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Council approves 20‑year Atmos Energy franchise; 5% franchise fee continues
Summary
Council approved a 20‑year franchise agreement with Atmos Energy for use of public rights‑of‑way; agreement preserves a 5% franchise fee, requires plan submittal for work in right‑of‑way and includes relocation and reimbursement provisions for state/federally funded projects.
The City of Copperas Cove on July 15 approved a 20‑year franchise agreement granting Atmos Energy the right to construct, maintain and operate gas pipelines and related equipment in city rights‑of‑way.
City manager Ryan Haverlau summarized the agreement and said it reflects statutory and charter requirements governing franchises. The ordinance keeps the franchise fee at 5% (consistent with common practice statewide) and requires Atmos to coordinate with the city on construction and restoration when work affects city rights‑of‑way. Atmos is required to submit plans to the city’s development review committee for review; the agreement does not require Atmos to obtain a separate street‑cut permit but does require minimization of traffic disruption and restoration of disturbed areas.
Relocation and reimbursements: The franchise says Atmos must relocate facilities at its cost unless relocations result from a state or federally funded project; in those instances Atmos may be eligible for reimbursement and must complete relocation within a reasonable period after notice (staff said a minimum 30‑day notice will begin coordination). The agreement is nonexclusive (the city may grant other franchises in the future) and retains city rights to monitor rates and service; Atmos must provide quarterly revenue and fee reports.
Why it matters: Franchise agreements govern private utilities’ use of public rights‑of‑way and set terms for restoration, relocation and fee payments that affect city finances and operations. Staff said the city attorney reviewed and approved the agreement and recommended adoption.
Council action: Council voted to approve the ordinance granting the franchise (ordinance number 2025‑20). Staff recommended approval and no roll‑call opposition was recorded during the meeting discussion.
Ending: Staff said the franchise will allow continued gas service in and through Copperas Cove under the agreed terms and that coordination on relocations and development review will continue.
