Posting Language
Title
Approve third 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: $10,832,000 in estimated revenue is anticipated under this franchise agreement.
Body
Lead Department
Austin Financial Services
Fiscal Note
An increase of $10,832,000 in estimated revenue is anticipated under this franchise agreement.
Prior Council Action:
May 7, 2026 - City Council approved first reading of the ordinance.
May 28, 2026 - City Council approved second reading of the ordinance.
For More Information:
Marija Norton, Controller, 512-974-2951; Kim Euresti, Deputy Controller, 512-974-2232.
Council Committee, Boards and Commission Action:
January 20, 2026 - The Resource Management Commission discussed, voted on, and approved policy recommendations for City Council consideration regarding the new Texas Gas Service franchise agreement.
April 29, 2026 - The Resource Management Commission discussed, voted on, and approved recommendations for City Council consideration regarding the first draft ordinance of the Texas Gas Service franchise agreement.
Additional Backup Information:
Texas Gas Service Company, a division of One Gas, Inc., (TGS), is the primary provider of natural gas service in the City of Austin. The current franchise agreement will expire on October 16, 2026. Pursuant to City Charter, adoption of this franchise agreement requires three separate readings of the ordinance at Council, with the first and the third reading at least 30 days apart. In addition, the effective date of the final agreement is sixty days from approval of the ordinance of third reading.
A summary of key terms in this non-exclusive franchise agreement are as follows:
* Definition of "Gross Revenues" is updated to streamlin...
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