The city of Austin’s Resource Management Commission proposed bylaw amendments on July 23 asking for permission to advise the City Council on issues regarding natural gas.
Currently, there is no oversight body on issues involving gas utilities in Austin. Council Member Ryan Alter said recent increases in natural gas rates have become concerning.
“There is legitimate concern from the public of why their rates have gone up so much more than the electric rates and the water rates, so it’s appropriate to have some public input and oversight,” Alter said. “Council Member Allison Alter (and I) told staff, ‘You need to come back to us with some method of the public being involved and having their input on this process.’ Whether that is the (Resource Management Commission) having formal oversight or something where they form a working group that is able to provide direct input and receive information and ask questions.”
Resource Management Commission vice chair and environmental activist Paul Robbins said he hopes the commission can advise the council on how to lower rates and adjust rate structures moving forward to benefit the Austin community.
“We are not a sovereign body,” Robbins said. “The council is the primary regulator. We would advise the Council on ways to lower rates … and even if you have lower rates, it can be structured to help or hurt certain income brackets.”
Alter said the process to begin giving the commission authority to advise the council will take 90 days. After the City Council makes its decision, it will appeal to the Texas Railroad Commission, which regulates oil and gas statewide. The three-person state commission will then make a final decision.
“Gas is different because they are regulated not only by the Texas Railroad Commission, but state law sets out a very narrow band in which the city can regulate them,” Alter said. “Even if (the Resource Management Commission) did have that authority, Texas Gas Service is subject to state law no matter what.”
Texas Gas Services, one of Austin’s largest providers of natural gas, said in a statement that it would continue to abide by whatever regulations the city imposes.
“While the Resource Management Commission (RMC) seeks to expand regulations, we remain committed to adhering to all established guidelines, even if we do not believe extensions are necessary,” the statement said.