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Council renews Atmos Energy franchise agreement with 5% fee
Summary
The Hillsborough City Council adopted Ordinance 14‑18 renewing the city's five‑year franchise agreement with Atmos Energy, maintaining a 5% franchise fee for gas use of city right‑of‑way; the ordinance passed on a unanimous roll call.
City Administrator Matt Stiles explained that franchise agreements with utilities allow use of city right‑of‑ways and reimburse the city for maintenance; the Atmos Energy franchise renewal before the council runs five years and includes a 5% franchise fee. "We are recommending moving forward with or adopting ordinance 14‑18," Stiles said, noting minor edits had been made to the draft and the city had not yet received formal confirmation from Atmos.
Council moved to adopt Ordinance 14‑18; the council polled and the vote recorded unanimous support from the members present. The ordinance renews Atmos Energy’s authority to distribute natural gas within the city and continues the quarterly franchise fee payments to the city to offset right‑of‑way maintenance costs.
