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Texas Gas Service rate hearing at Council this Thursday – Austin Monitor

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Texas Gas Service rate hearing at Council this Thursday – Austin Monitor


Wednesday, August 28, 2024 by Jo Clifton

City Council will host a hearing on Thursday to allow members of the public, particularly customers of Texas Gas Service, to voice their opinions about a large rate increase the utility is proposing. The city has also joined a coalition of cities seeking to convince the Texas Railroad Commission, which makes the final decision about gas rates, to lower the increase that TGS seeks.

Consumer advocate Paul Robbins plans to be on hand for the item, which is on Thursday’s City Council agenda. He has prepared a lengthy explanation of the utility’s proposed rates and compared them with rates charged by CPS Energy in San Antonio. According to Robbins, if Texas Gas Service “gets its proposed rate increase, its residential rates per customer will have risen 105 percent in six years. Inflation between 2019 and 2024 was 23 percent.”

He noted that CPS Energy in San Antonio has had a net rate increase of 7 percent since 2014. Over the 10 years between 2014 and 2024, inflation was 33 percent when the new 2024 rate went into effect, he said.

“I do not believe San Antonio charges any taxes and fees,” he said, concluding, “So the current annual rate of $290 a year (for CPS) is less than half of the proposed rate increase from TGS at $596 a year.”

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Safeena Walji, public relations manager for Texas Gas Service, told the Austin Monitor, “Texas Gas Service rates have been determined to be fair and reasonable. According to an internal rates analysis, the average monthly Texas Gas Service bill for Austin residents this year is $60.58, including all taxes and fees. Our rates are set through a rigorous review process conducted by the cities we serve and the Railroad Commission of Texas, making sure any adjustments are just and necessary to cover the costs of providing safe and reliable service.”

Robbins notes that Texas Gas Service has invested heavily in its infrastructure – he said those costs increased by 63 percent in a four-year period. He concludes that the infrastructure investment was the major cause of rate increases over the past five years “even though the company’s residential customer base grew by only 5 percent between 2019 and 2023.”

Walji said, “Our rate adjustments reflect the actual costs of maintaining and improving our infrastructure, including significant safety, reliability and efficiency investments.”

Even though Texas Gas Service is proposing a rate increase for residential customers, it is at the same time proposing to cut rates for industrial and commercial customers, Robbins noted. “TGS proposes a 31 percent increase in residential rates, while proposing a 34 percent decrease for industrial customers and a 7 to 9 percent decrease for commercial customers,” he said.

Robbins also complains that the TGS rate structure hurts lower-income people and discourages conservation. He notes, “Low-income utility customers use less energy than average because they have less disposable income.” He provided a chart from the U.S. Energy Information Agency’s residential energy consumption survey for 2020 in southern states. That chart clearly shows the link between income and residential energy consumption, with residents having the highest incomes also using the most energy and those with lower incomes using less energy. Robbins notes that both Austin Energy and Austin Water have progressive rate structures, charging those who have the highest consumption more than those who have lower consumption.

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Austin Energy and Austin Water collectively spend at least $22 million a year in discounts to low-income customers, Robbins noted.

Austin Water rates for residents on the Customer Assistance Program are lower for people using the least amount of water. The opposite seems to be true for Texas Gas Service customers. There are no charts for the TGS customer assistance program for low-income customers, Robbins said, simply because TGS does not have one.

Walji disagreed, saying, “We’re committed to supporting our low-income customers and promoting conservation. Programs like ‘Share the Warmth,’ which we support annually, help with utility bills and encourage customers in need to apply for funds through community partners. These funds are often still available at the end of the year. Our Energy Efficiency program also aids in appliance repairs and updates. These initiatives keep bills manageable, promote energy conservation, and address concerns about their impact on low-income customers and sustainable practices.”

She also said the utility had surveyed its customers in Travis, Williamson and Hays counties, with 64 percent indicating “high trust in their utility to set fair and reasonable rates.” She concluded, “90 percent of responses indicated positive overall satisfaction.”

Austin, as part of the coalition of 17 cities referred to as TGS cities, has legal counsel and rate experts working on the rate case. In July, Council approved a delay that will allow the legal counsel and outside experts to determine their strategy in representing the city, according to materials related to the Council agenda. That material notes that “complaints from TGS customers residing in Austin have triggered the city’s obligation to hold a public hearing.”

