Owingsville Delta gas franchise: 3% fee, non-exclusive, Sept. 1, 2026 start
Owingsville KY – The city adopted a natural-gas franchise ordinance, and a signed Delta agreement sets a Sept. 1, 2026 start with a 3% fee.
Owingsville’s natural gas franchise process is now tied together by three primary documents: an Owingsville ordinance creating the franchise framework, a signed franchise agreement with Delta Natural Gas, and a Kentucky Public Service Commission order approving the administrative step that lets Delta bid on the franchise. The most important date for residents is the franchise commencement date: September 1, 2026.
This explainer breaks down what each document does—and what residents can reasonably expect to see as the Sept. 1 start date approaches.
Quick timeline (the key dates residents should track)
Feb. 9, 2026: Owingsville adopted Ordinance No. 2-2026, creating a natural gas distribution franchise framework and setting a 10-year term structure.
March 2, 2026: The Kentucky PSC issued an order in Case No. 2026-00043 addressing Delta’s request for a certificate authorizing Delta to bid on the franchise created by the city ordinance.
Sept. 1, 2026: The signed franchise agreement states the franchise “shall commence” on this date.
What Owingsville approved in Ordinance No. 2-2026
Ordinance No. 2-2026 establishes the franchise rules Owingsville planned to use to award a natural gas distribution franchise. Two provisions stand out for resident impact:
1) The franchise is non-exclusive. The ordinance states the franchise is not exclusive and that the city reserves the right to grant a similar franchise to another entity at any time. It also says franchise extensions to newly annexed territory would be on the same general terms, but subject to approval of applicable state regulatory authorities.
2) The ordinance sets a franchise-fee formula based on gross revenues. Under the ordinance, the franchise fee is 3% of the franchisee’s gross revenues received from natural gas distribution services generated within Owingsville’s corporate limits, with payment terms set out in the franchise agreement.
In other words: the city ordinance is where the franchise framework and the gross-revenue-based fee structure come from.
What the signed Delta franchise agreement says (and when it starts)
The signed franchise agreement memorializes the deal terms between Owingsville and Delta. Two key items for residents:
1) Non-exclusive franchise, term structure tied to the ordinance. The agreement states the city granted Delta a non-exclusive franchise for a term of ten (10) years, and that the franchise expires as provided in Ordinance No. 2-2026.
2) A specific commencement date: Sept. 1, 2026. The agreement states the franchise “shall commence September 1, 2026” and then expire as provided in the ordinance terms.
Practically, the commencement date is the moment the franchise relationship described in the documents is intended to begin.
How the PSC order fits in: the “bid authorization” step
The Kentucky PSC order in Case No. 2026-00043 addresses Delta’s application for a Certificate of Public Convenience and Necessity (CPCN) that authorizes Delta to bid on the franchise established by the City of Owingsville.
Two parts of the order matter for understanding what this step does—and does not do:
Need-and-demand check only. The PSC explains its authority is limited to determining whether there is a need and demand for the service.
No ruling on franchise-fee ratemaking treatment. The order also notes it does not make findings about the qualifications of the bidder, the validity of franchise provisions, or the manner in which any franchise fee is to be treated for rate purposes.
So, the PSC order supports the administrative authority that makes the franchise-bidding step possible—but residents should not assume it automatically settles how franchise-fee costs are reflected in customers’ delivery charges.
What residents should watch between now and Sept. 1, 2026
Because these documents separate “franchise framework” from “PSC ratemaking,” the most useful resident focus is on where changes show up and what source explains them.
1) Watch for rate/tariff activity separately from franchise-start headlines. If any bill impact occurs, it will typically be explained through utility tariff/rate processes rather than the commencement date alone.
2) If your utility bill changes, ask which part changed. Residents can look for whether changes are tied to franchise-fee mechanics, fuel or other regulatory adjustments, or separate approved rate components.
3) Read the franchise documents for the fee formula—not for the exact monthly bill amount. The ordinance and agreement describe a gross-revenue-based franchise fee structure (including the 3% language), but they are not the same thing as a customer-by-customer price sheet.
FAQ
Is this the same thing as gas delivery rates?
Not automatically. The PSC order emphasizes that it does not determine franchise-fee treatment for rate purposes, and the franchise documents set a franchise-fee framework rather than a resident-facing delivery price schedule.
When do franchise terms begin?
The signed franchise agreement states the franchise “shall commence” on September 1, 2026, with expiration tied to the ordinance’s ten-year structure.
Where can residents find the official documents?
Key primary sources are Owingsville Ordinance No. 2-2026, the signed Delta franchise agreement, and the Kentucky PSC Case No. 2026-00043 order.
Sources
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