PREVIEW: League City officials to vote on rejecting $34 million rate increase

The Texas-New Mexico Power Company wants to raise League City’s rates by $34 million, which is a 6% increase from its current rate, but city officials will soon vote on a motion on whether to reject the power company’s rate increase.

Why it matters

If League City City Council rejects the rate increase, the company would be required to reimburse the city as far back as Nov. 14, which is when the increase was filed, according to city documents.

For a resident using 1,000 kWh per month, the rate increase would bump their bill up by $5.50, according to city documents.

The company asserts that the rate increase is driven primarily by its capital investment and increases in its costs since its last rate case, according to city documents.

What else?

Other items on the agenda include approving the purchase of new vehicles and equipment for the League City Police Department and new street lighting, according to agenda documents.

The city will also consider authorizing an advance funding agreement with the Texas Department of Transportation for the construction of the State Hwy. 96 at Columbia Memorial Parkway and SH 96 at FM 270 Intersection Improvements Project.

Stay tuned

City Council will meet at 6 p.m. Dec. 16 at Council Chambers, 200 W. Walker St., League City.