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Council approves first reading of franchise ordinance allowing Santee Cooper to operate in Atlantic Beach
Summary
Atlantic Beach council approved first reading of Ordinance 7-2025 to grant Santee Cooper a franchise to operate electric facilities in town; the 20-year option offers a 40% revenue-match into an undergrounding fund and is funded by a 5% franchise fee collected on customer bills.
The Town of Atlantic Beach on April 14 approved the first reading of Ordinance No. 7-2025, a franchise agreement that would allow Santee Cooper to own, operate and maintain electric utility facilities in town.
Town Manager Linda Cheatham told council the agreement renews a franchise originally established in 1975, restores an underground-wire agreement removed in a prior amendment and offers matching revenue options tied to the contract term. "The Town has to match the funds at 40 percent and it goes for 20 years, I believe," Cheatham said. She added the franchise incorporates prior Santee Cooper franchising ordinances.
Anna Strickland of Santee Cooper explained how the revenue match is weighted by term: "ten years you get 20 percent; 15 years you get 30 percent; and 20 years you get 40 percent." She said the town currently receives roughly $21,000 a year from the franchise fee and that at 40% the annual amount would be about $16,800 to the town's underground fund. Strickland described the franchise fee mechanism as a five-percent charge collected on customers’ electric bills that flows to the town in exchange for use of easements and utility infrastructure.
Council and staff discussed that the undergrounding work is capital-intensive — council member John David referenced an estimate that burying beachfront power lines could run about $2.9 million — and emphasized the need to pair the match money with grant funding so the town can use the funds before any term expiration. "So, we need to be cognizant of that and pass that on to whomever after we're here," David said.
Council voted in favor of the ordinance's first reading by roll call. The ordinance will return to a later meeting for any additional readings required by town rules.
What happens next: The first reading passed; the council will consider subsequent procedural steps required for final adoption and staff said they will continue discussions with Santee Cooper about matching and grant opportunities.
