On January 5, 2018, SiEnergy, LP ( SiEnergy)filed a Statement of Intent seeking to increase gas utility rates within certain incorporated and unincorporated areas in Fort Bend, Harris, Waller and Travis Counties served by SiEnergy. The affected municipalities include the cities of Conroe, Fulshear, Missouri City, and Sugar Land.
SiEnergy is a gas utility operating within the Riverstone and Imperial Redevelopment District areas of the City. As of the filing, SiEnergy has 233 residential customers and one commercial customer in Sugar Land. In 2012, by Ordinance No. 1856, the City Council granted to SiEnergy a franchise to install and operate its natural gas facilities within the City’s rights-of-way.
In the filing, SiEnergy asserts it is entitled to a $400,000 revenue increase or a 35% increase over current adjusted revenues, excluding gas costs, or a 22% increase over current adjusted revenues, including gas costs. The average monthly bill including the cost of gas for:
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A residential customer would increase from $44.99 to $55.51 (a $10.53 increase per month); and
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A commercial customer would increase from $213.26 to $273.01 (a $59.75 increase).
The proposed increase is considered a major change in rates per state law.
A rate request made by a gas utility is not effective until at least 35 days following the filing of the application to change rates. SiEnergy has proposed an effective date of February 9, 2018. The City may suspend the rate change for 90 days after the date the rate change would otherwise be effective. If the City fails to take some action regarding the filing before February 9, 2018, SiEnergy’s rate request is deemed administratively approved.
The purpose of the Resolution is to extend the effective date of the Company’s proposed rate increase to give the City time to review the rate-filing package. The Resolution suspends the February 9, 2018 effective date of the Company’s rate request for 90 days from February 9, 2018, to May 10, 2018, to allow the City to evaluate the filing. By May 10, 2018, the City Council will be asked to take further action, whether it be approval of reasonable rates or denial of the proposed rate increase. This Resolution must be passed before February 9, 2018 to prevent the rate increase from going into effect.
The City is a member of the Gulf Coast Coalition of Cities. Thomas Brocato, an attorney with the Lloyd Gosselink law firm, has filed a motion to intervene in the on-going environs case that was filed at the Railroad Commission in order to protect the cities’ interests while the City’s rate review is in process. The Statement of Intent is being reviewed by a rate consultant. Reasonable rate case expenses are reimbursable by a gas utility.