EL PASO, Texas (KTSM) — El Paso City Council voted to direct staff to schedule a public hearing on Monday, Nov. 17, to allow residents to hear directly from the Texas Gas Service about its proposed rate hike and the potential impact on local rate payers, the City said in a press release.
City Council also authorized staff to enter settlement negotiations with Texas Gas Service and other intervening parties.
The Texas Gas Service will also host community meetings in each council district between Nov. 4 through Nov. 17, if needed, to give residents a clear understanding of the proposed rate changes and their potential impact, the City said.
The Railroad Commission of Texas will hold a formal hearing before an administrative law judge in Austin on Nov. 4-5, to review Texas Gas Service’s June 2025 proposal to increase residential rates.
City Council voted earlier this year to intervene at the state level and suspend the proposed rate hike to “allow staff time to analyze the company’s request and assess its potential impact on El Paso customers,” the City said.
“Under TGS’s proposal, El Paso households could see an average residential bill increase of more than 27 percent—more than double what would occur if the current regional rate structure were maintained. The City’s analysis shows that merging the West Texas, Central Gulf, and Rio Grande Valley service areas into a single statewide system would unfairly shift costs onto El Paso residents.”
The City of El Paso
The City says it has also formally intervened in the case before the Railroad Commission of Texas to ensure fairness and compliance with state law requiring “just and reasonable rates.” The City has recommended the following:
- Maintaining separate service-area rates to ensure fairness and prevent cross-subsidies.
- Adopting a 9.0% return on equity (ROE) with a 50-50 debt-to-equity ratio, rather than TGS’s proposed 10.4% ROE and 60-40 split.
- Rejecting TGS’s proposal to spread credit card processing fees to all customers.
Here are the upcoming dates regarding the rate hike:
- Nov. 4–5: Formal hearing before the Railroad Commission of Texas in Austin.
- Nov. 4–17: Community meetings hosted by Texas Gas Service (as needed) in each Council district.
- Nov. 17: City Council public hearing on the proposed rate increase.
- January 2026: Expected final decision by the Railroad Commission of Texas.
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