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City staff tells residents franchise fee on bills is charged by Huntsville Utilities, not the city
Summary
City staff told residents that the franchise fee appearing on some utility bills is imposed by Huntsville Utilities for use of the city—ootprint; the city did not add the charge and has posted detailed information and a contact for Huntsville Utilities on its website.
City staff and counsel explained during the Jan. 27 Owens Cross Roads council meeting that a franchise agreement with Huntsville Utilities permits the utility to use public right-of-way and that the fee appearing on some customer bills is a charge from Huntsville Utilities, not a city tax or charge.
Staff said the city does not impose or collect the fee and therefore cannot remove it from a customer bill; whether the utility passes the cost to customers is a decision of Huntsville Utilities. The city has posted a detailed breakdown on its website and will provide a point of contact at Huntsville Utilities for residents with continued questions.
City legal counsel and staff emphasized the fee is not a tax and encouraged residents with billing questions to contact the utility directly or ask city staff to connect them with the Huntsville Utilities representative.
