Austin Energy Forms Franchise Agreements With Suburbs

By Austin Business Journal

The city of Austin will begin allocating about a $1 million annually to eight outlying communities served by Austin Energy, officials decided Thursday.

Austin City Council members approved signing franchise fee agreements with Bee Caves, Cedar Park, Pflugerville, Rollingwood, Sunset Valley, The Hills, Lakeway and West Lake Hills. The deal allocates about 3 percent of Austin Energy gross revenues from those areas for at least 10 years.

The money is provided in exchange for allowing the energy company right-of-way for power lines and other electrical equipment.

Austin Energy grossed about $34 million from electricity sales in the suburbs last year. It serves about 53,000 homes and 6,400 businesses in the eight communities and in unincorporated areas of Travis County.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/austin/news/2011/01/28/austin-energy-oks-franchise-agreements.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

Oil Prices Slide as Saudi Energy Minister Suggests OPEC Output Deal Imminent

Oil Prices Slide as Saudi Energy Minister Suggests OPEC Output Deal Imminent

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Market Bears Have Devoured Gold Prices

Market Bears Have Devoured Gold Prices

Chevron Falls With Crude After Mizuho Analyst Touts Its Mega-Assets

Chevron Falls With Crude After Mizuho Analyst Touts Its Mega-Assets