Texas State Natural Gas to increase gas rate for all City customers

By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.

Eagle Pass City Manager Gloria Barrientos received a written notice by Texas State Natural Gas, Inc. (TSNG) for rate increase of natural gas prices to all City of Eagle Pass customers serviced by the local gas company, owned by the Libson family, to become effective June 1, 2014.

The proposed natural gas rate increase includes all residential and commercial customers as well as local industrial and public authorities served within the City of Eagle Pass.

The increased rate proposal is being made by TSNG pursuant to Rate Schedule 16-Rider COSA  through the Texas Administrative Code/Texas Utilities Code, §101.003.

The new proposed natural gas rate increase is the second increase for local customers within the City of Eagle Pass during the past three years.  Back on February 1, 2011, the Eagle Pass City Council unanimously approved TSNG’s first natural gas rate increase of four percent (4%) as no local citizens appeared before City Council to express their concerns or questions regarding said increase.  During February 1, 2011, TSNG general manager Carlos Libson stated that the the four percent (4%) rate increase would increase local natural gas customers’ monthly bill by an average of $5 dollars per account.

The Eagle Pass City Council discussed the new rate increase proposal by TSNG at their special meeting held on Tuesday, June 17, 2014, as part of their agenda.

During the discussion, City Manager Gloria Barrientos informed City Council of the official notification received by her office from TSNG announcing a second rate increase and discussed the basis for the new rate increase proposal  Barrientos advised the City Council that the item on the agenda was only for the City Council’s acknowledgement of receipt of notification of the proposed rate increase.

The City Council voted unanimously to acknowledge receipt of notification of TSNG’s proposed natural gas rate increase.

The new proposed rate increases by classification include residential customers getting a 46 cents increase per bill, an increase of 1.3 % from their last bill to become effective September 1, 2014;  Small commercial customers will see an increase of $9.69 per bill,an increase of 2.4% ‘ the Public Authority (Schools) customers average bill will see an increase of $6.51 dollars per bill, a 2.3% increase; and the large commercial customer average bill will receive an increase of $147.16 per bill, a 2.6% increase.

The total amount of increased revenues for TSNG as a result of these rate increases is of $47, 167, a 1.8% increase. Of this amount, a total of $44,650 is from inside City limits customers.

Texas State Natural Gas Inc. has filed their statement of intent to increase its distribution gas sale rates to its customers within the municipality boundaries of Eagle Pass, Texas, pursuant to rate schedule 16 Rider COSA(Cost of Services Adjustment), which was approved by the City of Eagle Pass under ordinance 2011-02. TSNG is a gas distribution subject to regulation under the Texas Utility Code,  In 2013, TSNG distributed natural gas to an average of 2,888 customers in the city.  Pursuant to 103.001 of the Texas Utility Code, TSNG’s rates for services within incorporated areas are subject to the original jurisdiction of the municipality in which the service is provided.

The citizens of Eagle Pass are encouraged to express their sentiments and concerns regarding the proposed natural gas rate increases  by TSNG at the next City Council meeting or by speaking to their Mayor or City Council members.