Florence council approves first reading to allow 20-year electric franchise bids

The Florence City Council on Aug. 19 gave first reading to ordinance O-19-2025, an ordinance that would authorize the city to solicit bids for a nonexclusive 20-year electric franchise for placement of transmission, distribution and retail electrical facilities in city rights-of-way.

City staff described the ordinance as a procedural step to enable public bidding rather than a decision to change rates or immediately impose a fee. City staff member Hunt said, "This ordinance is a necessary legal step in order for us to take this to bid. It does not raise electric rates. It does not impose or implement a franchise fee." Hunt said the ordinance reserves the council's right to impose a franchise fee of up to 5% of franchisees' gross receipts from sales to customers inside Florence’s corporate limits.

According to the ordinance text read at the meeting, the franchise would cover placement and maintenance of equipment in public rights-of-way and include provisions on compliance with laws, indemnification, insurance, cancellation and bid requirements. If the ordinance is passed after subsequent readings, the city will publicly bid the franchise; staff said Duke Energy and other utilities are likely bidders. Hunt said that after bid responses arrive, council would have 30 days to accept or deny any award by municipal order.

Council moved and seconded the ordinance for first reading; the council then took a roll-call vote. Councilmembers Wingo, Chambers, Wynne, Whelan, Schneider and Cable voted yes and the motion to advance the ordinance passed 6-0.

The full text of O-19-2025, including exhibits, was made available for inspection in the office of the city clerk at the Florence Government Center during regular business hours. The ordinance will return to the council for further consideration after the bidding step described by staff.