Southwest Gas Franchise Agreement Chandler Az
Southwest Gas Franchise Agreement Chandler AZ: Everything You Need to Know
Southwest Gas is a leading natural gas company providing energy solutions to millions of customers across Arizona, Nevada, and California. The company has been serving the region for over 80 years and is committed to providing reliable, affordable, and safe natural gas to its customers.
One of the key factors that have contributed to Southwest Gas` success is its franchise agreements with cities and towns across its service area. Franchise agreements allow the company to install and maintain natural gas pipelines and equipment within the public rights-of-way.
One such franchise agreement is the Southwest Gas Franchise Agreement Chandler AZ. This agreement entered into force on July 1, 2018, and is valid for 25 years. In this article, we will provide an overview of the franchise agreement and its key provisions.
What is a Franchise Agreement?
A franchise agreement is a contract between a utility company and a city or town that allows the company to provide services within the city`s public rights-of-way. The agreement outlines the terms and conditions for the company to use the city`s streets, sidewalks, and other public areas to install and maintain its facilities.
In exchange for the right to use the public rights-of-way, the utility company pays the city a franchise fee. The fee may be a percentage of the company`s gross revenues or a fixed amount per customer served.
Overview of the Southwest Gas Franchise Agreement Chandler AZ
The Southwest Gas Franchise Agreement Chandler AZ is a contract between the City of Chandler and Southwest Gas Corporation. The agreement allows the company to install, operate, and maintain natural gas pipelines and equipment within the city`s public rights-of-way.
Under the agreement, Southwest Gas is required to comply with all applicable laws, rules, and regulations governing the installation and maintenance of its facilities. The company must also provide 24-hour emergency service to its customers and the city.
In exchange for the right to use the public rights-of-way, Southwest Gas pays the City of Chandler a franchise fee equal to 3% of its gross revenues from the sale of natural gas within the city. The fee is paid quarterly, and any delinquent payments are subject to interest and penalties.
The agreement also contains provisions for the removal, relocation, or abandonment of Southwest Gas` facilities. The company is required to obtain the city`s approval before making any changes to its facilities, and it must restore any public areas disturbed during the installation or maintenance of its facilities.
Conclusion
The Southwest Gas Franchise Agreement Chandler AZ is an essential contract between Southwest Gas and the City of Chandler. The agreement allows the company to provide natural gas service to its customers within the city`s public rights-of-way while ensuring compliance with all applicable laws and regulations.
The franchise agreement also provides the City of Chandler with a source of revenue in the form of franchise fees, which can be used to fund public services and infrastructure. Overall, the Southwest Gas Franchise Agreement Chandler AZ is a win-win for both the company and the city it serves.