Committee advances Piedmont Natural Gas franchise ordinance allowing up to 5% fee

HENDERSONVILLE, Tenn. ' May 13, 2025 ' The City of Hendersonville's General Committee moved to advance Ordinance 2025-10, a franchise agreement granting Piedmont Natural Gas Co. Inc. rights to operate within the municipality and allowing a franchise fee generally capped at 5 percent of customers' total bills.

The ordinance matter drew questions about how the fee would affect residential customers. Alderman Rachel Collins asked, "I would just like to know how much it's gonna cost our citizens to have a 5%." Committee members and utility representatives said the effect on individual households depends on usage and commodities costs.

Piedmont and city staff described how the fee works: the franchise fee is calculated as a percentage of a customer's total bill. City-level revenue estimates in the committee packet showed a potential addition to the general fund of about $195,000 annually if the fee were applied as modeled; Piedmont stated that, based on 2023 figures, each 1 percent equated to roughly $39,000 in citywide revenue. Piedmont representatives and Administrative Services Director Jason Gallo also said an average bill figure can be skewed by commercial and industrial accounts; a rough calculation discussed at the meeting put a blended average at about $205 per account, but speakers cautioned that residential averages would be lower and vary by household.

Committee discussion emphasized local equity concerns. Alderman Mark Sidmore, who represents Ward 1, said many constituents are on fixed incomes and could be affected by higher winter bills. "Fixed rate income for us... it doesn't come on a bill that says Hendersonville on it," Sidmore said, urging care in setting any fee level.

City and utility speakers noted that the commodity portion of bills is a pass-through market cost and can fluctuate, while the franchise fee would be assessed as a percentage of total charges. The committee discussed customary practice in other municipalities and the customary resistance by consumer advocates and regulatory bodies to fees above 5 percent, though no statutory cap was cited.

By voice vote the committee advanced the ordinance (voice vote; tally not specified) for further consideration, with members signaling a neutral-to-support position while seeking more detailed residential-impact figures from the utility.

The ordinance will proceed to the Board of Aldermen for final consideration. City staff said they would supply commissioners additional data on likely residential impacts and average bills to inform the board's decision.