Description
Title: Approve second reading of an ordinance granting a non-exclusive franchise and right to enter public rights-of way and public easements for a period of ten years to Texas Gas Service Company, a division of ONE Gas, Inc., to provide natural gas distribution services, and repealing Ordinance No. 20061005-023. Funding: Estimated annual franchise revenue in the amount of $10,832,000 is anticipated under this franchise agreement.
Summary
The City of Austin has proposed an ordinance to grant a ten-year non-exclusive franchise to Texas Gas Service Company, a division of ONE Gas, Inc., allowing them to utilize public rights-of-way and easements for natural gas distribution. This legislation, set for council review on May 28, 2026, is significant as it updates the existing franchise agreement, which has been in place for 20 years. Key provisions include a five percent franchise fee based on gross revenues, a commitment to a low-income assistance program by 2029, and requirements for public transparency regarding rate increases. The ordinance also mandates annual reporting on leak detection practices and outlines the City’s right to purchase the gas distribution system. This legislation impacts consumers and the City’s regulatory framework