Gas Customers Slated To Pay More Every Month

Texas Gas Customers will pay more for their service every month.

After months of negotiations, the City of El Paso has granted the company a rate increase.

When a local utility is within city limits and wants to raise rates, they need approval from city council, the local regulating body for the companies.

In May, Texas Gas Service asked city council for permission to do just that but the city was not on board. Representatives said Texas Gas’ proposed increase was too high.

The company said they need the extra money for capital improvements, like new pipelines and plant additions they conducted between June and December of last year.

Norman Gordon, the city’s consultant on utility matters said that in the initial proposal, Texas Gas inapproprately included improvements made before June 2010.

Officials with the company said they had ‘philosophical differences’ with the city about what should be included in the rate increase proposal.

After council rejected the company’s proposal, Texas Gas removed those improvement charges and the two sides agreed on an increase.

Residential customers will pay an extra $.31 a month. Commercial customers will pay an additional $1 a month.

City Representatives Emma Acosta and Eddie Holguin voted against the increase. “It’s an investment that they have to make in El Paso but they also have a monopoly in El Paso and I would hope that they would have considered that because the profits that they do make our from El Pasoans”, said Acosta.

Company officials said the increase was necessary. “This is money that has already been spent to provide for the growth here in El Paso and it’s also to expand our system and it’s also to make our system more reliable,” said Pete Parraz, Community Relations Manager with Texas Gas Service.