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City Council recently signed off on a franchise agreement that opens the door for a new gas provider to expand service into the city, bringing with it a potential boost in revenue.
Council members voted unanimously Sept. 16 to grant Sienergy Gas LLC the right to use public rights of way to transport, deliver and sell natural gas in Elgin. The company will pay the city up to 5% of its gross revenues from local sales under the agreement.
“This is just to use the right of ways, like any other franchise that operates within the city,” Public Works Director Michael Gonzalez said. “They’re going to have to get a permit, have those plans reviewed by city staff and make sure they follow all of our policies when operating in the right of way.”
Sienergy currently has no infrastructure inside city limits but has indicated plans to expand service west and potentially into Elgin in the future.
“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,” Sienergy representative David Oliva said during the first public hearing.
Gonzalez said engineering staff will oversee any boring or construction tied to the franchise, and operators will be held responsible for compliance with safety policies.
The company already operates in Austin and is pursuing a similar agreement in Pflugerville, according to officials.
The ordinance was approved on its third and final reading.
