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Saturday, May 9, 2026 at 5:17 AM

Council extends franchise agreement with Southwest Gas

Council extends franchise agreement with Southwest Gas

By Kerry Lyman

The Fernley City Council extended a franchise agreement with the Southwest Gas Corporation for 25 years during the Nov. 19 meeting, ensuring the city continues to receive 5 percent of the company’s gross revenues generated within the city’s boundaries.

That percentage can be significant to the city’s income, generating more than $2.3 million to the city’s coffers between fiscal 2023 and 2025, according to City Treasurer Robert Carson. 

The current franchise agreement was due to expire on July 1, 2026, according to a staff report.

When Carson was asked why Southwest Gas pays the city a franchise fee when there is no competition for gas service, because it’s common for cities to only receive franchise fees when a city grants an “exclusive” franchise to an entity providing competitive services, Carson said the fee, up to 5 percent of gross revenues, is allowed by state law, probably because utility companies essentially have a monopoly on their services.

Carson said NV Energy also pays the city a franchise fee of about 5 percent.

Section 12 of the franchise agreement with Southwest Gas has been updated to include 5 percent of gross revenues collected from gas delivery within the city to be paid to the city within 30 days following the end of each quarter, the staff report said.

In fiscal year 2023, the Southwest Gas franchise fee generated $744,927 to the city, $959,753 in fiscal year 2024 and $617,805 in fiscal year 2025, according to Carson. Asked about the curious one-third drop in franchise fees between 2024 and 2025, Carson surmised it may be due to a warmer winter or something like that.


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Comment author: Alan ReederComment text: Great guy, laughed easily, had fun with his students, enjoyed our time together at FHS!Comment publication date: 4/23/26, 10:23 PMComment source: Howard David JacksonComment author: Jack & Nancy CookComment text: Wonderful man. Created a precious family with Linda. Will always respect and admire his contribution to teaching at FHS.Comment publication date: 4/18/26, 10:27 AMComment source: Howard David JacksonComment author: JeffDickersonComment text: Very well reported, even though our motion was denied.Comment publication date: 4/15/26, 11:05 AMComment source: Judge allows Fernley City Council to proceed with corrective agenda item in Lau expulsion caseComment author: Todd fossumComment text: Hi my name is todd fossum i'm clarence's stepson, I was wondering if he had any siblings. I think he said he had a sister that just survived cancer. If she can get ahold of me or any buddy, my number is 916. 3 4 3 1 1 7 7.Thank you have a blessed dayComment publication date: 1/16/26, 4:33 PMComment source: Clarence L Shields C Comment author: Carl HagenComment text: So just curious, what is the point of a franchise agreement if it is not exclusive?Comment publication date: 12/15/25, 4:18 PMComment source: Council approves non-exclusive franchise agreement for waste collection C Comment author: Christine S GleasonComment text: In the first photo, the woman in the middle, wearing the black shirt, is SaraH Jean Gleason. She is not an FHS Leadership Student but is the person who is responsible (with the help of her father) for starting the Fernley Community Thanksgiving Dinner in 2011. She attended this year's dinner while home from Arizona State University, where she is working on her PhD.Comment publication date: 12/8/25, 8:52 PMComment source: About 400 meals served at Community Thanksgiving Dinner
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