· Peak
Council approves the Fermi water supply agreement 4-1 on second reading
The council voted 4-1 to authorize the agreement, with Councilmember Les Simpson voting no. Simpson said he supported the project but that the City should have negotiated a higher rate. The agreement text was not in the posted agenda packet; Mayor Stanley said it was still a draft under negotiation when the agenda was posted.[1][2][3][4]
Cole StanleyLes SimpsonDavid PrescottTim ReidDon TippsFermi America (Fermi, Inc.)
What the sources say
- ✓ Verified
On October 28, 2025 the council voted 4-1 on second and final reading to authorize the water supply agreement; Councilmember Les Simpson voted no.[1][2][3]
- Votes for
- 4
- Votes against
- 1
- ⚠ Sources differ
Sources describe the base against which Fermi's doubled rate is measured differently.
Reported value 1[5]
- Rate multiple
- 2
- Base
- a connection of like size within city limits
Contract text (Section 6.01).
Reported value 2[1]
- Rate multiple
- 2
- Base
- a commercial water user inside city limits
Agenda memo as reported by the Amarillo Tribune.
Reported value 4[3]
- Rate per 1000 gallons
- $9
Globe-News: $8.72 per 1,000 gallons, which it described as the highest industrial rate in city history.
- ✓ Verified
Les Simpson, City Councilmember (Place 4): Simpson said, "I support Fermi and hope they're successful," and "We should've negotiated a better rate." He said Fermi did not push back on the two-times rate; ABC 7 reported he suggested proposing a rate five times higher. He cited a reported $100 million a year to Texas Tech for use of its land and asked "what are Amarillo citizens receiving for their water?"[3][2][1]
- ✓ Verified
David Prescott and Tim Reid, City Councilmembers: Councilmember David Prescott said that if the council felt it was short in value, "we do that at the 5.5"; Councilmember Tim Reid called this the first phase and said negotiation would begin as Fermi's water needs grow. The Tribune reported the City and Fermi anticipated Fermi returning in about six months to request 5.5 MGD.[1]
- ✓ Verified
Toby Neugebauer and Trent Sisemore, Fermi America: Asked by Simpson why Fermi came to the City, Fermi CEO Toby Neugebauer said: "we can pay more for water than the consumer can, which allows you all capital to be able to reinvest into other water projects." Fermi community lead Trent Sisemore said the company was paying the highest rate anyone had paid the City for water.[1][3][2]
- ✓ Verified
Trent Sisemore (Fermi America); Cole Stanley, Mayor: Sisemore said Fermi will follow Panhandle Groundwater Conservation District limits of one acre-foot per acre per year. Stanley said statewide conservation policy falls to the Texas Water Development Board, not the City.[3]
- ✓ Verified
Fermi America: Fermi has projected that hybrid air-and-water cooling for four AP1000 reactors would consume an estimated 13.2 million gallons a day in total, and has said it does not anticipate needing more than 27.5 MGD (company projections).[1][6]
- Projected cooling mgd
- 13.2
- Projected max mgd
- 27.5
- ✓ Verified
Fermi America: Fermi's October 29, 2025 press release described a 20-year agreement for up to 2.5 MGD and said a non-binding MOU allows scaling up to 10 MGD in later phases.[4]
- ✓ Verified
The coverage of the October 14 and October 28, 2025 votes reviewed for this record reports discussion of Ogallala Aquifer pumping, Panhandle Groundwater Conservation District limits and the City's existing sales to Xcel Energy and Producer Owned Beef, but does not report discussion of the Canadian River Municipal Water Authority (CRMWA) supply.[1][3][7][8]