The Texas State Energy Plan was drafted in 2008 under the direction of Governor Rick Perry and the Governor’s Competitive Council, 29 private and public sector appointees tasked with identifying issues affecting the state’s competitiveness in the global market and making recommendations for how the state can continue to sustain long term economic success. The plan contains 37 recommendations. Among those that are relevant: The Legislature should repeal the presumption in PURA in favor of gas-fired plants in order to ensure that a diverse mix of resources is developed in Texas; State policymakers should bring a Texas perspective to federal carbon policy debates in order to educate federal decision makers on the economic value of Texas’ energy production to the nation; Texas should identify and resolve barriers to accelerating the development of in-state natural gas assets, including Barnett and other shale assets. As part of this exploration, Texas should address the federal ban on accessing all onshore and offshore resources; The Governor should direct the PUC to study whether alternate forms of rate regulation for transmission and distribution utilities would be appropriate to meet these goals and identify whether any statutory impediments exist to implementing such regulation; The state should partner with higher education institutions and corporations to develop and promote advanced transmission and distribution technologies and incent investment in the R&D of such technologies.

While Texas’ gas utilities are not required to implement energy efficiency plans, Atmos Energy and Texas Gas Service offer energy efficiency programs.

In 2003, the Texas Legislature passed SB 1271 which established the Texas Gas Reliability Infrastructure Program (GRIP). GRIP allows a gas utility that has filed a rate case within the previous two years to file a tariff or rate schedule that provides for an interim adjustment in its monthly customer charge or initial block rate in order to recover the cost of investment changes, which could include the replacement of aging infrastructure or expansion of infrastructure. On February 4, 2015, Rep. Mary Gonzalez introduced H.B. 1125. This bill would direct the Texas Railroad Commission (RRC) to initiate a study on the availability of natural gas utility service in Texas. The study would aim to identify areas of the state that lack such service; identify reasons for any lack of availability; estimate the cost of expanding availability of natural gas service; and, investigate methods to expand the availability of natural gas service. The RRC would be required to issue a report to the legislature, the lieutenant governor, the speaker of the house, and others by November 30, 2016. In March of 2015, the Texas house took up H 1125. This bill would direct the Railroad Commission of Texas to conduct a study on the availability of natural gas in the state. In conducting the study, the commission shall: (1) identify each area of this state that lacks natural gas utility service; (2) consider the reasons for the lack of availability of natural gas utility service in each area identified in Subdivision (1) of this section; (3) estimate the cost of expanding availability of natural gas utility service in each area identified in Subdivision (1) of this section; and (4) study methods for making natural gas utility service available throughout this state. Once the study is concluded, The commission shall issue a written report to the legislature, the lieutenant governor, the speaker of the house, and the presiding officers of the standing committees of the senate and house of representatives with jurisdiction over the commission that includes the commission's findings and recommendations relating to changes in policies, rules, and statutes necessary to provide for or expedite the extension of natural gas utility service to areas of this state that lack that service. This bill died at the end of the legislative session. On September 27, 2016, the Texas Railroad Commission (RRC) issued an in Texas Gas Service’s (TGS) base rate case. The RRC’s order permits TGS to, at its option, extend lines to serve a group of new customers outside or inside the incorporated areas or the West Texas Service Area by use of Contribution in Aid of Construction (CIAC). Unless not economical or reasonable, the company can allow payment of the CIAC in the payment of the CIAC amount in the form of a monthly Tapping Fee to be charged to the all customers connecting to the extension of facilities each month until the company recovers the amount of CIAC required to serve the area. At least 50% of the existing homes in the area must be under contract for service for this time of extension of facilities to be available to the area.

In 2003, the Texas Legislature passed SB 1271 which established the Texas Gas Reliability Infrastructure Program (GRIP). GRIP allows a gas utility that has filed a rate case within the previous two years to file a tariff or rate schedule that provides for an interim adjustment in its monthly customer charge or initial block rate in order to recover the cost of investment changes, which could include the replacement of aging infrastructure or expansion of infrastructure. In 2011, the Texas Railroad Commission adopted a comprehensive pipeline safety rule that requires all state natural gas distribution companies to survey their pipeline distribution systems for the greatest potential threats for failure and make replacements. The rule allows for the recovery of costs of such programs via a deferral mechanism. Atmos Energy, CenterPoint Energy and Texas Gas Service utilize portions of these mechanisms. On August 25, 2015 the Texas Railroad Commission (RRC) adopted a settlement in CenterPoint Energy’s base rate case. The agreement provides that a 10% ROE with a 54.5% equity capital structure is to be used for prospective adjustments under any interim rate adjustment mechanisms that recognize new capital investment, including the company’s Gas Reliability Infrastructure Program.

Through its subsidiary, Questar Fueling Co, Questar Corp. gas built CNG Stations in Dallas, Houston, San Antonio and DeSoto. WEC Energy Corp. subsidiaryTrillium CNG owns and operates stations in Rosenburg, Waco, Amarillo, Sweetwater, Wichita Falls, Weatherford, Fort Stockton, Dallas, El Paso, two stations in San Antonio and three in Ft. Worth.

Atmos Energy operates under a rate stabilization tariff. Texas Gas Service operates under a straight-fixed-variable rate design which consists of a flat fee up to 200 ccf/month. Weather normalization adjustment mechanisms are in place for Atmos Energy and Texas Gas Service.