What Is A Utility Franchise Agreement

Instead of setting up its own distribution company, the city opted for a new franchise agreement, creating a new clean energy partnership with its well-established utilities, which have made a common commitment to achieving the city`s climate and energy goals. The partnership consists of two representatives from each institution (two municipal councillors and two employees of each public service). In 2017, the city increased its existing customer franchise by 0.5 percent and directed royalties to initiatives to reduce energy bills and greenhouse gas emissions from residents and businesses in the city. “It`s not outside the scope of the possibility that another utility, whether it`s a utility that operates in California today or is considering an opportunity to operate in California, could submit a response to our request later this year and respond,” Caldwell said. JVJ Pacific Consulting has been awarded a $593,000 contract to be a city strategic advisor, to determine what the city should require from SDG-E, while helping to write a PSR that could be attractive to other potential bidders. The company has hired former PG-E General Counsel Howard Golub to run the city. Some cities have incorporated other energy targets into franchise agreements – or have signed parallel agreements – that require the city and distribution companies to cooperate to achieve common energy goals. If franchise agreements and related agreements are implemented, the city can deliver a large number of results, including additional revenue for urban services, new renewable energy projects and more collaborative working relationships between the parties. Minneapolis, Minn., stands out as the most innovative user of franchise fees in recent years. In 2013, when the existing franchise agreement with private and monopoly electricity and gas companies Xcel Energy and Centerpoint Energy was terminated, the city began exploring its legal opportunities to achieve climate protection and local energy goals. In an “Energy Pathways” study ( summary of the slideshow), the city looked at the lever for creating a city-specific supply company (which called the influence of the “birch rod,” as President Franklin D.

Roosevelt in his 1932 Portland Speech called the local authority`s bending. October 11- For the first time in nearly half a century, the City of San Diego is preparing to renegotiate a franchise agreement that gives San Diego Gas and Electric the exclusive right to use the city`s public law for transportation and distribution and to install wires, pylons, power lines and underground power lines. Siegele said that by changing the agreement, the city can ask the franchisee to encourage the development of a large number of programs, from solar power to micro-grids. Changes, he said, can also be made to the franchise fee, which could transfer the costs of payers to distribution company shareholders, as well as the city`s climate action plan to align it with the agreement. Jones, of SDG-E, said the supply company and the city “have been able to make significant progress on the Pure Water project, despite our differences on cost liability.” In exchange for transportation and distribution privileges within the city limits, SDG-E pays a franchise fee of approximately 3 per cent, derived from the company`s gross revenues from electricity and natural gas sales to customers paid to the city. About half of the money is billed directly to customers on their monthly SDG-E bill. The other half comes from a royalty listed as operating expenses for the distribution company. The American Public Works Association has published a guide to cities to identify their priority powers and how to implement a franchise agreement. ILSR has compiled below a map showing the states that allow cities to estimate deductible fees on electricity bills (for links to sources, to the Land, scroll down).