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Council holds first reading of Duke Energy franchise; 6% franchise fee continues
Summary
On first reading, council approved Ordinance 883 granting Duke Energy Florida a right-of-way franchise with a 30-year term and automatic renewals; the ordinance continues a 6% monthly franchise fee formula. Staff and the city attorney said obligations for the city are limited mainly to administrative notifications regarding annexation.
The council completed the first reading of Ordinance 883 to grant Duke Energy Florida a municipal franchise for electric utility right-of-way use. The ordinance as presented establishes a 30-year term with two automatic five-year renewals; the city attorney and staff noted the agreement continues a 6% franchise-fee payment based on Duke Energy's base revenues for the preceding month. A Duke Energy representative, Mr. Mixon, was present to answer brief questions about the relationship and to thank the city for local cooperation: "...we appreciate very much the relationship that we have with the City of Mexico Beach and also with the customers that we serve here." The first reading passed; staff scheduled the second reading for April 20.
City legal counsel noted the main ongoing city obligation is administrative: providing a signed copy of annexation ordinances to Duke Energy for service-area adjustments and assisting with address information when possible. Councilors discussed the revenue amount the 6% franchise fee historically produced for the city and confirmed attorney review before the ordinance's presentation.
