Gas company seeks market foothold

Elgin leaders are considering whether to welcome a new utility provider that could eventually expand service into the city and surrounding area. 

City Council began reviewing a proposed franchise agreement last month that would allow Sienergy Gas LLC to deliver and sell natural gas in Elgin — using public rights of way in exchange for franchise fees. The company would pay the city a maximum 5% of gross revenues from local sales under the agreement, according to officials.

“From what I understand there is a very big need for gas on the west side of the city, so we intend to bring it through here,” said David Oliva, a representative for Sienergy.

“This is just another utility. With natural gas, there is no [Certificate of Convenience and Necessity] protection as there is with electricity, so it is an open market for competition.”

Oliva said the company, which already operates in Austin and is pursuing a similar agreement in Pflugerville, currently has no infrastructure inside city limits. He added that Sienergy plans to expand service west of the city and potentially into Elgin in the future.

The city charter requires three separate readings and publication notices before such a franchise ordinance can be approved, according to officials. A session Aug. 19 marked the first reading, and representatives from Sienergy will remain present to answer any questions at future meetings.

Council members are expected to consider the last reading in the coming weeks before taking final action.