Item 5- Recommendation on Policy Regarding TGS Energy Efficiency Programs — original pdf

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BOARD/COMMISSION RECOMMENDATION Resource Management Commission Recommendation No. 20250819-005 Recommendation on Texas Gas Service Conservation Proposal Pending Before the Railroad Commission of Texas WHEREAS, Texas Gas Service (TGS) has submitted a three-year energy conservation program proposal to the Railroad Commission of Texas for its Central-Gulf region; and WHEREAS, TGS has proposed giving rebates paid by customers for standby generators that consume, not save energy; and WHEREAS, TGS has proposed giving rebates paid by customers for gas ranges, which harm indoor air quality, while providing no proof that this appliance program saves energy or money; and WHEREAS, TGS has proposed continuation of rebates for gas clothes dryers, tankless water heaters, and central furnaces, which do not pay back their investment in energy savings in Austin’s climate or in Residential settings; and WHEREAS, these proposed programs will cost ratepayers almost $5 million over the three-year proposal; and WHEREAS, TGS has not renewed its co-funding with Austin Energy for duct sealing and ceiling insulation, which have been shown to be some of the highest ROI energy savings programs; and WHEREAS, TGS has not, to date, fully complied with the legislative intent of the law granting the Railroad Commission of Texas the authority to regulate energy conservation programs run by gas utilities by: 1) failing to prove that all of its programs actually save energy; and 2) omitting program-specific energy and monetary savings in its filings; and WHEREAS, from about 1987 to about 1997 the City of Austin had an agreement with TGS to design and administer gas conservation programs, funded by TGS; and WHEREAS, TGS is continuing a long-standing pattern of funding energy conservation programs that are not cost effective; NOW THEREFORE BE IT RESOLVED that the Resource Management Commission advise the City Council to ask its appropriate City staff to go on record with the Railroad Commission of Texas to oppose the current program proposals; and BE IT FURTHER RESOLVED that the Commission is on record asking that any future franchise negotiations include a requirement that the company’s energy conservation program planning and administration be subcontracted to the City of Austin; and BE IT FURTHER RESOLVED that a copy of this recommendation be provided to the Market Oversight Section of the Railroad Commission of Texas in the most timely manner possible.