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Council hears first reading of 20‑year Oncor electric franchise; no action taken
Summary
On first reading, the council reviewed a negotiated 20‑year franchise agreement with Oncor Electric Delivery Company LLC covering use of city rights‑of‑way, construction approval requirements and an unchanged franchise fee formula; publication and 20‑day waiting period were noted.
Brownwood City Council reviewed, on first reading, a proposed 20‑year franchise ordinance granting Oncor Electric Delivery Company LLC permission to use city streets, alleys and public rights‑of‑way to deliver electricity to the city and its customers.
Why it matters: A franchise agreement governs use of municipal rights‑of‑way and can affect permitting, street work and utility relocation costs. This agreement establishes operational and restoration obligations and preserves the city's authority to adopt ordinances affecting rights‑of‑way.
City Attorney Pat Chesser said the negotiated franchise grants Oncor the right to use current and future rights‑of‑way within Brownwood for electric utility operations and includes a maximum 20‑year term, the longest permitted by Section 118 of the City Charter. Under the agreement, Oncor must obtain approval from the city's Public Works Director before constructing facilities within rights‑of‑way and must restore affected areas to their original condition after construction. Oncor would be required to relocate facilities at its own expense when necessary for city street or utility projects; exceptions apply when relocation is requested solely for aesthetic or beautification purposes or when the city requests relocation in its capacity as an electricity customer, in which case the city would reimburse relocation costs.
Chesser also explained the franchise fee structure would remain unchanged from the previous agreement: an annual fee based on a factor of 0.003222 per kilowatt‑hour delivered to customers within the city plus 4% on all other customer charges. He noted the ordinance must be published in full once in the newspaper at Oncor's expense and cannot take effect until 20 days after publication pursuant to the City Charter.
Council discussed the publication timeline and whether a 20‑year term is standard; Chesser told the council that 20 years is the maximum duration allowed by the charter. No vote or final action was taken at this meeting; the ordinance remains at first reading.
