Committee blocks municipalities from layering franchise fees onto securitization charges, advances bill

A committee adopted a policy recommendation and reported out legislation intended to prevent municipalities from adding franchise or local fees on top of securitization charges passed through to utility ratepayers.

The sponsor told the committee the bill responds to concerns that some cities planned to add local franchise fees in addition to securitization fees the legislature authorized, a combination the sponsor said ‘‘was absolutely not the legislature's intent.’’ Committee members said utilities and ratepayers could face an estimated excess cost; the corporation commission estimated an excess of about $10 million if municipalities layered additional fees, the sponsor said.

Representative Cross Whitehater and others asked whether municipalities had already begun charging such fees; the sponsor said he was not aware that the fees had been widely implemented but noted legal uncertainty had led to litigation and a state supreme court action. The committee adopted the policy recommendation and reported the bill out by a 15-0 vote.