Conroe City Council Suspends gas rate increase

In an effort to look out for the residents, the Conroe City Council approved an ordinance to suspend the implementation date of new gas rates proposed by CenterPoint Energy Corp. until after the winter months.



The company, doing business in the Houston region as CenterPoint Energy Entex and CenterPoint Energy Texas Gas, are raising rates about $6 per month. Currently, according to CenterPoint officials, the Conroe area has lower rates than Houston and the increase is to have the rates uniform for the Houston region.

CenterPoint filed its intent to raise rates with the Texas Railroad Commission in November.

The city, according to City Attorney Marc Winberry, has jurisdiction over the rates and charges of gas utility companies operating in the city. The city, he added, has the right to deny, approve or modify proposed rates. CenterPoint can appeal the action to the Railroad Commission.

"The reason the increase is larger in total for Conroe is because currently there are two different costs of gas that we charge customers in the existing Houston division," said Thomas Stevens, director of Regulatory Affairs for CenterPoint, noting the cost of gas in the Conroe area is lower than what other customers in the region pay. "So by consolidating rates, it does have a higher impact to a customer's bill (in Conroe)."

However, council members did not welcome the increase.

"Most of us up here on the dais (council seating area) are not concerned about your business model or getting your rate uniform; we are obviously concerned about the consumer," said Mayor Pro Tem Duke Coon, who added the council would do all it could to deny the increase. "This is substantial. I think if you had come to us with any other reason other than to uniform your rates, we might support it."

Councilman Duane Ham agrees.

"Even if our citizens have to suck this up, we can give them 90 days, which will get us through the winter months," Ham said. "We are different than Houston. … I think we are going to do everything we can to protect our citizens."

Winberry said the 90 days will give city staff time to consult with the council on any appeal CenterPoint makes to the RRC.

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