The City of Buda has approved a five-year contract renewal with Pedernales Electric Cooperative (PEC). The new terms will have a higher franchise fee for the company to pay.
All surrounding cities have been receiving a 4.5% franchise fee through their electric company providers. Buda had done a 2% fee prior to the new ordinance, which council approved on Tuesday night.
The fee will be effective Jan. 1, 2021, through Dec. 31, 2026. The majority of PEC franchises pay a 2% fee, but Buda is one of the 10 cities that secured the new rate, according to Shannon Johnson, PEC public affairs of policy advisor.
“I know this is a decision that was not easily reached and I appreciate the work that everybody did to come to the agreement and I look forward to this franchise agreement going into effect,” Johnson said.