EL PASO -- The City Council should not approve the entire rate increase sought by Texas Gas Service, but it should try to reach a compromise, the Public Utility Regulation Board recommended late Wednesday. After spending more than 12 hours listening to presentations and deliberating the gas companys case for an 8. 84 percent increase, the board decided to approve a return rate on investment for Texas Gas of 8. 16 percent.

The rate was slightly lower than the gas companys request and higher than the 7. 46 percent recommendation made by a consultant hired by the city. It was not clear Wednesday how the recommendation from the board would affect gas bills, but it would most likely constitute an increase. "We need to give the gas company a fair shake," said Brian Burds, a member of the city-appointed board, formed to help the council study the rate increase issue.

"They are the provider and they need a fair rate of return on their investment," Burds said. The vote Wednesday was split, and three of the nine members had left the meeting by the time the decision was made. Board members