Title
Consider and take action on a resolution suspending for 45 days the effective date proposed by Universal Natural Gas, LLC d/b/a Universal Natural Gas, Inc. (“UniGas”) in its application filed on or about March 1, 2024, pursuant to section 104.301 of the Gas Utility Regulatory Act (City Attorney)
Background:
On or about March 1, 2024, UniGas filed for an increase in gas utility rates under the Gas Reliability Infrastructure Program (“GRIP”) (Utilities Code § 104.301). UniGas’ application when approved by the Railroad Commission will result in an increase in the monthly customer charges as shown below:
Proposed
Rate Current 2024 Interim Adjusted Increase
Schedule Customer Rate Charge Per Bill
Charge Adjustment
Residential $21.95 $11.06 $33.01 $11.06
(RES) per customer per customer per customer
per month per month per month
Small $27.93 $55.20 $83.13 $55.20
Commercial per customer per customer per customer
(COMM) per month per month per month
Large $470.37 $832.10 $1,302.47 $832.10
Commercial per customer per customer per customer
(COMM) per month per month per month
Note that UniGas refers to its application as its “2023” interim adjustment because the increase in rates UniGas presents in its application is based on capital expenditures it made from January 1, 2023 through December 31, 2023.
“GRIP” RATE APPLICATIONS
Under section 104.301 of the Gas Utility Regulatory Act (GURA), a gas utility is allowed to request increases in its rates to recover a return on investments it makes between rate cases. This section of GURA is commonly referred to as the “GRIP” statute (the “Gas Reliability Infrastructure Program”). The statutory term for “GRIP” filings is an interim rate adjustment (“IRA”).
The Supreme Court of Texas concluded that a filing made under the GRIP statute permitted gas utilities the opportunity to recover a return on capital expenditures made during t...
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