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Even though Council is holding a hearing on Thursday, they will not be voting on TGS rates for quite some time. Their legal team, led by Thomas Brocato, will meet with lawyers and consultants for TGS and staff of the Railroad Commission, with the goal of reaching an agreement on rates. Should they come to an agreement, Brocato will advise Council, who will then vote on whether to approve the agreement. If they approve it, the matter will go before members of the Railroad Commission for their approval. If Council does not approve the agreement, the matter will still go to the Railroad Commission, but the process will likely take longer. Regardless, nothing is expected to come back to Council before November.

Photo made available through a Creative Commons license.

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.

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Austin, TX

Texas ban on selling smokable cannabis takes effect March 31

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Texas ban on selling smokable cannabis takes effect March 31


Smokable cannabis products must be removed from Texas stores by the end of the month under new rules adopted by the state’s health department.

Virtually all edible hemp products will still be allowed with stricter packaging and testing requirements. But sharply higher fees on retailers and manufacturers, while lower than initially proposed, could lead to more expensive products or force some companies out of business.

The sweeping regulations for the state’s hemp industry were first recommended in December. They were created based on an executive order issued by Gov. Greg Abbott after the Texas Legislature couldn’t agree whether to regulate THC products more strictly or ban them entirely.

Last week, the Texas Department of State Health Services adopted its final version of the rules and said they would take effect March 31.

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The new regulations effectively ban the sale of smokable hemp and extracts by changing how DSHS measures Delta-9 THC, the primary psychoactive ingredient in cannabis.

Michael Minasi

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KUT News

Live resins and rosins extracted from cannabis, such as these sold at Austin’s ATX Organics, have become popular in part because they’re faster acting and easier to dose than edible hemp products.

Under the state’s 2019 hemp law, cannabis with no more than 0.3% Delta-9 by dry weight is considered legal hemp.

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The adopted DSHS regulation includes a new “total THC” rule, which counts a cannabis compound known as THCA in the Delta-9 calculation. THCA converts to Delta-9 when heated or smoked, which is why a product known as THCA flower has become widely popular in Texas.

During the public comment period, hundreds of people told DSHS they oppose counting THCA as Delta-9. THCA is not explicitly banned by state or federal law.

In its response, DSHS said the “total THC” policy follows existing state and federal regulations, which are the rules written by government employees tasked with interpreting law.

The Texas Agriculture Commission adopted regulations in 2020 requiring that tests account for the potential conversion of THCA to Delta-9. The U.S. Department of Agriculture proposed a similar rule on the last day of President Trump’s first term. The rule was adopted two months later by the Biden administration.

The state’s new hemp regulations slash a proposed 10,000% increase in the annual fees charged to retailers and manufacturers of what Texas calls “consumable hemp products.” But the adopted fees — $5,000 per year for each retail location and $10,000 per year for each manufacturing facility — are still 33 and 40 times higher, respectively, than existing levies.

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More than 9,100 retail locations in Texas are registered to sell consumable hemp products, according to state health records.

Smoke ATX off of West Slaughter Lane pictured on Monday, July 21, 2025, in Austin.

Michael Minasi

/

KUT News

Smoke ATX off of West Slaughter Lane is among 9,100 locations registered with the state to sell hemp products. The annual fee for hemp retailers will increase from $150 per location to $5,000 under the new rules adopted by DSHS.

Some retailers say the fees are still crippling, especially coupled with the new prohibition on smokable products.

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“It’s a high rate, but it would still be feasible, but then we come into the [THCA] regulations,” said Estella Castro, owner of the hemp store Austin Cannabis Co. “If you don’t have the flower, and the flower is going off completely, I don’t think you’re going to have the $5,000.”

Castro said smokable products account for about 40% of her sales.

Cannabis advocates say they are glad to see new product recall standards and a process to track consumer complaints, but they believe high licensing fees and a ban on flowers and extracts will power up the unregulated market.

“We know that consumers will be able to still acquire these products either from out of state operators who are not restricted by DSHS regulations or from the illicit market, which causes the most concern for us,” said Heather Fazio, who leads the Texas Cannabis Policy Center. “The illicit market doesn’t have age restrictions. It doesn’t have safety mechanisms and consumer protection.”

The new DSHS rules only affect the manufacture, distribution and sale of hemp products. They don’t affect state law allowing for possession of them.

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Mark Bordas, head of the Texas Hemp Business Council, compared the $10,000 fee annual on hemp manufacturing facilities to the Texas Alcoholic Beverage Commission’s fee on distillers: $3,000 every two years.

