EL PASO, Texas (KFOX14/CBS4) — The City of El Paso said it is challenging the gas rate increase.
Karla Neiman said City Council voted this week to direct her office and the city manager to seek a rehearing following a decision by the Texas Railroad Commission that approved higher natural gas rates earlier this month.
The commission issued its decision on February 6, which city leaders say will increase costs for local ratepayers.
The city now has 25 days from that decision to formally request a rehearing. If granted, officials would have another opportunity to argue that parts of the agreement unfairly shift costs onto El Paso customers.
City officials argue the rate structure could force local customers to help cover gas service costs across other parts of Texas. Neiman said the city believes that would place an unfair financial burden on El Paso residents.
If the request for rehearing is denied, City Council could consider filing an appeal in district court in Travis County, where challenges to state regulatory decisions are typically handled.
That decision would be made at a later date.
According to the rate hike, average homes may see their bills rise by about 10%, increasing by about $3 to $4 per month, while larger homes could see their monthly bills rise by 19%, or about $11.
The Texas Gas Service said the increase is needed to cover service costs and maintain reliable service.
The El Paso City Council previously rejected the Texas Gas price hike proposal back in November of 2025.
“The City of El Paso has a responsibility to stand up for our residents and ensure utility rate decisions are equitable and justified,” said Mayor Renard Johnson. “We will continue to use every available avenue to protect our community from unnecessary financial impacts.”
Julia Spencer reports on City of El Paso challenges Texas Gas rate hike; proposes rehearing (Credit: KFOX14)
READ MORE: Texas Railroad Commission approves Texas Gas rate increase for service costs
While the city prepares to fight the gas rate increase, officials say they recently secured savings for customers in a separate electric rate case involving El Paso Electric.
The city successfully argued against a distribution cost recovery request that officials say would have allowed the utility to over-collect revenue.
According to the city, that decision is expected to save customers about $10.4 million between January and June of this year.
For the average customer, the savings amount to roughly $3 per month by preventing an additional rate increase from taking effect.
Officials said the electric utility may file another request to recover those costs after its broader rate case is completed, potentially later in 2026.
RELATED: El Paso City Council unanimously rejects Texas Gas price hike proposal
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