Cuero, Texas — June 10, 2024
In a decisive move, the City Council of Cuero, Texas, passed a resolution suspending the scheduled rate increase proposed by Texas Gas Service Company (TGS). The resolution aims to allow the city adequate time to thoroughly evaluate the requested changes and establish reasonable rates for gas services.
Background
- On June 3, 2024, TGS, a division of ONE Gas, Inc., filed a Statement of Intent with the City of Cuero. The intent was to modify gas rates across all municipalities within the Central-Gulf Service Area, with an effective date of July 8, 2024.
- As a gas customer of TGS, the City of Cuero holds exclusive regulatory jurisdiction over TGS rates and charges within its boundaries.
- Recognizing the significance of this decision, the City Council resolved to collaborate with other cities facing similar circumstances. Their collective goal: to conduct a comprehensive review of TGS’s application, engage legal counsel and consultants, and negotiate with the company.
Key Provisions of the Resolution
- Suspension of Rate Increase:
- The resolution suspends the July 8, 2024, effective date of TGS’s rate request. This suspension allows ample time for a thorough examination of the proposed changes.
- The City Council aims to ensure that any adjustments to gas rates are fair, transparent, and in the best interest of Cuero residents.
- Cooperation with Other Cities:
- Cuero joins forces with similarly situated cities to collectively assess TGS’s application. By pooling resources and expertise, they seek to present a unified response.
- Legal counsel and consultants will play a pivotal role in analyzing the proposal and advocating for the community’s interests.
- Railroad Commission Intervention:
- TGS’s application is also under scrutiny at the Railroad Commission, specifically in Gas Utilities Docket (GUD) No. 17471.
- The City Council authorizes intervention in this docket, ensuring that Cuero’s concerns are heard and considered.
- Reimbursement of Rate Case Expenses:
- The resolution emphasizes that costs incurred by the city during the rate-setting process should be reimbursed by the regulated utility (TGS).
- This provision underscores the need for transparency and accountability in rate negotiations.
Public Transparency and Notice
- The City Council affirms that the meeting at which this resolution was passed adhered to legal requirements for public openness.
- Formal notice of this resolution will be promptly communicated to TGS and legal counsel.
As Cuero navigates this critical juncture, residents can rest assured that their voices matter. The City Council remains committed to safeguarding the community’s interests and ensuring fair and reasonable gas rates for all.
For inquiries or further information, please contact the City of Cuero.