The El Paso City Council is putting the brakes on the Texas Gas Service’s plan to raise rates.
The City Council voted unanimously to suspend TSG’s proposed $41.1 million rate hike for 90 days during its meeting on Monday, July 21. The delay provides the city with additional time to assess the potential financial implications of the company’s request.
“The city is taking immediate steps to ensure that ratepayers are not burdened by unjustified utility hikes,” City Attorney Karla Nieman said in a city news release. “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.”
If approved as proposed, the TSG rate increase would result in an additional $10.38 per month for the average customer. Larger residential customers would see an average monthly increase of $14.64 each month.
The company insists that the rate increase is necessary to continue providing reliable service and expand its customer assistance programs.
“Our responsibility is to deliver safe, reliable energy to our customers every day. Texas Gas Service carefully considers rate case filings and customer impact,” the company said in an emailed statement. “We filed this rate case to recover the changes in our cost of service over the past three years (since the last rate case in El Paso) that are necessary to support growth in the region and provide dependable service to the community. The filing also allows us to offer more customer assistance programs and request the elimination of payment convenience fees.”
TSG’s filing includes a recommended customer assistance rate 25% below the proposed small residential rate and a larger contribution to its “Share the Warmth” program, which was designed to assist low-income Texans with paying winter heating bills.
Additionally, the company’s proposal looks to unify its rate structure across the state.
“Right now, customers in different areas pay different rates for the same service,” the email stated. “By consolidating into a single statewide rate, future cost of service changes will impact our customer base consistently statewide.”
The city, however, will be evaluating how much profit TSG stands to rake in from the rate hike and whether it’s reasonable for the company to consolidate its three service areas, a move that would see El Pasoans footing the bill for expenses incurred as far away as Austin and Port Author, roughly 755 miles away.
“Protecting El Pasoans from unnecessary cost increases is a top priority,” Nieman said. “We’ve consistently demonstrated that thoughtful, expert-led intervention can make a meaningful difference for our community.”
Similar to the City Council’s move on El Paso Electric’s plan to raise rates, a decision on TSG’s proposal will be made in 90 days. After that, it will be reviewed by the Texas Railroad Commission, which has the final say over the rate increase.
If both increases are allowed to proceed as proposed, El Pasoans could be looking at an additional $32 a month — nearly $400 annually — for gas and power.
The City Council’s final decision is expected before Nov. 17.
Adam Powell covers government and politics for the El Paso Times and can be reached via email at apowell@elpasotimes.com.