EL PASO, Texas – (KFOX14/CBS4) — The El Paso City Council has rejected a settlement proposal that would have capped a Texas Gas rate increase at 10%, leaving the final decision to the Texas Railroad Commission.
The council’s decision follows Texas Gas’ initial proposal for a 27% rate hike, which the council unanimously rejected at their last meeting.
The settlement offer, which would have limited the increase to roughly $3 more per month, was turned down in a narrow 5-4 vote, with Mayor Renard Johnson casting the tie-breaking vote.
Mark Baugh reports on El Paso City Council rejects gas rate settlement, decision moves to state commission (Credit: KFOX14)
RELATED: El Paso City Council unanimously rejects Texas Gas price hike proposal
“It was a very close decision, and I think a lot of the council seemed to be very torn on how to vote here, because again the Railroad Commission of Texas is historically very favorable to the utility companies,” said City Rep. Chris Canales.
Mayor Johnson expressed his concerns, stating, “This is a very hard vote for me to take today. Any increase to any of the taxpayers and residents of El Paso is something we don’t need, but to have a 27 percent increase is something that is out of the question.”
The original 27% proposal would have meant an additional $10 to $14 each month for customers.
With the rejection of the 10% settlement, the Texas Railroad Commission will now decide whether to approve the original request or adjust it.
Residents have expressed their worries about the uncertainty, with one stating, “I believe the city will work on it, and I hope they do fix the problem.”
“Of course, since the moment they rejected it, they’re supporting the city, because 27% is too much,” added another.
A final ruling from the Texas Railroad Commission is expected in January.
RELATED: El Paso residents react as utility rate hikes add up
Sign up to receive the top interesting stories from in and around our community once daily in your inbox.