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
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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.
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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]