Local Natural Gas Customers to See Monthly Rate Increase

Area residents with natural gas service from Center-Point Energy will see a $3.72 increase to their monthly base rate. Commercial customers will see an even greater increase.

The increases, which the company calls an “interim rate adjustment,” come as part of CenterPoint’s Gas Reliability Infrastructure Program (GRIP). The rate hikes affect customers across Center-Point’s South Texas Division. Area communities served by CenterPoint include La Grange, Schulenburg, Weimar, Smithville and Hallettsville.

Monthly base rates for residential customers will increase from $27.03 to $30.75. Commercial customers who use 150,000 cubic feet or less in a year will see a monthly increase of $7.51, from $41.42 to $48.93. Commercial customers who use more than 150,000 cubic feet in a year will see a monthly increase of $59.85, from $210.33 to $270.18.

These are the biggest rate hikes in more than a decade. In 2012, residential customers paid a base rate of $15.28 a month. That amounts to a 101 percent increase over the past 11 years.

In documents filed with the cities that CenterPoint serves, the company said this year’s GRIP adjustment is needed to pay for several infrastructure investments it made in the past year. Those include the following:

• Investment to replace approximately 300 miles of natural gas pipe across the Company’s Texas divisions, as part of its system modernization program.

• Capacity and reliability improvements across the Company’s natural gas footprint in Texas as a result of customer growth. CenterPoint Energy added approximately 38,000 new customers across the state.

• Continued installation of the new Intelis meters in all of the Company’s divisions, with approximately 140,000 of these meters placed into service in Texas last year. These innovative meters have integrated safety features, e.g., an internal shutoff valve that automatically activates if excessive natural gas flow or high temperatures are detected. The meter’s state-of-the-art ultrasonic metrology also allows for unparalleled natural gas usage measurement accuracy for natural gas customers.

Cities have no authority to reject the rate increases, but they can vote to suspend them for 45 days. The La Grange City Council voted to suspend the increase at their meeting on Monday night, March 13. The new rates will go into effect for La Grange customers in June. The Schulenburg City Council will consider the rate increases at an upcoming meeting; and they have historically voted to suspend the increases in past years. Otherwise, the new rates go into effect on May 1.