Title
Approving a resolution denying Texas Gas Service Company proposed rates.
Summary
On June 30, 2025, Texas Gas Service Company (TGS or Company) filed a Statement of Intent to Increase Rates application with each of the cities in their Central-Gulf, West North, and Rio Grande Valley service areas. In the filing, the Company asserted that it is entitled to a $41.1 million increase or a 9.83% increase over current adjusted revenues, excluding gas costs.
In June, the Cities Served by Texas Gas Service Company (TGS Cities) engaged the services of consultants to review the Company’s filing. The consultants identified numerous unreasonable expenses and proposed significant reductions to the Company’s request. Accordingly, TGS Cities’ attorney recommends that all TGS Cities members adopt the Resolution denying the rate change. Once the Resolution is adopted, TGS will have 30 days to appeal the decision to the Railroad Commission where the appeal will be consolidated with TGS’ filing for the environs and those cities that have relinquished their jurisdiction (i.e. Gas Utility Docket 28202) currently pending at the Railroad Commission.
Under the law, cities with original jurisdiction over this matter have 125 days from the initial filing to take final action on the application. By the agreement of the parties, this deadline was suspended until November 17, 2025. As such, all cities with original jurisdiction will need to adopt the resolution no later than November 17.
Prior City Council Action
N/A
Deadline for City Council Action
October 28, 2025
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: N/A
Amount: N/A
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: ___________
Supporting documents attached:
Texas Gas Service Denial Resolution
Recommended Action
Approve the resolution denying the Texas Gas Service Company's proposed rates.