Cities should have the choice of starting a natural gas utility. Although it is legal for a municipality to do this, the proposed legislation is an attempt to make it impossible for municipalities to start their own utility company. It also potentially opens the door to other utilities. Mr. Smith asked the committee to take a position against the proposed legislation. The committee discussed the issue.
Municipalities have the opportunity to grant franchises to anyone.
This bill would have a significant effect on this option. It would also affect power cities because a natural gas utility is a direct corollary to start-up power cities. If municipalities cannot franchise, there is a danger for them. Roger Tew added that cities and towns have spent three years fighting for the premise of municipal decision-making. This legislation represents a full, frontal attack on a clear municipal position.