At their meeting on March 23, 2021, the Buda City Council adopted a resolution suspending the effective date of a natural gas rate adjustment filed by CenterPoint Energy Resources Corp. South Texas Division, to increase rates under the Gas Reliability Infrastructure Program (GRIP) for a period of 45-days. The 45-day delay allows for the rate request to be analyzed and postpones the rate increase implementation on customers.
CenterPoint proposed an effective date of May 3, 2021 for the increase in rates. Because of the actions of the Buda City Council, the effective date is suspended until June 17, 2021. CenterPoint’s application, if approved by the Texas Railroad Commission, will result in an increase in the monthly customer charges as shown below:
Current Customer Charge
Proposed 2021 "GRIP" Adjustment
Increase Per Bill
R-2097-I-GRIP 2021; R-2097-U-GRIP 2021 - Residential
|$22.59 per customer per month||$2.33 per customer per month||$24.92 per customer per month||$2.33 per customer per month|
GSS-2097-I-GRIP 2021; GSS-2097-U-GRIP 2021 - General Service Small
|$32.27 per customer per month||$4.78 per customer per month||$37.05 per customer per month||$4.78 per customer per month|
GSLV-628-I-GRIP 2021; GSLV-628-U-GRIP 2021 - General Service Large Volume
|$145.43 per customer per month|
$28.61 per customer per month
$174.04 per customer per month
|$28.61 per customer per month|
Under the Gas Utility Regulatory Act of Texas state law, a gas utility may request rate increases under the Gas Reliability Infrastructure Program (GRIP). Under the GRIP program, gas utilities may adjust their rates based on their capital expenditure costs. A 2014 Texas Supreme Court ruling found that the Railroad Commission has authority to approve adjustments to gas rates based on the utility provider’s costs of service. This ruling precludes a city from intervening in the rate process. However, a city may invoke the 45-day rate adjustment delay.