AUSTIN--(BUSINESS WIRE)--A coalition of more than 150 cities called upon state lawmakers on Sunday to reject legislation that will increase natural gas utility charges in Texas.
According to the coalition, Senate Bill 1309 and House Bill 2435 would tilt the regulatory process at the Texas Railroad Commission in favor of the state’s natural gas utilities and against home consumers. The bills remain under consideration in the 82nd Texas Legislature. House Bill 2435 could come up for consideration as soon as Monday on the floor of the Texas House of Representatives.
“Although filed with the best of intentions, our analysis shows that SB 1309 and HB 2435 will tend to increase charges on natural gas utility bills,” said Jay Doegey, co-chairman of the Atmos Cities Steering Committee (ACSC), the city coalition that issued the action alert. He said the authors of both bills have worked hard to improve them, but that as currently written they still significantly erode customer protections. “Unfortunately, these bills will make it easier for utilities to hike base rates, while at the same time avoiding substantive regulatory review,” he said.
The ACSC represents the interests of cities and their citizens in rate proceedings the Texas Railroad Commission. The coalition’s membership includes 154 cities with more than 1 million natural gas customers, making the ACSC one of the most significant groups advocating for consumers at the agency.
The bills are being pushed hard at the Texas Capitol by lobbyists representing monopoly gas utilities. Because these companies are free from all the competitive pressures that otherwise would force them to keep a lid on prices, Texas law requires them to seek authorization from regulators at the Railroad Commission before increasing their base rates.
But Doegey warned that under HB 2435 and SB 1309, utilities could pursue a regulatory scheme whereby they adjust those rates for isolated changes in any part of their business — expenses, revenues or investments. “While this may seem innocuous, the actual effect would be to remove from consideration certain utility savings and other factors that could eliminate the need for rate increases,” Doegey explained.
He also said that both bills represent an expansion of an anti-consumer ratemaking scheme known as the Gas Reliability Infrastructure Program, which already exists at the Railroad Commission. GRIP has led to repeated increases in portions of home gas bills — including a 2,200 percent increase in charges associated with certain meters operated by Atmos Pipeline-Texas. These GRIP increases came without substantive regulatory review by the Railroad Commission.
“Texas consumers don’t need any more bad news, so please contact your local lawmaker and urge them to reject Senate Bill 1309 and House Bill 2435,” said Doegey.
You can find contact information for your local lawmaker at http://www.fyi.legis.state.tx.us/ You can find more information about the ACSC, and a copy of its recent study on the Texas Railroad Commission, at http://texasgasconsumers.org/.