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Regulation proposed for tighter control of natural gas prices in Austin – The Daily Texan


Regulation proposed for tighter control of natural gas prices in Austin – The Daily Texan

The City of Austin’s Resource Management Commission proposed Amendments to the statutes on July 23, requesting permission to advise the city council on natural gas issues.

Currently, Austin does not have an oversight board for gas issues. Council member Ryan Alter recently said Increase in natural gas prices have become worrying.

“The public is legitimately concerned about why their rates have gone up so much more than the electric and water rates, so it’s appropriate for the public to have some say and some control,” Alter said. “Council member Allison Alter (and I) said to staff, ‘You need to come to us with a method that will involve the public and give their input in this process.’ Whether that’s formal oversight from the (Resource Management Commission) or something where they form a working group that can give direct input, receive information and ask questions.”

Resource Management Commission Vice Chairman and environmental activist Paul Robbins expressed hope that the commission could provide advice to the council on how to reduce fees and adjust fee structures in the future for the benefit of the people of Austin.

“We are not a sovereign body,” Robbins said. “The council is the primary regulator. We would advise the council on how to lower tax rates … and even if there are lower tax rates, you can design them to help or hurt certain income brackets.”

Alter said the process that gives the commission the authority to advise the council will take 90 days. After the council makes its decision, it will appeal to the Texas Railroad Commission, which regulates oil and gas services across the state. The three-member state commission will then make a final decision.

“Gas is different because not only is it regulated by the Texas Railroad Commission, but state law sets a very narrow framework within which the city can regulate it,” Alter said. “Even if (the Resource Management Commission) had that authority, Texas Gas Service is still subject to state law in any case.”

Texas Gas Services, one of Austin’s largest natural gas providers, said in a statement that it will continue to comply with all regulations imposed by the city.

“Although the Resource Management Commission (RMC) is seeking to expand regulations, we remain committed to complying with all established guidelines, even if we do not believe expansions are necessary,” the statement said.

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