Gas Franchise with Centerpoint

This is the third and final reading of the Franchise Agreement with Centerpoint Gas.  As stated before, the City of Texas City Staff has been working with its attorney group, Lloyd Gosselink, et al, and Centerpoint Energy to renew our Franchise agreement.  Highlights:  increase from 3% to 4.25%; term is 5 years with 1 year automatic renewals; notice of 3 months for termination after 5 year initial term; clarification on permits required, repair of ROW's, notice of work, emergency work, etc.  The net difference in our income from the changes and clarifications would roughly $110,000.  Currently we are paid about $124,000/year and with the new franchise it would be roughly $231,000/yr.
We have to publish the entire agreement in the newspaper 4 times and wait sixty days after the adoption before the agreement will go into effect, so the impact will not be felt to much in this fiscal year.