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Posted on: February 26, 2020

City Signs New Franchise Agreement with Pedernales Electric Cooperative

In Kendall County and a portion of Comal County, the exclusive purveyor for electric transmission and distribution is Pedernales Electric Cooperative (PEC). On February 20, 2020, the City Council approved a new ten-year franchise agreement with PEC.

Enhancements to the new agreement include:

  1. Written consent, excluding emergency responses, by the City Manager prior to PEC performing work in the City is required.
  2. The Agreement may not be assigned without the City’s prior consent.
  3. Notices to parties now include the City Attorney’s office.
  4. Authorization of a 4% franchise fee of gross revenues*.

*For the use of city rights-of way, easements, and street to transmit and distribute utility services, right-of-way rental fees, also called "franchise fees", are the rental costs paid by utilities and allowed as a pass-through fee to the utilities’ customers.  The assessed franchise fee is established in a franchise agreement between the City and the utility provider. 

The new 4% of gross revenues franchise rate is the first-ever increase since the inception of the original franchise agreement in 1989.  This percentage rate places PEC in line with the City’s other utility franchisee’s such as City Public Service and Grey Forest Utilities.  The revenue received from these fees supplement property taxes.  

Pedernales Electric Cooperative will be notifying its’ Fair Oaks Ranch customers, via U.S. Mail, a notice of fee amendment.  Beginning May 1, 2020, the new percentage rate will be reflected in the Franchise Fee line item of customer’s monthly PEC bill for April usage. For questions regarding how the city determined the new franchise fee, please contact Assistant City Manager, Carole Vanzant, at 210-698-0900, Ext. 204.

PEC Website...
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