Sugar Land City Council approved a settlement agreement with SiEnergy LP on Sept. 12. The agreement will set rates and establish tariffs for the provision of natural gas service by SiEnergy, a large provider, within the city.

The details

SiEnergy filed a statement of intent in May seeking to increase gas utility rates within the incorporated areas served by SiEnergy in North, Central and South Texas. The affected municipalities include the cities of:
  • Austin
  • Celina
  • Conroe
  • Fate
  • Forney
  • Fort Worth
  • Fulshear
  • Grand Prairie
  • Houston
  • Manor
  • Mansfield
  • Missouri City
  • Princeton
  • Sugar Land
  • Waxahachie
The cities of Fate, Forney, Fort Worth, Fulshear, Grand Prairie, Houston, Mansfield, Missouri City, Sugar Land and Waxahachie took action to suspend the June 9 proposed settlement date and participate in the proceeding as a coalition.

Additional unnamed cities have hired attorneys and natural gas rate experts to investigate the company’s request. Based upon their analysis, they were able to negotiate a reasonable final resolution of the rate request, according to the City Council presentation.

By the numbers

Under the terms of the settlement agreement, SiEnergy would receive a revenue requirement of $27.95 million. This is a $4.19 million reduction to the $32.14 million revenue requirement requested by SiEnergy and an increase of approximately $5.5 million in annual revenues systemwide.

The settlement agreement also reflects an agreement that the company will not make interim rate adjustments before its next comprehensive rate case.

The settlement agreement also increases the residential monthly customer charge to $19.25. Through settlement, SiEnergy agreed to provide a one-time aggregate credit totaling $101,084. The settlement and its associated terms of agreement will take effect Nov. 6, according to the City Council presentation.