The Austin City Council meeting on July 15, 2025, spotlighted the 2025 Texas Gas Service (TGS) Rate Case, which could significantly impact local residents and businesses. City Controller Maria Norton and outside counsel Thomas Bercato presented an overview of the case, which was filed on June 30, 2025, and is set to take effect on August 19 unless action is taken.

TGS is seeking a substantial revenue increase of $41.1 million, translating to a 7.07% hike in rates, with a more significant 9.83% increase when excluding gas costs. This marks the third rate increase TGS has pursued in just over a year, following a comprehensive rate case last November and an annual GRIP filing in April.

A key aspect of the proposal is TGS's plan to consolidate its three service areas into one, which could lead to varied impacts on customers depending on their current service area. For instance, small residential customers in the Central Gulf Service Area could see their monthly charges rise from $21.36 to $29.50, while large residential customers would face an increase from $33.36 to $39.50.

In addition to the rate increases, TGS is proposing to expand its "Share the Warmth" program, aimed at assisting low-income customers. The company plans to allocate $2 million to this initiative, funded by ratepayers, which includes costs for a donation management platform and outreach efforts. However, it remains unclear if TGS will continue to contribute shareholder funds to this program.

The council has until mid-November to make a decision on the rate case, with the potential for TGS to appeal any decision to the Railroad Commission. A decision from the commission is expected by mid-January 2026, following a thorough review process.

As the city prepares to respond to this significant filing, the implications for residents and businesses alike could be profound, making it a critical issue for the Austin community.