Enterprise has joined the ranks of nine other southern Utah cities allowing Mountain Fuel Supply to bring natural gas into their communities.
The action by the City Council brings to 10 the number of confirmed franchise agreements in Iron and Washington counties out of the 14 anticipated.Millard and Beaver counties have already been canvassed by the company and agreements have been signed.
To ensure the success of Mountain Fuel's southern drive, a number of standard requirements have been waived by the company, such as requiring 80 percent of the population to agree to hook up to the line.
The company also has guaranteed the same cost to new customers as is offered residents of Cedar City and St. George, where natural gas service is already in place.
The southern Utah price is approximately 22 percent higher than natural gas prices along the Wasatch Front.
However, the concessions cut both ways. Cities adopting the franchise have agreed not to impose any franchise tax on natural gas for at least two years. Under state statute, municipalities are allowed to impose a franchise tax of up to 6 percent on public services.
"We'll be coming in with no customers," said Mountain Fuel's southern region retail offices manager, Gary L. Olsen. "We need to build a base. We think it's only fair."
The gas will be tapped from the Kern River pipeline currently under construction from Wyoming to California.