Testimony on Texas Gas Service rate hike proposal

Here’s what I told the Austin City Council today at a public hearing on Texas Gas Service’s rate hike proposal.

Good morning, my name is Luke Metzger, Executive Director of Environment Texas, a nonprofit advocate for clean air and water, parks and wildlife, and a livable climate.

I have two comments to share with you today.

First, thank you for advocating for a lower fixed charge for Texas Gas Service customers. High fixed charges benefit households that consume high amounts of methane gas, and punish those that consume low amounts of gas. They also discourage energy efficiency and conservation. This gets it exactly wrong. 

When a customer uses less energy, whether through energy efficiency or conservation, not only does that customer benefit, so does the public. About 10% of Austin’s carbon footprint comes from burning gas. When we burn less gas that means less planet warming and health-harming pollution. It also means a less expensive utility overall, as utilities are built and maintained to meet the demand of their customers. If we all used less energy, the gas utility is less costly to build and maintain.

If a customer is already paying $30 to $50 before using a therm of gas, the economics of investing in whole home energy efficiency, or a more efficient furnace get worse. With less of your bill determined by your usage, you have less opportunity to save. The payback period for those investments can be pushed back by years. For example, I got a heat pump water heater two years ago. My gas usage dropped 70% as a result, but because of the fixed charge, my actual bill barely changed.

Texas Gas Service has proposed a $25.50 fixed charge for some customers, and $39.00 for others. Both are too high. While I would like to see an even lower fixed charge, the $16 fixed charge supported by Austin and other Cities Served by Texas Gas Service is much more reasonable, and better aligns with our city’s climate goals.

Second, Austin and the Cities Served by Texas Gas Service should oppose rather than conditionally support the Texas Gas Service proposal to peddle false solutions to its customers by selling so-called “Renewable Natural Gas” credits. 

Let’s be clear, there is nothing renewable about biomethane. Biomethane is methane gas, just like the geologic methane we drill for. When burned, it harms our health and warms our planet. When allowed to escape unburned – as it certainly will if put in gas distribution systems riddled with gas leaks – it has an even greater negative impact on our climate. It cannot and should not be confused with truly renewable energy sources like wind and solar. 

Gas utilities claim environmental benefits from biomethane by comparing the impact of allowing it to escape into our atmosphere to burning it. That benefit is real, and we should capture and use this gas rather than simply release it. But there simply is not enough biomethane to replace the amount of geologic methane we use in our buildings, and it would be incredibly expensive to do so. And again, putting biomethane into gas distribution systems is one of the worst if not the worst uses of it, as it is bound to leak, eliminating some of the claimed environmental benefits. Instead, onsite generation, and eventually “hard to decarbonize” applications are the appropriate use of biomethane. 

It’s important to understand the actual proposal. Texas Gas Service is not proposing to purchase or use any biomethane. Instead, its parent company has already purchased $2.4 million worth of “Renewable Thermal Credits.” And they are proposing to have Texas Gas Service customers now pay the bill. If, under this program, a Texas Gas Service customer opts to pay more on their bill for this “RNG” credit, they are not purchasing or helping to purchase any new environmental attributes. This is greenwashing and selling false solutions to customers who want to do their part to fight climate change.

Long term we need to end our reliance on methane to power our homes, replacing it with clean renewable energy. While I appreciate that the Cities Served by Texas Gas Service are opposing the particularly objectionable proposal by Texas Gas Service to potentially force even customers who do not opt in to pay for this greenwashing scheme, Austin should not support any part of Texas Gas Services “renewable natural gas” credit proposal.

Thank you.