By the OGJ Online Staff
HOUSTON, Mar. 1�Severance tax incentives are among the short-term recommendations aimed at stabilizing natural gas prices that the Texas Railroad Commission approved unanimously Thursday and forwarded to the Texas legislature.
Stemming from a Monday hearing in Austin, the recommendations were outlined in a letter delivered to the heads of the House Committee on Energy Resources and the Senate Natural Resources Committee.
Commissioners proposed statutory changes in two areas. The first change would be to allow cities to choose to cede their jurisdiction over gas utilities to the commission, just as currently allowed in electric regulation.
The second change would be to grant the commission authority to determine statewide customer service standards applicable to investor-owned gas utilities.
In addition, commissioners urged lawmakers to consider severance tax incentives to help promote development of additional gas supply, noting that suppliers and consumers testified additional gas supply is the answer to stabilizing market prices at lower levels.
The letter said, �These changes will help to send market signals to consumers faster and more efficiently, will help to dampen extreme month-to-month price fluctuations, and will help to standardize billing information and service rules throughout the state.�
Commissioner Charles Matthews called the recommendations, �the first step in addressing the problem of high natural gas prices.� Later this year, the commission plans to hold a broader hearing examining all aspects of the Texas gas industry.
Commissioner Tony Garza said, �We stressed the importance of creating an atmosphere that encourages development and expanded production of our natural gas resources.�
Garza is a vice-chairman of the Interstate Oil and Gas Compact Commission, which is having its spring quarterly meeting in Washington next week. Gas issues are a topic on the IOGCC�s agenda.