Kyle approves franchise deal with new energy company

With unanimous approval July 17, Kyle city leaders gave the green light for a second natural gas supplier to set up shop in town.

The Kyle City Council approved a deal to grant Lakeway-based SiEnergy, LP, to supply gas to Kyle residents.

According to chief of staff Jerry Hendrix, SiEnergy has no agreements to supply gas within the city limits, but requested to have a franchise agreement in place in case the opportunity were to arise in the future. There is a small area on the east side of the city that SiEnergy could possibly service one day, Hendrix said at the July 3 city council meeting.

The council approved a 10-year term, five percent franchise fee and requires that SiEnergy notify the city manager if the company enters negotiations to supply gas to a Kyle development. The agreement also provides for a franchise fee paid to the city that covers costs for public rights of way and streets for its maintenance equipment, as well as grants the city oversight on where the company puts its lines, he said.

The franchise agreement will have no impact on the city budget until the company initiates service within Kyle’s city limits, city officials said.

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