BRENHAM, Texas — On April 4, 2022, the City of Brenham issued a formal complaint against Oasis Pipeline. The complaint was issued after Oasis raised its rates for the transportation of gas to the City of Brenham by hundreds of thousands of dollars on November 1, 2021.
The complaint detailed how the City of Brenham asked the Railroad Commission to set a reasonable rate for the transportation of natural gas to the Brenham municipally-owned gas distribution system.
Under the Texas Utilities Code, the Railroad Commission is in charge of making sure gas utility rates stay at a reasonable price. Oasis is a subsidiary of Energy Transfer LP, one of the largest pipelines in Texas. It is a natural gas utility regulated by the Commission.
Brenham Mayor Milton Tate said the drastic rate increase is unreasonable and that they were basically given no choice but to accept this change in order to avoid a disruption in gas deliveries as winter arrived.
In the complaint, the City of Brenham notes that Oasis may not have filed the proper paperwork in order to make such a change, noting that if Oasis had filed the paperwork, it did not send a copy to the city. Oasis also hasn't responded to the city's request to forward the paperwork, which was requested on February 3, 2022.
“While we had no choice but to seek the assistance of the Railroad Commission, we are hopeful that in light of the complaint Oasis will sit down with us and agree to a reasonable rate.” Mayor Tate said.
Attorney John Hays is representing the City of Brenham. He said the previous annual rate was just over $158,000 but now is estimated to be over $607,000. Hays said the city wants the Railroad Commission to step in, but ultimately, it would appreciate better cooperation from Oasis going forward.
"One of the things we've asked for in the complaint is under the statute is that if a complaint's filed and the Commission determines a rate lower than what's being charged is the correct rate."
Hays said a hearing hasn't been set yet and the case is currently being reviewed.
You can find the official complaint here.
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