SiENERGY, L.P. (Company), a gas utility company, has made application for a franchise Agreement with the City in order to provide gas service to customers within the City of Fort Worth. The Company has franchise Agreements with several Texas cities and currently serves over 15,000 customers throughout the state and now seeks to expand its service to Fort Worth. Most recently the Fort Worth Transportation Authority selected SiENERGY as its natural gas provider.
Under the terms of the proposed ten year franchise ordinance, the Company will pay the City a fee of five percent of the following:
(a) gross revenue received by the Company from the sale of gas to all classes of customers within the City;
(b) all revenues received by the Company from the transportation of gas through the Company's facilities within the City to Customers located within the City.
Other major provisions in the franchise agreement include:
(a) a provision that the Franchise is non-exclusive and the City reserves the right to grant other and future gas franchises to other entities;
(b) the Company will be responsible for the cost to disconnect, remove and relocate its facilities from the public rights-of-way due to street construction, or reconstruction, or relocation of City-owned utilities; and
(c) a provision that should the Company renew or execute a new municipal franchise ordinance with another municipality that results in a franchise fee greater than the fee to be paid to the City, the franchise fee under this ordinance shall be increased to match.
The term of the ordinance is for ten years from its effective date.