On June 11, Midwest City residents will vote on a franchise agreement between our City and Oklahoma Natural Gas (ONG).
Franchise agreements are contracts with utilities that use our rights of way in order to provide services to our community.
The franchise agreement is the common way that the utilities and the City agree on the rules, rights and fees associated with using public property (our rights of way) for private purposes.Most franchise agreements cover an extended period of time, such as the 25 year agreement residents will vote on June 11. Our current 25 year franchise agreement with ONG expires on July 14, 2019. If the new agreement is approved by voters, it will take effect within a few days of voter approval.
In a franchise agreement, cities are paid a fee for use of their rights of way. Currently the City is paid a fee of 3%. If the new agreement is approved by voters, the rate will increase to 3.05% in July 2024, 3.10% in July 2029, 3.15% in July 2034, and 3.25% in 2039.
If the franchise agreement is not approved by voters, ONG would still provide services to the community but the new, updated agreement would not be in place. Having the long-term contract in place makes it easier for a utility to plan, and budget for, infrastructure improvements and other large investments.