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Commission approves first reading of Duke Energy franchise agreement, schedules June 16 public hearing
Summary
The commission approved first reading of a 10‑year Duke Energy franchise agreement that retains a 6% franchise fee and adds right‑of‑way and notification provisions; staff said the city collected about $7.6 million in franchise fees from Duke in 2025. Second reading/public hearing set for June 16, 2026.
City staff summarized a negotiated 10‑year franchise agreement with Duke Energy on May 19 and the commission approved the ordinance on first reading, scheduling a second‑reading public hearing for June 16, 2026.
Staff outlined key points of the agreement: the 6% franchise fee remains unchanged, most‑favored‑nations language was retained, the city added requirements for notification of significant right‑of‑way projects and standards for tree trimming and debris removal, and the automatic renewal provision from the prior agreement was removed. The agreement also includes a provision that allows the city to generate or sell energy capacity consistent with applicable rules and regulations.
A Duke Energy representative (government/community relations) told the commission that the city collected approximately $7.6 million in franchise fees from Duke in 2025. Commissioners asked how much the 6% fee nets the city annually; staff said the figure would be verified but indicated it was in the several‑million‑dollars range.
Commissioners praised improvements to communications and storm response and moved to approve first reading and schedule a public hearing on June 16, 2026. The motion carried 5–0.
Outcome: Ordinance granting Duke Energy a franchise for use of municipal streets and rights‑of‑way approved on first reading; public hearing and second reading scheduled for June 16, 2026.
