Council moves FPL franchise extension to second reading; clarifies city cannot set electric tariffs

Bonita Springs City Council voted to advance a proposed extension of the electric‑utility franchise with Florida Power & Light Company to second reading, keeping current franchise terms in place for an additional five years while the city and FPL prepare to negotiate a longer agreement in the future.

The council’s action moves the ordinance — described by staff as a one‑time five‑year extension of the existing franchise agreement — to a second reading and continued negotiation. City staff said FPL has indicated no objection to an extension under existing terms.

Why it matters: the franchise agreement governs FPL’s use of the city’s rights‑of‑way and the city’s ability to collect a franchise fee; it does not give the city authority to set utility tariffs or to prevent FPL from pursuing rate changes set through state regulatory mechanisms.

City staff and councilors clarified that rates charged to customers are controlled by state utility tariffs, not the franchise agreement. A council member asked whether the city had any control over recent and proposed FPL rate increases; staff said it does not. As staff summarized: the franchise "allows FPL to utilize our right of way" in exchange for payment of a percentage franchise fee to the city; tariff‑based retail rates are set by state processes.

The draft before the council would extend the current terms for five years and preserve the city’s ability to seek adjustment of the franchise fee up to the statutory maximum (often cited as a percentage cap) during future negotiations. Staff said negotiations on a subsequent agreement would begin about a year before the new five‑year term expires.

Council asked staff to use the opportunity to raise other items with FPL, including a previous inquiry about undergrounding near local soccer fields. Charlotte Miller of FPL was present in the meeting room and was acknowledged for follow‑up on that point.

On the motion to advance the ordinance to second reading, council roll call recorded unanimous support; the item will return for second reading and further council consideration.