Item 4- Gas Utility Presentation — original pdf

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Gas Utility Briefing Resource Management Commission Paul Robbins March 25, 2025 On February 13, 2025, the Resource Management Commission’s purview was expanded to advise City Council: Regarding recommendations for the natural gas utility ratemaking, franchise agreement priorities, and operational policies for which the City has regulatory authority. Total Residential Gas Customers in Austin 2023: 230,870 Total Residential Austin Energy Customers in Austin 2023: 487,096 47% / Does Not Include Master-Metered Multifamily Units Census: Majority of Homeowners in Austin and Travis County Served by Gas Heat Majority of Renters in Austin and Travis County Served with Electric Heat Total Austin Gas Utility Revenue 2023: $204 million Total Residential Gas Utility Revenue 2023: $135 million 20% of Austin Energy’s 2023 Residential Revenue Carbon Footprint: 45% of Austin Energy Carbon Emissions TGS Service Territory Austin Atmos Service Territory Austin Reasons for High Cost of Texas Gas Service Texas Gas Service: $342 Million, 63% Plant Cost Increase in Only 4 Years But 5% Increase in Customers in Only 4 Years Unlike Austin Energy and Austin Water, City Council Was Not Allowed in Decisions on Whether to Allocate This Money $185 Million in New Infrastructure in 4 Years $4 Million in Developer Construction Fees Only 2% Collected From Capital Recovery Fees ( aka Contribution to Aid in Construction) Texas Gas Service Company, a Division of ONE Gas, Inc. (cid:18)(cid:39)(cid:94)(cid:4) ISOS RTCS TYE December 31, 202(cid:1007) Exhibit AL-1 Page 1 of 1 Central Texas Region Galveston Region Central Texas Region and Galveston Region Combined for Rates Over Austin’s Objections Central-Gulf Service Area Central-Gulf Service Area Rio Grande Valley Service Area Rio Grande Valley Service Area West-North Service Area West-North Service Area Gas Utility Regressive Rates in Texas The More You Use, the Less You Pay Per Unit of Energy • Discourages Energy Conservation • Punished Low-Income Ratepayers The More You Earn, the More You Burn From: Residential Energy Consumption Survey 2020 for Southern U.S. U.S. Energy Information Administration A Main Reason for Regressive Rates is High Monthly Customer Charge But it is Common to Have Lower Monthly Charges at Other Utilities Examples of Gas Utilities With Low Customer Charges 2025 Cascade Natural Gas Oregon Cascade Natural Gas Washington Citizens Energy Group Indiana Colorado Springs Utilities Colorado CPS Energy Texas DTE Energy Michigan Eversource Eastern Massachusetts Gainesville Regional Utilities Florida Memphis Light, Gas & Water Tennessee Pacific Gas and Electric California Piedmont Natural Gas North Carolina Piedmont Natural Gas South Carolina Public Service Electric and Gas Company New Jersey SoCalGas California Southeast Alabama Gas District Alabama Southwest Gas Arizona Southwest Gas California Southwest Gas Nevada Spire Energy Central/Northern Alabama Spire Energy Mississippi Spire Energy Mobile Alabama $6.00 $6.00 $8.87 $11.95 $10.36 $14.50 $9.75 $9.75 $10.42 $4.00 $10.00 $10.00 $9.38 $5.00 $10.00 $8.00 $10.80 $5.75 $7.98 $8.00 $11.60 Austin Utilities Assist Low-Income Ratepayers with $24 Million/Year Texas Gas Service Assists Low-Income Ratepayers with $120,000/Year Examples of Rate Discounts for Low-Income Assistance 2025 CPS Energy Texas Southwest Gas Arizona Southwest Gas California $4.88/Month Low-income winter heating rate 1/3 discount for low-income Cascade Natural Gas Oregon 15-95% discount based for low-income Cascade Natural Gas Washington 15-95% discount based for low-income SoCalGas California 20% discount for low-income Pacific Gas and Electric California 20% discount for low-income Eversource Eastern Massachusetts 25% discount for low income Public Service Electric and Gas Company New Jersey $225/year credit to low-income seniors/disabled Nicor Gas Company Illinois 5 - 75% for low-income Northern Indiana Public Service Company Indiana 11 - 26% discount for low-income Examples of Energy Conservation-Based Rates 2025 Pacific Gas and Electric California Southwest Gas California Spire Energy Western Missouri SoCalGas California Two Progressive Tiers Two Progressive Tiers Two Progressive Tiers in Summer months Two Progressive Tiers Other Issues for Further Discussion 1. High Fuel Costs 2. Poorly-Performing Conservation Programs 3. Pollution 4. Progress on Leak Mitigation AND 5. 2026 Texas Gas Service Franchise Negotiations THEY REALLY START NOW