During a recent government meeting, officials discussed the franchise agreement with Encore, focusing on the financial implications and terms of the contract. The most recent franchise payment from Encore was reported at $36,972.77, based on the consumption of over 11 million kilowatt hours. The agreement, which affects multiple municipalities, stipulates a fixed franchise fee of 4% of gross revenues, a rate established during the deregulation of 2002.

Officials noted that while some cities have varying rates—ranging from 3% to 6%—the 4% rate is currently non-negotiable due to ongoing litigation regarding its calculation. The utility commission has not mandated any changes to this rate, which is embedded in the franchise agreement.

The current agreement is set to expire on June 30, 2044, with a provision for automatic renewal unless either party provides a 60-day notice of cancellation. This means that if the city wishes to terminate the agreement, they must notify Encore well in advance. The discussion highlighted concerns about being locked into a long-term agreement without built-in adjustments for inflation or rising costs, as the utility commission only requires a minimum of 3%.

Additionally, officials raised the issue of tree maintenance near power lines, suggesting that the agreement could potentially include stipulations for Encore to manage vegetation more effectively. However, they acknowledged that the primary purpose of the agreement is to grant Encore access to municipal rights-of-way, limiting the city's leverage in negotiating additional terms.

Overall, the meeting underscored the complexities of municipal utility agreements and the challenges of ensuring fair compensation and service standards over extended periods.