EL PASO, Texas (KTSM) — The El Paso City Council voted unanimously on Monday, July 21 to suspend Texas Gas Service’s (TGS) proposed $41.1 million rate increase for 90 days.
The move is designed to “protect residents from an immediate financial impact and allow the City to thoroughly evaluate the request,” the City said.
The increase was filed on June 30 and applies to TGS’s incorporated areas within three service regions: Central-Gulf, West North, and Rio Grande Valley, the City said. El Paso is in the West North region.
If approved as requested, the typical residential customer would see an average monthly increase of $10.38, with large residential users facing up to $14.64 more per month, the City said.
The City’s suspension of the proposed effective date provides immediate relief to ratepayers and creates time to analyze the proposal, the City said in its news release.
“The City is taking immediate steps to ensure that ratepayers are not burdened by unjustified utility hikes,” City Attorney Karla Nieman said. “This action allows us to dig into the data and make certain that any changes are fair, necessary, and in the best interest of El Paso residents.”
The City’s review will focus on whether the requested increase is truly needed, how the costs are being calculated, and whether the proposed changes are fair to El Paso customers, the City said.
Specifically, the City will take a close look at how much profit TGS is seeking, whether the company’s accounting for equipment wear and tear is reasonable, and whether the proposed consolidation of TGS’ three service areas into one Texas service area is reasonable or will make El Pasoans pay for costs incurred in other parts of the state, the City said.
The City Council will consider and make a ruling on the case before Nov. 17, the City said.
The City will then participate in proceedings before the Texas Railroad Commission (RRC), which has ultimate jurisdiction over the rate case.
The timeline sets the effective date 90 days after the original proposal unless adjusted by agreement among the parties or further action by the RRC, the City said.
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