![]() ![]() 2: Under the settlement between Texas Gas Service and the City of El Paso approved by an administrative law judge Tuesday, El Paso residents will pay a monthly fee of $5.22 for the next three years to recover costs from Winter Storm Uri. NovemCity of El Paso, Texas Gas Service reach settlement to reduce freeze feeīy Danielle Prokop, El Paso Matters November 2, 2021 (Corrie Boudreaux/El Paso Matters)Ĭity of El Paso, Texas Gas Service reach settlement to reduce freeze fee Ciudad Juárez, on the other hand, went dark as natural gas deliveries from Texas dropped.Ĭover photo: Snow covered the border region on Feb. The city is also tied into the Western Interconnection, not ERCOT. While power companies lost money, gas sellers reported record-breaking profits of more than $11 billion during the blackouts.Įl Paso was mainly spared from power outages because the electrical grid was weatherized after a historic storm in 2011. The prices skyrocketed - up to 400 times the usual amount - with increased demand as people tried to heat their homes. Gas processing facilities shut themselves down. Just before the storm, gas production dwindled as companies were concerned fracking, which uses water to operate, would freeze. Amid the dangerous conditions, millions of people lost power, Texas’ largest power grid Electric Reliability Council of Texas was minutes from a complete grid failure, and more than 200 people died. Over five days, Texas saw extreme temperature lows, strong winds and snow. News site Utility Dive found more utility companies are seeking securitization to ask customers to pay for costs from climate events, such as wildfires and hurricanes, as well as unpaid bills accrued during the coronavirus pandemic.ĭuring Winter Storm Uri, a system of failures compounded one another. Texas Gas Service, part of Oklahoma-based ONE Gas, asked the commission’s permission to recover more than $257 million in costs from the winter storm through the bonds - in this case backed by the state’s money - to pay off short term debts, which is called securitization. The City of El Paso filed as an intervenor, opposing the fee, saying the city would be subsidizing the company’s costs in areas outside of El Paso, which were hit harder by the storm.Ĭity spokesperson Laura Cruz Acosta said the settlement with Texas Gas Service reached Monday will reduce the $4.33 per month proposed fee and shorten the time West Texas customers have to pay. The request was the same as other gas utilities, which all required approval from the commission. The settlement agreement will be proposed at Tuesday’s hearing for approval from the three-person board.Įarlier this year, Texas Gas Service, which supplies natural gas to El Paso, applied for a $4.33 monthly rate increase for El Pasoans to pay over a decade - an additional $52 a year. At least seven cities, regional coalitions and 12 gas companies reached a settlement over fees related to Winter Storm Uri ahead of the scheduled hearing Tuesday before the Texas Railroad Commission, which regulates the oil and gas industry, according to filings with the commission.
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