Arizona Franchise Agreements

Franchise agreements are specific voter approved contracts negotiated between Southwest Gas and local governments that are required by the Arizona Constitution.

Partnering With Your Community

A franchise agreement provides Southwest Gas non-exclusive access to use a city’s, town’s or county’s public rights-of-way to safely install, maintain and replace our natural gas facilities for a 25-year term. In exchange for those rights, Southwest Gas agrees to provide a city or town an annual payment equal to 2% of the revenue the company generates from the sale or delivery of natural gas to customers within that jurisdiction. Franchise fee revenue supports services like parks and recreation programs, public safety and road improvements that make the communities we serve great places to live.