The Texas Railroad Commission approves a financing order that will prevent huge spikes in natural gas bills caused by last year’s Winter Storm Uri.
This impacts more than four million residential and 260,000 commercial customers of Atmos Energy, CenterPoint, Texas Gas Service and five smaller Texas gas utilities.
The financing order allows natural gas utilities to spread the high cost of gas incurred during last year’s winter storm across multiple monthly bills rather than having customers face a large spike in one bill.
A news release from the railroad commission does not state how many months the additional cost will be spread out.
The financing order, authorized during last year’s legislative session, involves issuing bonds totaling approximately $3.4 billion dollars to cover what is described as “extraordinary gas costs”.
The Texas Public Finance Authority will issue the customer rate-relief bonds within six months. Bond proceeds will be used to reimburse participating gas utilities for their gas costs.