Title
Approving a resolution suspending the August 19, 2025 effective date of Texas Gas Service Company's requested increase to permit the City time to study the request and establish reasonable rates; approving cooperation with other cities in the Texas Gas Service Company's service area; hiring legal and consulting services to negotiate with the Company and direct any necessary litigation and appeals; authorizing intervention in Texas Gas Service's statement of intent to change gas utility rates at the Railroad Commission; requiring reimbursement of cities' rate case expenses; finding that the meeting at which this resolution is passed is open to the public as required by law; requiring notice of this resolution to the Company and legal counsel.
Summary
On June 30, 2025, Texas Gas Service Company (“TGS” or “Company”) a Division of ONE Gas, Inc. (“ONE Gas”), pursuant to Subchapter C of Chapter 104 of the Gas Utility Regulatory Act, filed its Statement of Intent to change gas rates at the Railroad Commission of Texas (“RRC”) and in all municipalities exercising original jurisdiction within the incorporated areas of the Central-Gulf, West North, and Rio Grande Valley Service Areas, effective August 19, 2025.
The resolution suspends the August 19, 2025 effective date of the Company’s rate increase for the maximum period permitted by law to allow the City, working in conjunction with other similarly situated cities with original jurisdiction served by TGS, to evaluate the filing, to determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement, to pursue.
If the City fails to take some action regarding the filing before the effective date, TGS’s rate request is deemed approved.
Prior City Council Action
N/A
Deadline for City Council Action
August 19, 2025
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: ____________
Amount: ________
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required __ Date Completed: ___________
Supporting documents attached:
Texas Gas Service Suspension Resolution
Texas Gas Service Suspension Information Sheet
Recommended Action
Approve the resolution suspending the August 19, 2025 effective date of Texas Gas Service Company's requested increase.