Austin residents will not see immediate increases in their gas or electric bills following a City Council vote on July 24 to temporarily suspend proposed rate hikes from Texas Gas Service (TGS) and Oncor Electric Delivery. The 90-day suspension is the maximum allowed under state law and gives city staff time to review the filings alongside legal and industry experts.
What’s in the Proposals
TGS filed an application on June 30 to raise rates for its approximately 230,000 customers in Austin. If approved, the new rates would add:
$3.94 per month for small residential customers, with average bills rising to $48.82
$7.11 per month for small commercial customers, with average bills increasing to $114.67
At the same time, some customers would see decreases:
Large residential customers would pay $2.99 less per month, averaging $74.30
Large commercial users would pay $63.01 less, averaging $676.72
Oncor, which serves around 1,410 Austin customers in areas north of Howard Lane and south of Wells Branch Parkway, also filed a request on June 26 to raise electric rates. The proposal includes:
A 12.3% increase for residential electric rates
A 51% increase for street lighting rates
For a typical residential user consuming 1,000 kilowatt-hours monthly, the new rates would mean about $7 more per month, starting July 31.
Next Steps
The council’s vote gives the city time to collaborate with a coalition of municipalities served by TGS and Oncor. Legal counsel hired by the city will work with consultants to examine the filings, evaluate the rate changes, and consider possible settlement strategies.
No permanent decisions on the rate increases have been made. The pause allows for further review before any adjustments take effect.
