Northwest Natural Holding Company (NWN) announced on September 23, 2026, that its Texas-based subsidiary, SiEnergy Gas, LLC, has reached a settlement with the Railroad Commission of Texas (RRC) and the cities served by the utility. The settlement resolves a general rate case filed on May 4, 2026, by SiEnergy Gas, Pines Gas, Inc., and Pines Gas Development, Inc.
The agreement, filed with the RRC on September 22, 2026, provides for an annual revenue requirement increase of approximately $8.6 million. This figure is lower than the original request of $12.0 million filed by the companies. The settlement stipulates a capital structure consisting of 59.75% equity and 40.25% long-term debt, a return on equity of 9.8%, and an overall cost of capital of 8.0%.
The rate base for the combined entities is approximately $343 million, representing an increase of $177 million since the last rate case was filed in 2023. The settlement also calls for the consolidation of SiEnergy Gas, LLC and its affiliated gas distribution entities. If approved by the RRC, new rates are expected to take effect in November 2026.
The agreement establishes the baseline factors necessary for SiEnergy’s future participation in the Grid Reliability Infrastructure Program (GRIP). This program allows for interim rate adjustments based on changes in net plant investments between rate cases, subject to a prudence review in the next filing. To participate, SiEnergy must make an initial GRIP filing within two years of the rate case filing.
SiEnergy Operating, LLC, which was acquired by NWN on January 8, 2025, completed the acquisition of Pines Gas, LLC and Pines Development, LLC on June 3, 2025. The settlement is subject to final review and approval by the RRC.
