Description
Title: Approve third reading of an ordinance granting to Bluebonnet Electric Cooperative, Inc., a non-exclusive franchise for constructing, maintaining, operating and using a transmission and distribution system in the City to provide electric utility services within its certificated area. Funding: $196,400 estimated increase in revenue is anticipated under this franchise agreement.
Summary
The City of Austin is considering an ordinance granting Bluebonnet Electric Cooperative, Inc. a non-exclusive franchise to construct, maintain, and operate a transmission and distribution system for electric utility services. This franchise agreement, which replaces the existing one expiring on August 30, 2026, provides a ten-year term with an option for a five-year extension. Bluebonnet will pay a franchise fee of 3% of its gross revenue on a quarterly basis, contributing an estimated $196,400 in revenue to the city. The agreement includes provisions for compliance with city regulations, rights to audit, and a purchase option for the city to acquire Bluebonnet's facilities under specific conditions. This legislation is significant as it ensures continued electric service provision while