Austin Residents Unite in Opposition to Texas Gas Service Rate Hike

Austin Residents Rally Against Gas Rate Increase

AUSTIN, Texas – The City of Austin is standing alongside more than a dozen other cities to oppose a proposed rate increase by Texas Gas Service. During a recent public hearing at the City Council meeting, residents gathered to express their concerns about the potential hike in natural gas rates.

Outrage Over Proposed Increase

One resident voiced their opinions strongly, stating, “Let me begin by stating how outrageous the rate increase is. If the gas company wins its proposal, it would increase residential rates by 105 percent since 2019. This will be over $300 per year per residential customer.” This sentiment echoed among many attendees, who believe that the proposed increase will put an unnecessary financial burden on households across the city.

Concerns About Rate Structure

Residents brought data to support their arguments against the proposed rate increase. Another resident highlighted, “Not only are the rates too high, but they are poorly structured. They are regressive. The more you use, the less you pay per unit. This discourages energy conservation, and it hurts the poor who generally use less energy.” Such statements underline the fears that the new rates might disproportionately affect lower-income families.

Projected Rate Changes

The proposed adjustments could lead to an average increase of around 14% for residential customers, while commercial rates might see a decrease ranging from 2% to 6%. This mix of changes has further fueled residents’ frustrations, as they feel it benefits businesses at their expense.

Reasons Behind the Proposed Increase

According to comments from residents, the increase is partly due to new growth across Texas that has caused existing customer gas rates to rise. One resident stated, “In the case of TGS, new growth across Texas has caused existing customer gas rates to increase, which explains a lot about why gas rates have doubled in the last five years. It seems the city needs to get serious about studying a way out of this situation with the franchise renewal coming up.”

Austin Joins Forces

Austin is one of 17 cities in a coalition opposing the rate increase proposed by Texas Gas Service. Council member Ryan Alter commented, “This is the motion that I posted on the message board and, as I mentioned there, I do not believe, and I cannot support the settlement that has been put forward.” He clarified that the city council needs to deny the application of Texas Gas Service to protect the interests of residents.

City Officials Weigh In

Austin’s Mayor, Kirk Watson, also echoed similar sentiments, noting that the council must consider the potential impact on residents if they accept the proposed changes. “For clarity purposes and for the public, if this amendment goes on, what the city council would be doing is technically denying the application of Texas Gas Service,” he stated.

Texas Gas Service’s Position

Texas Gas Service responded through a statement, emphasizing that “Our top priority is maintaining a safe and reliable natural gas system for our customers.” They argue that their rate adjustments reflect the costs needed for maintenance and improvements to their infrastructure. They urged customers facing financial hardship to come forward for help, highlighting resources available on their website.

Final Thoughts

As the Austin City Council continues to deliberate over the proposed rate hike, residents are hopeful that their voices will lead to a satisfactory outcome. The debate remains crucial as it impacts the daily lives of many families in Austin, highlighting the importance of fair utility pricing in an evolving economy.