The disparity between regular ONG customers and the large companies that get natural gas on their own and have it delivered via ONG’s pipelines came about when the Corporation Commission ruled companies could buy gas from one company and delivery from another.
The question on the ballot will assess the franchise fee equally, not just from ONG gas customers.
Franchise fees are charged to companies that use City rights-of-way and easements for private profit. The revenue from these fees goes to the City’s operating budget and pays for City services used by all citizens, not just customers of the companies that use the public’s property in their business. Fees also cover the expenses of maintaining and administering easements and rights-of-way for the public good.
The City Council sets permit fees and requirements by City ordinance. Citizens must vote on franchises.
“The language on the ballot is so long and technical, we want to be sure the voters know this election has no effect on customers who buy their natural gas from ONG. The election is not to change the franchise fee, it essentially closes a loophole so everyone shares the franchise fee cost equally,” City Manager Jim Couch said.
Almost all natural gas customers in Oklahoma City purchase gas from ONG. “It figures out that 99.8% of Oklahoma City residents who use natural gas already pay the franchise fee in their bill. This measure would allow collection of the franchise fee from the few remaining natural gas users that haven’t been covered since ‘unbundling’ in the eighties,” Couch said.
