El Paso City Council Rejects Proposed 27% Natural Gas Rate Hike
The El Paso City Council voted Tuesday to oppose a 27 percent natural gas rate increase requested by Texas Gas Service (TGS). The move comes after a public hearing where residents heard directly from the company and city advisors, culminating in a resolution that followed months of technical review, legal analysis, and community meetings across the city’s districts.
The rejected proposal was part of a broader TGS initiative to consolidate its service areas across West Texas, the Central Gulf region, and the Rio Grande Valley into a single, unified rate structure. The company had argued that it faces a statewide revenue shortfall of $41.1 million, with $28.3 million of that attributed to the West North area, which includes El Paso.
However, a financial analysis commissioned by the city concluded that the consolidation would disproportionately burden El Paso residents. While customers in the city would face an average 27 percent increase, those in other regions—particularly the Rio Grande Valley—would actually see their bills decrease. Experts hired by the city contended that TGS’s proposal does not accurately reflect the actual infrastructure costs or the specific service conditions in El Paso.
With the City Council’s formal rejection, the case will now be escalated to the Texas Railroad Commission, the state’s regulatory body, which is expected to issue a final ruling in early 2026. In the interim, the city administration has stated it will remain in negotiations with TGS and other involved parties to explore alternative solutions that avoid a disproportionate financial impact on local users.
City officials affirmed their commitment to presenting a robust case before the state commission to ensure any future rate adjustment is both balanced and appropriate for the El Paso community.
