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Newnan updates franchise-fee agreement with Atlanta Gas Light; council approves revised calculation
Summary
The City of Newnan unanimously approved an updated franchise-fee agreement with Atlanta Gas Light Company that continues quarterly payments calculated by a set fee factor multiplied by decathrms and a public-service commission cost change factor.
The Newnan City Council unanimously approved an amended and restated franchise-fee agreement with Atlanta Gas Light Company on June 17, continuing a long-standing contractual arrangement under which the utility pays the city for nonexclusive rights to operate in public rights-of-way.
City staff said the city has held a franchise agreement with Atlanta Gas Light since May 20, 1968; the most recent amendment before this action was in October 1998. Under the updated agreement the franchise fee is paid quarterly and is calculated by multiplying a stated franchise-fee factor (noted in the meeting as $29.25) by the number of decathrms — a unit of energy described in the meeting — used by the city and by the percent change in the cost of service as determined by the Georgia Public Service Commission.
Why it matters: the franchise fee provides a recurring revenue stream to the city in exchange for utility access to public gas and light infrastructure. The council recorded unanimous approval of the updated agreement; specific roll-call tallies were not provided in the transcript.
