AUSTIN, Texas — Austinites using a private gas service company won’t yet have to worry about increased prices.
After more than a year of discussions, Austin City Council recently declined a raise in costs for Texas Gas Service users, according to KUT.
The company wanted to hike resident gas bills by roughly 15%, while at the same time lowering these fees for commercial and industrial customers. It said the increase was suggested to sustain business amid inflation and to invest in the services’ infrastructure.
Council members disagreed with this original plan, so Texas Gas Service offered a second option, which would lower the businesses’ income earned from customers by roughly 25%.
The new plan would also remove its offer of cheaper prices for non-residential users, but it would help earn money for shareholders in the company. Despite these possible changes, KUT said costs were still too high for council members to agree upon.
Without a finalized decision, the future of Austin’s natural gas prices is likely up to the Railroad Commission of Texas (RRC), a state regulatory group that has been in business for more than 130 years.
The agency is headed by Republican chairman Christi Craddic along with two commissioners. Even with the possibility of the RRC’s decision, some believe Austin has other alternatives.
While the city is currently under contract with Texas Gas Service, this agreement ends in two years, and a new partnership could then be established.
Alternatively, Austin might be able to purchase the gas system as a whole, similar to its operations with Austin Electric.
Despite several options, the future of Texas Gas Service prices remain uncertain.