NW Natural Holding Company (NYSE: NWN) announced that its subsidiary SiEnergy Gas, LLC and its gas distribution affiliates reached a settlement with key parties in a Texas general rate case, according to a company press release.

The settlement was filed with the Railroad Commission of Texas (RRC) on Sept. 22 and includes the RRC staff and cities served by SiEnergy as parties. It remains subject to RRC approval.

If approved, the settlement would provide for an $8.6 million increase in the annual revenue requirement, compared with SiEnergy's original request of $12.0 million. The agreement sets a capital structure 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 settlement reflects a rate base of $343 million, an increase of $177 million since the last rate case in 2023. New rates, if approved, are expected to take effect in November 2026.

The settlement also establishes conditions for SiEnergy's participation in the Grid Reliability Infrastructure Program (GRIP), which allows interim rate adjustments based on changes in net plant investments during the prior year. To participate, SiEnergy would need to make its initial GRIP filing within two years of its rate case filing.

"I'm proud of the collaborative process with parties and believe the settlement represents a balanced outcome for our customers and other stakeholders," said June Dively, President of SiEnergy.

NW Natural Holding Company acquired SiEnergy Operating, LLC on Jan. 8, 2025. SiEnergy Operating completed its acquisition of Pines Gas, LLC and Pines Development, LLC on June 3, 2025.