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City staff outline scope and timeline for Texas Gas Service franchise negotiations ahead of 2026 expiration
Summary
City controller and outside counsel told the committee the TGS franchise expires Oct. 15, 2026; staff must present a negotiated agreement for council consideration by May 7, and while cities can ask for items like low-income assistance or fee adjustments, some matters (rate-making and conservation programs) fall under the Railroad Commission.
City staff briefed the Climate, Water, Environment and Parks Committee on Dec. 2 about the scope and constraints of negotiating city gas franchise agreements, including the upcoming renewal for Texas Gas Service (TGS), whose current contract expires Oct. 15, 2026.
"Franchise agreements essentially allow utilities to use a city's right of way," Maria Norton (city controller) told the committee, and she noted that franchise ordinances must follow charter procedures including readings and effective-date rules. Norton said city staff expects a negotiated agreement to be ready for council by May 7 to meet timelines for adoption before the current agreement lapses.
Outside counsel (Thomas…
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