Item 2- Draft Recommendation Franchise High Fuel Costs 1.0 5 of 6

Resource Management Commission – Jan. 20, 2026

Item 2- Draft Recommendation Franchise High Fuel Costs 1.0 5 of 6 — original pdf

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RESOURCE MANAGEMENT COMMISSION RECOMMENDATION 20260120-XX Recommendation on High Fuel Costs in Texas Gas Service Franchise Agreement WHEREAS, fuel costs, which are added to rates as part of the total gas bill, have spiked in recent years due to increased storage and pipeline demand charges; adding to affordability problems; THEN BE IT THEREFORE RESOLVED that the City’s Resource Management Commission recommend that the Austin City Council implement the following policies related to the new Texas Gas Service franchise agreement: • TGS and the City should investigate ways to lower gas storage costs, demand fees, and reservation fees to historical levels.