City denies Texas Gas Service’s proposed 27% rate increase
EL PASO, Texas (KVIA) -- El Paso City Council voted today to deny Texas Gas Service's proposed 27% rate increase. This follows public hearings in which residents heard from both gas service and city staff on the proposed rate increase.
"The Council’s action reinforces its commitment to protecting El Paso ratepayers from unjustified utility hikes and ensuring gas rates remain fair, transparent, and based on the true cost of service in this region," a city spokesperson said.
The city's financial and legal experts weighed in on the matter, and impacted the city council's decision, the spokesperson said. Community feedback from the eight public hearings also made an impact, officials say.
“City Council has been clear from the start: any increase must be justified, data-driven, and equitable,” said City Attorney Karla Nieman. “This Council is standing up for working families by rejecting a proposal that would have unfairly shifted costs from other regions of Texas onto our community. We remain committed to advocating before the Railroad Commission to ensure that El Paso residents are treated fairly.”
The gas service is looking to consolidate its current West Texas, Central Gulf, and Rio Grande Valley regions into a single statewide rate structure. The City of El Paso believes this change would shift a disproportionate share of system costs to El Pasoans.
After today's vote the city has formally denied the requested rate increase, and the case now proceeds to the Railroad Commission of Texas. The commission is expected to make a decision by January 2026.
