Franchise Agreement with Pedernales Electric Cooperative, Inc.

City of Kyle, Texas

Brief Overview of Franchise Agreement with Pedernales Electric Cooperative, Inc.

On August 22, 2017, the Kyle City Council approved an Ordinance on second reading that renewed the rights and privilege granted under a franchise agreement for transmission and distribution of electric and energy service within the city limits of Kyle to Pedernales Electric Cooperative, Inc.

After publishing a public notice, Kyle City Council held a public hearing to receive comments from residents, ratepayers, other interested persons and businesses on the renewal of rights and privilege under consideration by City Council for approval under a franchise agreement for transmission and distribution of electric and energy service within the city limits of Kyle to Pedernales Electric Cooperative, Inc.

Here are some of the key highlights of this franchise agreement with Pedernales Electric Cooperative:

• The franchise is for the purpose of transmitting, distributing, carrying, conducting, conveying, supplying, furnishing and selling to the City and the inhabitants of the City or other person or persons, firms corporations, whether within or without the City, electricity, energy, power, light, heat, energy services, and for any other purpose for which electricity or energy services may be now or hereafter used.
• The funds from the franchise fee help pay for maintenance and repair of roads.
• The term of this franchise agreement is for a period of five (5) years from the effective date of the Ordinance.
• The effective date of the franchise agreement is immediately from and after the passage of the Ordinance, which is August 22, 2017.
• The franchise fee to be paid by Pedernales Electric Cooperative, Inc., to the City of Kyle is four and one-half percent (4.50%) of the gross revenues received by Pedernales Electric Cooperative, Inc., from its sale of energy and power to customers within the city limits of Kyle.
• The franchise fee is to be remitted by Pedernales Electric Cooperative, Inc., to the City of Kyle on a quarterly basis.

PEC customers will receive letters from PEC regarding the franchise fee. See a sample letter below.