by Andy Sevilla
Texas Gas Service customers in Kyle will pay a little more for natural gas in their monthly bills after council members approved a rate increase for residential and commercial patrons.
On the heels of two consecutive rate jumps, Texas Gas Service (TGS), a division of the Tulsa-based ONEOK, Inc., requested approval of a new tariff adjusting its base rates to recover the costs of capital investment in their system in 2012.
The Gas Reliability Infrastructure Program (GRIP), created by the Texas Legislature in 2003, allows a gas utility to solicit rate increases for five years before needing to appeal the price jumps to the Texas Railroad Commission for review.
Kyle council members voted 4-1 in favor of the price jump at their May 14 meeting, with Council Member David Wilson opposing the proposed tariff, before the council approved the measure in their consent agenda at their June 4 meeting.
Wilson’s May 14 opposition stemmed from him questioning the necessity for higher prices after he said the cost of fuel went down.
A TGS representative told council members that the company invested $29.5 million in infrastructure improvements, and that the proposed tariff, under the auspices of GRIP, would allow the company to recover some costs.
According to city documents, there are 343 TGS residential customers in Kyle who will see their average monthly bill increase by $1.29; meanwhile the 23 commercial customers will see an average monthly price hike of $4.82.
Last year, TGS residential customers saw an increase of $1.21 in their average monthly bills; and in 2011, the customers experienced a $1.12 price jump.
The 2013 rate increased approved by council will take effect retroactively on the proposed effective date of May 27, according to the city ordinance.
TGS first asked for the rate increase on Feb. 11, but at their March 5 meeting, council members suspended the interim rate jump while the city of Austin reviewed the request for compliance with state law.
Kyle is grouped into a service area that includes a second Hays County city – Dripping Springs – as well as Austin, Sunset Valley, Rolling Wood, Westlake Hills, Lakeway and Cedar Park.
The GRIP allows a municipality to suspend the proposed rate 45 days for review.
Based on Austin’s review of the requested rate increase, the infrastructure improvement projects were all found to be in compliance and the rate increase calculations were found to be accurate.
