City Files Lawsuit Over Contract Dispute with WTG Gas Marketing, Inc
City of Brenham Files Lawsuit Over Contract Dispute with WTG Gas Marketing, Inc.
Winter Storm Rates Lead to $8 Million Claim
Today, May 4, 2021, the City of Brenham filed a lawsuit against WTG Gas Marketing (WTG) to make sure that WTG honors its Gas Sales Contract with the City. The City of Brenham was notified by WTG that WTG intends to charge the City approximately $8 million, for natural gas delivered during February 2021 in connection with Winter Storm Uri. The Gas Sales Contract between the City and WTG has been in place since 2016 and establishes a price at the first of each month. WTG is attempting to charge the City more than 29 times the amount permitted under the Gas Sales Contract for natural gas delivered during Winter Storm Uri. The pricing provisions in the Gas Sales Contract negotiated by Brenham are clear. WTG’s attempt to charge exorbitant rates is contrary to these provisions and the contract. “The City of Brenham has a solid gas supply contract that protects us from situations like this”, said City Manager, James Fisher. He continued, “Our goal is to protect our customers and the city’s financial integrity.”
Brenham City Council first met on March 18, 2021, to discuss the estimated charges from its gas provider for the days during Texas’ Arctic Blast in February.