGSA, WNSA, and RGVSA.
Under the application, TGS is seeking to increase system-wide distribution rates by $41.1 million annually, an increase of 7.07% including gas costs, or 9.83% excluding gas costs. TGS is also seeking to consolidate its service areas into a single statewide jurisdiction. The proposed rates for all customers are based on the systemwide cost of providing service to customers throughout the entirety of Texas.
The estimated change in rates would result in an average monthly bill of $48.82, including the cost of gas, for small residenti...
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