“Our concern is some of these measures are so draconian that you are going to drive people out of the business and then folks’ access to the products,” Bordas said. “Invariably, we’re going to have to bring forth a [lawsuit], and the state has to defend what it’s done, and that’s taxpayer money, and it’s a waste.”





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Austin, TX

3 Top Texas Longhorn Recruiting Targets Were Blown Away By Their Visits to Austin

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3 Top Texas Longhorn Recruiting Targets Were Blown Away By Their Visits to Austin


The Texas Longhorns continue to do everything they can to better their team for the future, including dominating on the recruiting trail with some of the most sought-after prospects in the country.

Their latest installment comes after extending offers to offensive lineman Ty McCurry and Jayden Thompson, while also leaving a favorable impression on premier recruit Brayson Robinson.

As they continue to make a push for another top-10 class under head coach Steve Sarkisian, the Longhorns made a staunch impression on three of their top targets for the 2028 cycle.

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Forty Acres Stands Out

Texas Longhorns defensive back Kobe Black (6) and teammates react after making an interception during the second half against the Texas A&M Aggies at Darrell K Royal-Texas Memorial Stadium. | Scott Wachter-Imagn Images
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The Longhorns continue to make a push on the recruiting trail, hosting some premier targets on the first day of spring camp, and extending offers to McCurry and Thompson. Both players were impressed with what they saw, not just on the football field, either, but from the Forty Acres as well.

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“They said I’m their top guy and that they want me back out for a visit soon. “McCurry tells me of his conversations with the Longhorns before continuing on where they stand in his rankings. “I’ve loved the past two times I’ve been in Austin to check out the Longhorns and can 100 percent see them being a contender in my commitment down the line.”

McCurry was a Sports Illustrated freshman All-American and currently stands at 6-foot-6 and 270 pounds, currently holding 11 offers with many of them coming from the Lone Star State. The other offer from the first day of practice went to Jayden Thompson, number 15-ranked offensive tackle in the 2028 class according to 247Sports.

“My conversations with the coaches went very well, they were all very inviting and helpful,” Thompson told Texas Longhorns On SI of the Longhorns staff. “If I had one takeaway, it would be the tour of not just the football part of the school, but the campus as well.”

Another target for the 2028 cycle is Brayson Robinson, an edge defender out of Mavel, Texas. While he didn’t receive an offer yet, he has quickly garnered interest with some of the top programs in the country. The Arizona State Sun Devils and Alabama Crimson Tide have been on him mainly, but he’s hearing from a lot of schools, including the Longhorns, who impressed him.

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“It went amazing and I like how every coach introduced themselves to my family and me,” Robinson told Texas Longhorns On SI about his visit. “I also love the culture.”

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With still a while to go until the 2028 cycle becomes the forefront on the recruiting trail, Sarkisian and his staff continue to set themselves up to be at the top of the conversations regarding the premier talent on their target board.



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Severe storms possible in Austin midweek. Here’s what to expect and timings.

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Severe storms possible in Austin midweek. Here’s what to expect and timings.


So far this month, Austin’s main weather observation site at Camp Mabry has recorded 0.7 inch of rain, but the year overall has been dry. Since Jan. 1, we’ve recorded just over 2.5 inches of rainfall, which is about 2.75 inches below normal at this point in the year.

While the weekend rain wasn’t exactly a drought-buster, we can still keep our hopes high — or, in the words of a classic infomercial: “But wait … there’s more!” 

Morning: We’ll wake early Tuesday under dark and cloudy skies, as the sun doesn’t rise in Austin until 7:46 a.m. because of daylight saving time. Temperatures will be near 70 degrees, but don’t expect the same foggy start we saw Monday. Winds will be a bit gusty out of the south, which will help keep the low-level moisture mixed and prevent it from settling in and creating a layer of fog. 

Midday: Sprinkles or light showers are possible through midday, but the heavier rainfall will hold off during the morning. The upper-level low pressure system approaching from the west will help produce active weather across West Texas during the first half of Tuesday. 

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Afternoon: However, across Central Texas an atmospheric lid, known as a capping inversion, will remain in place until surface temperatures warm up enough for rising air to break through the “cap.” Once that happens, the atmosphere will gradually destabilize through the afternoon and evening, allowing rain and thunderstorms to develop.

Breezy south winds will continue throughout the day, with gusts up to 25 mph. Afternoon temperatures are expected to climb into the upper 70s and lower 80s.

Once the cold front transits east of Austin on Wednesday, drier and cooler weather will settle in for the rest of the work week before 80-degree afternoon temperatures reemerge next weekend.



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