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Board approves first reading of Piedmont Natural Gas franchise ordinance; staff to follow up on consumer questions
Summary
The Hendersonville board approved on first reading an ordinance granting a franchise to Piedmont Natural Gas Co.; aldermen asked staff to obtain follow-up answers from Piedmont about residential billing and the collection mechanism before second reading.
The Board of Mayor and Aldermen held first reading May 27 of an ordinance (25-O-10) granting a non-exclusive franchise to Piedmont Natural Gas Company Inc. The ordinance establishes a franchise framework and allows the city to collect a franchise fee of up to 5% on natural-gas utility bills; the board approved the item on first reading and will consider second reading at a later meeting.
Key points from the discussion - City attorney described the ordinance as a standard franchise agreement intended to address liability and other contractual matters; the ordinance is non-exclusive and does not bar other gas providers. - Alderman Collins and other aldermen asked staff to request follow-up information from Piedmont about the typical residential bill amounts and the likely impact of a franchise fee on homeowners. Staff agreed to request written answers by email if Piedmont could not attend the next session.
Vote and next steps - The board took first reading of Ordinance 25-O-10; aldermanic sponsors moved and seconded the item and the board approved first reading unanimously. - Staff was asked to procure more detailed billing and impact data from Piedmont Natural Gas for second reading.
Why it matters: A franchise fee creates a mechanism by which the municipality may receive operational revenue tied to utility services; aldermen said they want clearer data on residential impacts before considering final approval.
