Who has jurisdiction over natural gas rates in most Texas municipalities?
The majority of Texas municipalities are served by investor owned utilities. In these municipalities, the municipality grants a franchise to a utility company, and the municipality has original jurisdiction (and the Railroad Commission has exclusive appellate authority) over the rates, operations, and services of the natural gas utility within the municipality. The Railroad Commission has no authority over the rates, operations, and services of a municipally-owned gas utility within the municipality s boundries.