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Council approves 10‑year franchise renewal with C Energy LP for gas service
Summary
Rosenberg approved a 10‑year franchise renewal with C Energy LP, maintaining a 4% franchise fee on gross natural‑gas revenues; staff said the company supplies a small share of gas accounts in the city.
Rosenberg, Texas — The Rosenberg City Council on June 17 approved an ordinance renewing a franchise with C Energy LP to construct, maintain and operate gas distribution facilities in the city for a 10‑year term, with automatic successive renewals permitted under the agreement.
City staff said the renewal maintains a 4% franchise fee on gross natural gas revenues payable to the city. The franchise term begins on the ordinance’s effective date and the franchise may automatically renew in two successive five‑year periods but may not exceed 20 years in total. Staff said C Energy currently supplies a small portion of the city’s gas accounts and the franchise has historically produced modest revenue—approximately a few thousand dollars per year in recent years.
Council members asked whether 4% was standard; staff replied that 4% is common for modern franchise agreements and that higher percentages were more common in prior decades. Council voted to approve the ordinance and directed the company to file written acceptance of the ordinance within 45 days as required by the document’s terms.
The ordinance renews the city’s regulatory consent for gas lines and facilities within public right‑of‑way and continues the city’s ability to collect a franchise fee on gross revenues under the agreed percentage.
