The Ocala City Council unanimously approved a new 30-year natural gas agreement with Peoples Gas System on Tuesday after engaging in a debate regarding why the city allowed the previous contract to remain expired for four years without formal renewal.
Under Ordinance 2027-3, the city granted Peoples Gas System, a division of Tampa Electric Company (TECO), a non-exclusive franchise to construct, maintain, and operate natural gas distribution pipelines throughout public rights-of-way across Ocala.
The updated agreement establishes a 30-year term and maintains a 6 percent franchise fee on gross revenues derived from local gas sales, generating approximately $622,000 annually for the city’s General Fund…