Texas Gas Service has announced its plans to increase rates for its residential customers.
The move comes as TGS is consolidating its service areas in Central and South Texas. They’ll adjust rates to pay for the cost of building, operating and maintaining the natural gas distribution infrastructure.
“Texas Gas Service does not make money on the natural gas used,” said the company in an email to KVUE.
How the rate change will impact your bill:
- Residential customers inside the city of Austin and the other cities in Central Texas – $4.49 per month increase
- Residential customers in Central Texas outside city limits – $10.72 per month increase,
- Commercial customers in Central Texas – decrease ($3.51)
- Large commercial customers in Central Texas – decrease ($308.27)
The KVUE Defenders compared the increase to current rates.
The $5-10 dollar rate hike is an increase of 23.6 percent to 84 percent. Meanwhile, commercial went down almost 5 percent. Large commercial clients will get their charge cut by almost half.
“The commercial customer costs are decreasing because of a determination and cost causation study. One part of a rate case is determining the costs that need to be recovered. Another part is designing rates that recover those costs fairly from all customers, based on how different customer groups cause costs. An economic and engineering study is conducted to help determine cost causation. The current study indicates that commercial customers are already paying their share of costs,” said Texas Gas Service in a memo.
Public comments are open till Sept. 11 at the Railroad Commission. The rates are set to increase this fall or early next year.
(© 2016 KVUE)