(a) 
The City of La Grange shall have the full power, to the extent the same is conferred by the Constitution and laws of the State of Texas, to own, lease, operate, prohibit, regulate and control any public utility within or without the limits of the City and to provide for the compensation and rental to be paid to the City by any public utility for the use of its streets, highways, and public areas.
In addition to the City’s power to buy, construct, lease, maintain, operate, and regulate public utilities and to manufacture, distribute, and sell the output of such utility operations, the City shall have such regulatory and other powers as may now or hereafter be granted under the Constitution of the State of Texas.
(b) 
Each utility operating under a franchise shall maintain in the City a business office where customers can pay bills and present bills for payment.
The City Council shall have the power by ordinance to grant, amend, renew, and extend all franchises of all public utilities of every character, including cable television, operating within the City of La Grange. All ordinances granting, amending, renewing or extending franchises for public utilities shall be read at two (2) separate regular meetings of the City Council and shall not be finally passed until thirty (30) days after the first reading; and no such ordinance shall take effect until thirty (30) days after its final passage; and, pending such time, the full text of such ordinance shall be published once a week for three (3) consecutive weeks in a newspaper of general circulation of the City of La Grange and the expense of such publication shall be borne by the proponent of the franchise. No public utility franchise shall be granted for a term of more than twenty (20) years (or ten (10) years in the case of cable television franchise) nor be transferred except with the approval of the City Council expressed by ordinance.
Where the powers of annexation included in Article I are exercised by the City, and there exists public utility property adequately serving the inhabitants thereof, the owner of such utility property shall be granted a franchise to continue its operation in the annexed territory for a period of not more than twenty (20) years from the date of annexation of such territory. The City retains the right to negotiate with the utility for the purchase of such property prior to this time, if the City Council deems it to be in the best interest of the City.
Franchises granted by the City under this Charter shall be considered to be of no value in fixing reasonable rates and charges for utility service within the City, and in determining the just compensation to be paid by the City for public utility property which the City may acquire by condemnation or otherwise.
All grants, renewals, extensions or amendments of public utility franchises, whether so provided in the ordinance or not, shall be subject to the right of the City Council:
(a) 
To repeal the same by ordinance at any time upon the failure of the grantee to comply with the terms of the franchise, the ordinance, this Charter, any applicable statute of the State of Texas, or the rule of any applicable governmental body, such power to be exercised only after written notice to the franchise holder stating wherein the franchise holder has failed to comply with the terms of the franchise, and setting a reasonable time for correction of such failure, and such power shall be exercised only after the grantee has been given the opportunity for hearing.
(b) 
To establish reasonable standards of service and quality of products and prevent unjust discrimination in service or rates.
(c) 
To require such expansion, extension, and improvement of plants and facilities as are necessary to provide adequate service to the public; and to require that maintenance of facilities be performed at the highest reasonable standard of efficiency.
(d) 
To prescribe the accounts and accounting system to be used by a public utility so that they will accurately reflect the value of the property used in rendering its service to the public; and the expenses, receipts, and profits of all kinds of such franchises. It shall be deemed sufficient compliance with this paragraph if the franchise keeps its accounts in accordance with the uniform system established by an applicable Federal or State agency for such service. To examine and audit, at any time, the accounts and other records of any utility; and to require annual and other reports including reports on operations within the City of La Grange.
(e) 
To impose such reasonable regulations and restrictions as may be deemed desirable or conducive to the health, safety, welfare and accommodation of the public.
(f) 
To require such compensation and rental as may be permitted by the laws of the State of Texas.
(g) 
To require the franchise holder to restore, at his/her expense, all public or private property to an equal or better condition than before being damaged or destroyed by construction, maintenance, or removal by such franchise holder.
(Amnd. at an election held 5/1/21)
The consent of abutting and adjacent property owners shall not be required for the construction, extension, maintenance or operation of any public utility; but nothing in this Charter or in any franchise granted hereunder shall ever be construed to deprive any such property owner of any right of action for damage or injury to his/her property as is now or hereafter may be provided by law.
(Amnd. at an election held 5/1/21)
All extensions of public utility service within the City limits shall become a part of the aggregate property of the public utility, shall be operated as such, and shall be subject to all the obligations and reserved rights contained in this Charter. The extension of any public utility shall be considered as a part of the original grant and shall be terminable at the same time and under the same conditions as the original grant.
All franchises heretofore granted are recognized as contracts between the City of La Grange and the grantee, and the contractual rights as contained in any such franchise shall not be impaired by the provisions of this Charter, except that the power of the City to exercise the right of eminent domain in the acquisition of any utility property is in all things reserved; and except the general power of the City, heretofore existing and herein provided for to regulate the rates and services of a grantee, shall include the right to require proper and adequate extension of plant and service and the maintenance of the plant and equipment at the highest reasonable standard of efficiency. All franchises hereafter granted shall be held subject to all terms and conditions contained in the various sections of this Article whether or not such terms are specifically mentioned in the franchise.
Accounts shall be kept for each public utility owned or operated by the City in such manner as to show the true and complete financial results of each such City ownership and operation. The accounts shall show the actual capital cost to the City of each public utility owned, the cost of all extensions, additions, and improvements; and the source of the funds expended for such capital purposes. The accounts shall also show all assets and all liabilities of each utility appropriately subdivided by classes, depreciation reserve, other reserves and surplus, and revenues, operating expenses including depreciation, interest payments, rentals and other disposition of annual income including the cost of any service furnished to any other City department. The City Council shall annually cause an audit report to be made, by a Certified Public Accountant, and shall publish in a newspaper of general circulation of the City of La Grange, a summary of such report showing the financial results of such City ownership and operation, giving the information specified in this section and any other data the Council shall deem to be pertinent.
The City Council shall have the authority and power to sell and provide electricity, water, sewer and/or other utility services to persons or firms outside the City limits of La Grange and permit them to connect with City systems under contract with the City, under terms as are fair and reasonable and for the best interests of the City. The Council shall have the authority to prescribe the kind of materials used where it furnishes such services, to inspect same and require them to be kept in good condition, at all times, and to make such rules and regulations as shall be necessary and proper, and to prescribe penalties for non-compliance.
The City Council shall have full power, after due notice and hearing, to regulate by ordinance the rates, charges, and fares of every public utility franchise holder operating in the City. Every franchise holder who shall request an increase in rates, charges or fares shall have, at a hearing of the Council called to consider such request, the burden of establishing by clear, competent, and convincing evidence the value of its investment property allocable to service in the City, the amount and character of its expenses and revenues connected with the rendering of such service, and any additional evidence required by the Council. If no agreement between the Council and the franchise holder can be reached on such request for an increase in rates, charges or facts, the Council may select and employ rate consultants, auditors and attorneys to investigate and, if necessary, litigate such request. The franchise holder shall reimburse the City for its reasonable and necessary expenses so incurred.