EL PASO, Texas (KTSM) – The City of El Paso is contesting Texas Gas Service’s proposed rate increase and the consolidation of three service areas. This could result in an increase of more than $18 million for West Texas ratepayers that could heavily burden El Paso residents.

In June, TGS filed a rate increase application to consolidate the West Texas service area. This would, however, increase rates for small residential customers in El Paso up to $4.89. For larger residential customers, they could see a raise up to $7.01 a month. Commercial customers in El Paso could see an increase of $10.46 a month. The customer size is related to the amount of natural gas consumed per month. Both increases were deemed too much for El Pasoans.

“The community has already seen an increase in costs across the board due to largely because of the pandemic and so were working with our various partners including the utilities to determine what is the best approach.”- Laura Cruz-Acosta/ communications director, City of El Paso

KTSM did reach out to Texas Gas Service and they released a statement to us saying

“As a regulated company, we are required to gain approval for the rates we charge customers. Part of this process identifies the appropriate return our company receives for the capital we invest in our system and the operating costs we incur to maintain a safe and reliable system.”

Negotiations with Texas Gas Service and the City of El Paso are still in play and both parties hope to come to an agreement.

“On the 22nd the city council is going to have a public hearing and were asking the community to come out and share their concerns with the council members we’ve invited Texas gas to participate in that public hearing and so the expectation is that they’ll be able to hear directly from the residents.”- Laura Cruz-Acosta/ communications director, City of El Paso

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