The El Paso City Council has officially denied Texas Gas Service’s proposed rate increase.
The City Council voted unanimously during its meeting Monday, Nov. 17, to reject TGS’s proposed 27% rate hike, which would see monthly bills increase by roughly $14. The company’s proposal would see El Paso customers paying higher rates, while other parts of the state would see monthly rates decrease.
The vote comes after months of analysis from the city, which, from the start, indicated that it would oppose the increase.
“City Council has been clear from the start: any increase must be justified, data-driven, and equitable,” City Attorney Karla Nieman said in a news release. “This Council is standing up for working families by rejecting a proposal that would have unfairly shifted costs from other regions of Texas onto our community. We remain committed to advocating before the Railroad Commission to ensure that El Paso residents are treated fairly.”
The city’s formal denial of the company’s proposed rate hike is only one step in the process. The final decision on TSG’s increase, which the company has asserted is needed to offset a $41.1 million revenue deficiency, is expected from the Railroad Commission of Texas by January 2026.
Legislators log opposition to rate hike
While City Council members had for months signaled that they would oppose TGS’s proposed rate hike, which would see El Paso customers subsidizing costs in other parts of the state, El Paso lawmakers stepped in with their own opposition.
In a letter Monday, El Paso’s delegation to the Texas House of Representatives stated clearly that El Pasoans “can’t afford an increase.”
The legislators — state Reps. Joe Moody, Mary Gonzalez, Claudia Ordaz, Vince Perez and Eddie Morales Jr. — noted that the TGS proposal comes at the same time that El Paso Electric is looking to raise prices, increasing “the monthly cost for every basic necessity” in the area.
“The increase isn’t because of higher costs at home,” the legislators wrote. “TGS wants to combine its three service areas into one statewide structure, which its own filing shows accounts for nearly $30 million of the $41 million increase. In other words, families in the Rio Grande Valley would see a double-digit reduction in what they pay while those in El Paso pick up the bill for them.”
“Those costs and TGS’s proposal to increase the fixed monthly charge for every household will put the highest financial strain on the lowest-income households, including our seniors.”
State Sen. Cesar Blanco, D-El Paso, also weighed in, saying in a letter to TGS President Robert McAnnally that he had “serious concerns about the scope of this proposal and its impact on El Paso households, particularly those already facing significant financial strain.”
“Families across our region are managing rising costs for utilities, groceries, housing, and basicnecessities,” Blanco wrote. “Property valuation increases, inflation, and other utility adjustments have already placed added pressure on household budgets. An additional natural gas rate increase, especially only three years after the last adjustment, would further burden residents who are already stretched thin.
“I respectfully urge Texas Gas Service to give these concerns serious consideration and work toward a balanced approach,” he added, “One that supports necessary infrastructure investment while safeguarding customers from undue and disproportionate burdens, particularly those originating from other regions of the state.”
What’s next?
While the TGS proposal now moves to the Railroad Commission for a final decision, the city continues its work engaging in settlement negotiations “to explore alternatives that could result in fair and balanced outcomes for local ratepayers,” according to a city news release.
“Residents made their voices heard throughout this process, and I want to thank every El Pasoan who spoke up,” Mayor Renard Johnson said in the Monday release. “Today’s decision reflects that input and reinforces our duty to protect fairness, transparency, and accountability for every household and business in our city. We will not allow El Paso families to be overcharged to subsidize other regions. We will continue to stand up, push back when necessary, and defend what is right for El Paso.”
Adam Powell covers government and politics for the El Paso Times and can be reached via email at apowell@elpasotimes.com.
This article originally appeared on El Paso Times: El Paso City Council rejects Texas Gas Service’s proposed 27% rate hike
Reporting by Adam Powell, El Paso Times / El Paso Times
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