The gist
In July, the TGS rolled out a gas rate increase that would cost residential customers an additional $6.26 to $9.53 more on their monthly bills, depending on property size.
This increase would impact the entire Central Gulf Service area, which includes most of Central Texas.
Bee Cave, along with dozens of other cities, passed resolutions to suspend the changes for 90 days to review the reasonability of the new rate.
After consulting with an attorney, the city of Bee Cave determined the higher rates are "unreasonable," according to a staff report.
The reason
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 a statement from the TGS.
Additionally, the service cites recent inflation rates, supply chain issues, labor shortages and ongoing infrastructure improvements as other reasons for the increases.
What's next
Bee Cave spokesperson Crystal Cotti said the city expects a settlement to be reached by November.
"We still anticipate a [rate] increase, but not as much as it would have been if we didn't pursue legal action," Cotti said.
The city's legal fees will be reimbursed by the TGS.
