What happened?
On June 3, Texas Gas Service released a statement of intent about the rate increases to municipalities within the Austin area.
According to the statement, the changes will go into effect July 8.
However, some cities, such as West Lake Hills, Bee Cave and Pflugerville, have passed resolutions to suspend the changes for an additional 90 days to review the terms. If a city does not take action within that period, the rate increases will be implemented, according to city documents.
The details
Depending on the size of the residential property, customers of TGS can expect to pay an average of $6.26 to $9.53 more on their monthly bills.
According to TGS, the affected service area includes the following cities:
- Austin
- Bastrop
- Bee Cave
- Cedar Park
- Dripping Springs
- Georgetown
- Hutto
- Lakeway
- Pflugerville
- Rollingwood
- Sunset Valley
- West Lake Hills
The proposed rate increases are intended to recoup over $25.7 million in revenue lost from both COVID-19 and Winter Storm Uri maintenance costs, according to the statement.
Additionally, the service cites recent inflation rates, supply chain issues, labor shortages and ongoing infrastructure improvements as other reasons for the increases.
