Negotiations are underway and LCEC is optimistic that a new franchise agreement can be reached. The prior franchise agreement expired in October, 2016 after nearly two years of unsuccessful efforts to renew the agreement.
What is being negotiated
A franchise agreement simply allows a utility to locate its facilities, such as poles and wires, within the right-of-way of a local government’s geographical boundaries. Since LCEC began lighting up the homes and businesses of Cape Coral in 1958, we have been proud to be part of the community. Cape Coral residents serve on the Board of Directors, employees live, work, and play in Cape Coral and the organization works hard to provide reliable, cost competitive electricity and quality service to all of our customers. We know it is in the best interest of Cape Coral citizens that LCEC continues to energize the community.
A negotiating team consisting of the Cape Coral City Manager, LCEC Chief Executive Officer, and a Cape Coral Council for Progress task force has begun to discuss potential terms for a new agreement. Although the prior agreement expired more than nine months ago and any implied contract terms have since been terminated, LCEC continues to provide reliable low-cost service to all of its members in the City and to collect and remit fees to the City for LCEC’s use of the City’s right-of-way. Several of the City’s desired terms for a new agreement have already been addressed by LCEC.
It’s important that the negotiating team remain positive, be reasonable, and work together to finalize an agreement that is in the best interest of LCEC members, many of whom are also Cape Coral citizens. The prior franchise agreement served customers well and it is similar to the existing franchise agreements that LCEC has with Lee County, City of Sanibel, City of Marco Island, and Everglades City so we are hopeful a new mutually beneficial agreement can be reached soon.