Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Franchise topic
No spam. Unsubscribe anytime.
Iowa City gives first consideration to MidAmerican renewals, formalizes small co-op franchise
Summary
Council gave first consideration to renewals of MidAmerican Energy's electric and gas franchises and advanced a new franchise with Eastern Iowa Light & Power Cooperative to apply a 2% franchise fee in a limited service area; staff said the steps align franchise terms to end together in 2032.
The Iowa City Council on May 19 gave first consideration to franchise renewals for MidAmerican Energy and approved first consideration of a new franchise for Eastern Iowa Light & Power Cooperative as part of the city’s effort to formalize right‑of‑way use and align franchise terms through December 2032.
Assistant City Manager Kirk Lehman told council the city’s franchise agreements govern utilities’ use of public right‑of‑way in exchange for compliance with city requirements. "25 years is the max term allowed, under state law," Lehman said, noting the city entered a 25‑year agreement with MidAmerican in 2007 and that the renewal would extend those arrangements through 2032. Staff recommended approval, citing MidAmerican's partnerships on renewable energy and local projects.
Lehman also described a distinct situation with Eastern Iowa Light & Power, a rural electric cooperative serving a small portion of western and southern Iowa City. He said the proposed agreement would allow the equitable application of the city's 2% franchise fee (effective Oct. 1) in the cooperative's small in‑city territory and terminate concurrently with MidAmerican’s agreement. Councilors asked about estimated revenue from the 2% fee; Lehman said staff did not have a precise revenue estimate but believed the number of accounts in the city was small and the amount nominal. Council approved first consideration motions on these franchise items by unanimous roll calls.
