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HomeMy WebLinkAbout26-28723 - City Council - OrdinanceSiEnergy Denial Rate Ordinance 2026 1 ORDINANCE 26-28723 AN ORDINANCE OF THE CITY OF FORT WORTH, TEXAS FINDING THAT SIENERGY GAS, LLC’S STATEMENT OF INTENT TO INCREASE RATES FILING WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY’S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Fort Worth, Texas (“City”) is a gas utility customer of SiEnergy Gas, LLC (“SiEnergy” or “Company”) within the incorporated areas served by SiEnergy, and a regulatory authority with an interest in the rates and charges of SiEnergy; and WHEREAS, the City’s Charter grants the City Council the power by ordinance to fix and regulate the rates of all public utilities in the City; and WHEREAS, the City is a member of Cities Served by SiEnergy (such participating cities are referred to herein as “Cities”), a coalition of similarly situated cities served by SiEnergy that have joined together to efficiently and cost effectively review and respond to natural gas issues affecting rates charged by the Company; and WHEREAS, on or about May 4, 2026, SiEnergy filed with the City a Statement of Intent to increase gas rates, seeking to increase natural gas revenues by $4 million within the Company’s incorporated areas and consolidate its operations and assets with the other members of SiEnergy Holding, LLC; and WHEREAS, Cities has coordinated its review of SiEnergy’s Statement of Intent filing and designated attorneys and consultants to resolve issues in the Company’s filing; and WHEREAS, through review of the application, Cities’ consultants determined that SiEnergy’s proposed rates are excessive; and WHEREAS, Cities’ members and attorneys recommend that members deny the Statement of Intent; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1.That the findings and recitations set out in the preamble of this Ordinance are found to be true and correct and are hereby adopted by the City Council and made a part hereof for all purposes. SECTION 2.That the rates proposed by SiEnergy to be recovered through its gas rates charged to customers located within the City limits are hereby found to be unreasonable and shall be denied. SiEnergy Denial Rate Ordinance 2026 2 SECTION 3.That the Company shall continue to charge its existing rates to customers within the City. SECTION 4.That the City’s reasonable rate case expenses shall be reimbursed in full by SiEnergy. SECTION 5.That it is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and the public notice of the time, place, and purpose of said meeting was given as required. SECTION 6.That a copy of this Ordinance shall be sent to SiEnergy representatives June M. Dively and Daniel Cross, SiEnergy Gas, LLC, 13215 Bee Cave Pkwy, Suite B-250, Bee Cave, Texas 78738 (junedively@sienergy.com and dancroll@sienergy.com), and to Jamie L. Mauldin at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701 (jmauldin@lglawfirm.com). APPROVED AS TO FORM AND LEGALITY: ATTEST: By: _________________________________ Christopher Austria Jannette S. Goodall Sr. Assistant City Attorney City Secretary ADOPTED: August 25, 2026 EFFECTIVE: August 25, 2026 1 of 2 7.1.17 SIENERGY RATE DENIAL MAYOR AND COUNCIL COMMUNICATION 7.1.17 SIENERGY RATE DENIAL DATE:08/25/26 M&C FILE NUMBER:M&C 26-0892 DEPARTMENT:PROPERTY MANAGEMENT SUBJECT (CD 4, CD 6, CD 7, CD 10, and CD 11) Adopt an Ordinance Denying Rate Increase Proposed by SiEnergy Gas, LLC RECOMMENDATION It is recommended that the City Council adopt the attached ordinance denying the rate increase requested by SiEnergy Gas, LLC in its filing with the Railroad Commission of Texas on May 4, 2026. DISCUSSION The purpose of this Mayor and Council Communication (M&C) is to seek City Council approval of an ordinance that formally denies the rate increase proposed by SiEnergy Gas, LLC (SiEnergy). On May 4, 2026, SiEnergy filed a Statement of Intent under Subchapter C of Chapter 104 of the Gas Utility Regulatory Act seeking to increase gas rates within its incorporated service areas. SiEnergy’s filing asserts entitlement to a $4.0 million revenue increase within incorporated areas, representing a 31.4% increase over current adjusted revenues, excluding gas costs. On June 2, 2026, the City Council adopted Ordinance 28529-06-2026 suspending the proposed rate increase for the maximum period allowed by law. This action enabled the City to join with other municipalities served by SiEnergy to retain and direct legal counsel (Lloyd Gosselink Rochelle & Townsend, P.C.) and consultants to evaluate proposed rates. During the suspension period, consultants identified multiple unreasonable expenses and proposed significant reductions in SiEnergy’s request. Consequently, attorneys for Cities served by SiEnergy recommend that member cities adopt the ordinance denying the rate change. The attached ordinance implements this recommendation by denying SiEnergy’s requested rate increase. The City of Fort Worth maintains original jurisdiction over SiEnergy’s rates, operations, and services within city limits and must take final action to deny the proposed increases. Under state law, cities with original jurisdiction must take final action within 125 days of the Company’s initial filing. By agreement among SiEnergy, legal counsel, and consultants, this deadline was extended to September 4, 2026. Therefore, adoption of the ordinance is required no later than September 4, 2026. 2 of 2 Upon adoption, SiEnergy will have 30 days to appeal the decision to the Railroad Commission of Texas (RRC). Any appeal will be consolidated with the Company’s pending environs case and filings from cities that have ceded jurisdiction currently pending at the RRC under Case No. OS-26-00031317. SiEnergy currently serves customers in Council Districts 4, 6, 7, 10, and 11. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION The Director of Finance certifies that approval of this recommendation will have no material effect on City funds. SUBMITTED FOR CITY MANAGER'S OFFICE BY:Valerie R. Washington, #6192 ORIGINATING BUSINESS UNIT HEAD:Marilyn Marvin, # 7708 ADDITIONAL INFORMATION CONTACT:Juanita Rigsby, # 8518 ATTACHMENTS 1. 2026 Si Energy Denial Ordinance ( Legal Approval 8.6.2026) [7.1.17.1 - 2 pages]