Can a utility be operated as a franchise?

Thousands of cities have the ability to leverage their franchise agreement negotiations into clean energy commitments from their electric utility. They can use franchise fees to fund new projects related to renewable energy, energy storage, and more.

What is a franchise agreement for utility?

A franchise agreement is a negotiated contract between a municipality and an electric service provider that grants the utility the right to serve customers in the city’s jurisdiction. These agreements commonly include stipulations regarding a utility’s right of way to install and maintain electrical infrastructure.

What is a franchise fee for a city?

Franchise Fees are fees paid directly to the City for city programs. It is a general fund and each city may use it for different purposes. For example, they may use it for a community clean-up or other city programs. Customers may get more information on franchise fee utilization from their local representative.

What is a municipal franchise?

municipal franchise means the right granted to a person by an urban municipality pursuant to an agreement entered into under the Municipal Government Act whereby a person provides natural gas service to an urban municipality or a portion of an urban municipality; Sample 1.

Are utilities taxable in Florida?

Florida Gross Receipts Tax on Utility Services. Gross Receipts Tax on Utility Services is imposed at the rate of 2.5% on the sale, delivery, or transportation of natural gas, manufactured gas (excluding liquefied petroleum [LP] gas), or electricity to a retail consumer in Florida.

Is a City franchise fee a tax?

Franchise fees that exceed the reasonable value of the franchise conveyed may be considered taxes, according to a California court of appeal. The plaintiffs, solid waste customers in the City, alleged that the City’s franchise fees were taxes subject to voter approval under Proposition 218.

Is a city franchise fee a tax?

What is a cable franchise agreement?

Cable franchise agreements provide the franchisee the right to construct, install, maintain and operate a cable system on County Public Rights-of-Way in exchange for the franchisee’s promise to provide cable service to residents of the County. …

What is utility tax in Florida?

What is the franchise charge on my FPL bill?

The FPL “franchise fee” is one of the more obscure taxes paid by local residents. It adds between 3 percent and 6 percent to most electric bills, and FPL passes on the money to local governments in exchange for having exclusive rights to run electric poles and underground wires above and below public roads and lands.

Why am I paying a franchise fee on my cable bill?

Franchise Fee Franchise fees are paid to local governments as compensation for Comcast’s use of the public rights-of-way and easements. The Federal Cable Act authorizes cable operators to collect from customers the full amount of franchise fees paid to local governments.

Can cities assess franchise fees on utility bills?

The American Public Works Association has published a guide for cities to identify their public right-of-way powers and how to implement a franchise agreement. ILSR has compiled a map, below, showing which states allow cities to assess franchise fees on utility bills (for links to sources, by state, scroll to the bottom).

Can a city set franchise fees?

Cities may be prohibited or excluded from pursuing franchise agreements, but are still able to set franchise fees. For instance, Tennessee and Nebraska both have the authority to assess franchise fees, but because their states are constituted by majority public utility, they are less likely to do so.

How many states can a city have a franchise agreement?

Cities in 40 states have the ability to pursue franchise agreements, with 10 states either excluded from this option (due to majority public utility or state management) or prohibited from doing so. Cities may be prohibited or excluded from pursuing franchise agreements, but are still able to set franchise fees.

What is a franchise fee on my bill?

Fees are assessed on the bills of customers of private companies, not usually customers of cooperatives or city-owned utilities. Typically, a franchise fee recoups the cost of the utility companies’ use of public space––also called public “right-of-way”––for energy infrastructure such as power lines or gas pipelines.