Commission adopts new Duke Energy franchise agreement; city to receive 6% franchise fee
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Summary
The commission approved an ordinance granting Duke Energy franchise rights to use municipal rights of way. The new agreement includes a 6% monthly franchise fee on base revenues and language ensuring franchise fees continue to the city during contract gaps.
The commission voted unanimously to adopt an ordinance granting Duke Energy a franchise to occupy municipal rights of way to provide electric service.
City Attorney Danielle summarized the agreement and flagged two finance-related provisions: a 6% franchise fee on Duke’s base revenues, which she said is industry standard, and a clause ensuring the city continues to receive franchise payments if the existing agreement expires before a new one is executed. “The franchise fee will continue until such time as a new franchise fee agreement is entered into,” Danielle said.
Katie Christian, director of government and community relations for Duke Energy, attended the meeting and offered to answer questions. She said the company values its partnership with the city and is available to support municipal needs.
The commission approved the ordinance by roll call vote. The city manager and city attorney had reviewed the agreement and noted the changes from the prior franchise.