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Bill

Bill

SB 271

Municipalities, natural and manufactured gas utilities, certain fees and charges in connection with the use public streets and places restricted

2025 Regular Session

Alabama restricts municipal fees charged to natural gas utilities for public street use, reducing local government revenue sources.

Enacted
#counties&municipalities
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Bill Summary · SB 271

Legislative bill overview

SB 271 restricts the fees and charges that municipalities in Alabama can impose on natural gas and manufactured gas utilities for using public streets and places. The bill limits municipal authority to collect utility franchise fees or similar charges from these gas providers. This became law in May 2025 after being delivered to the Governor.

Why is this important

Municipalities typically rely on utility franchise fees as a revenue source for maintaining infrastructure, street repairs, and public services. By restricting these fees for gas utilities, the bill reduces municipal income while potentially affecting the quality of public infrastructure maintenance. This creates a tension between utility operational costs and local government funding needs.

Potential points of contention

  • Municipal revenue impact: Cities and towns lose a revenue stream that typically funds street maintenance, sidewalk repairs, and emergency services
  • Utility cost shifting: Gas utilities may face reduced operational costs, but unclear whether savings are passed to consumers or retained as profit
  • Selective application: The bill targets only gas utilities—it's unclear why other utilities (electric, water, telecommunications) are treated differently or if this creates competitive imbalances

Compiled from official sources — confirm details with the bill’s official record.

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