Posting Language
Title
Approve first 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.
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Lead Department
Austin Financial Services
Fiscal Note
Estimated annual franchise revenue in the amount of $10,832,000 is anticipated under this franchise agreement.
For More Information:
Marija Norton, Controller, 512-974-2951; Kim Euresti, Deputy Controller, 512-974-2232.
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 streamline meanings and make the term consistent with gas franchise conventions across Texas.
* Term of the agreement - The proposed agreement provides for a 10-year term with no automatic renewal. The existing agreement has been in effect for a total of 20 years, consisting of a 10-year base term and an automatic second 10-year term.
* Low-Income Assistance Program - TGS will work with the City to implement a monthly assistance program for income-qualified customers in the City by January 1, 2029. This will be pursuant to a tariff approved by the City and the assistance will be funded thro...
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