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Southwest Gas Franchise Agreement Proposition 413

Southwest Gas Franchise Agreement Proposition 413: What You Need to Know

In November 2020, the city of Las Vegas will vote on Proposition 413, a proposed franchise agreement between the city and Southwest Gas. The agreement would allow Southwest Gas to continue providing natural gas service to the city for the next 20 years, with the possibility of a 10-year extension.

If you are a resident of Las Vegas or a business owner in the area, you may be wondering what this agreement means for you. Here is a breakdown of the key points to consider:

What is a Franchise Agreement?

A franchise agreement is a contract between a municipality and a utility company that grants the company the right to operate within the city limits. The agreement typically includes terms regarding rates, fees, and the length of the franchise term.

In the case of Southwest Gas, the company has been operating in Las Vegas since the 1950s under various franchise agreements. The current agreement is set to expire in 2021, which is why the new proposition is being put to a vote.

What Does Proposition 413 Include?

Proposition 413 outlines the terms of the new franchise agreement between the city and Southwest Gas. Some of the key points include:

– A 20-year term with the option to extend for 10 additional years

– A franchise fee of 3% of the company`s gross revenue, which will be paid to the city

– A promise from Southwest Gas to maintain and upgrade its infrastructure to ensure safety and reliability

– A requirement for the company to provide emergency response services in case of natural gas leaks or other incidents

What Are the Pros and Cons of Proposition 413?

Proponents of Proposition 413 argue that it is a necessary agreement that will ensure the continued availability of natural gas service in the city. They also point out that the franchise fee will provide a source of revenue for the city, which can be used to fund important services and initiatives.

Opponents of the proposition, on the other hand, argue that it does not go far enough in terms of renewable energy. They argue that Las Vegas should be moving away from fossil fuels like natural gas and toward cleaner sources of energy like solar and wind power.

What Should You Do?

If you are a resident of Las Vegas or a business owner in the area, it is important to educate yourself on the details of Proposition 413 and make an informed decision when you vote. Consider the pros and cons of the agreement and weigh them against your personal beliefs and values.

Remember that this is not just a decision about Southwest Gas, but about the future of energy in Las Vegas and the role that natural gas will play in that future. Whatever your stance, make sure to exercise your right to vote and have your voice heard.