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Commission approves first reading of Central Florida Electric Cooperative franchise ordinance
Summary
On first reading the commission approved an ordinance granting Central Florida Electric Cooperative a 30‑year franchise to operate in a defined territory, establishing a phased franchise-fee schedule and allowing fee incentives for economic development; the ordinance moves to second reading in April.
The City of Newberry on Monday approved on first reading an ordinance granting the Central Florida Electric Cooperative (CFEC) a 30‑year electrical franchise and set a phased franchise-fee schedule to be collected from CFEC operations within the city's defined territory.
City staff explained that franchise agreements are contracts allowing utilities to use municipal rights-of-way to deliver service in exchange for compensation that typically supports public-works functions. Dallas (city manager) told the commission that CFEC is the last major electric utility in the city lacking a franchise agreement.
Key terms reported by staff include a 30‑year term; a franchise-fee structure mirroring the city's existing agreement with Clay Electric — 4% for the first 10 years, 5% for the next 10 years, and 5.5% for the final 10 years; and language allowing the city to reduce or waive the franchise fee for a specific customer as an economic-development incentive. Staff also said permitting fees for CFEC are waived in exchange for the franchise fee; CFEC will be responsible for its own infrastructure and must coordinate construction with city departments.
The presentation noted CFEC will indemnify the city for liability and damages related to utility operations. Commissioners asked about natural‑gas franchise practice and whether fees are typically passed to customers; staff responded that while the city cannot compel pass-throughs, utilities commonly do pass franchise fees to their customers.
Commissioner Martin moved approval on first reading of Ordinance 2025‑03 (title reading provided at the meeting); Commissioner Farnsworth seconded. The motion passed unanimously. Staff recommended scheduling second reading and adoption in April.
