Franchise Agreement

Q) Why does LCEC believe a franchise agreement with the City of Cape Coral is the best option?
A) LCEC has managed the electric system for more than 75 years. The system is strong and reliable, and rates are among the lowest in Florida. As a not-for-profit electric cooperative, LCEC has no profit motive and is committed to providing the most reliable service possible at the lowest achievable rate. We believe continued service is in the best interest of all customers.

Q) What franchise agreement negotiations have taken place?
A) LCEC provided a framework franchise agreement to the City in March 2015, asking the City to use this framework to suggest specific agreement terms for negotiation. A response to the framework agreement was provided by the City in March 2016. Several meetings between a professional negotiator hired by the City and LCEC’s CEO took place late 2016. After the city withdrew a complaint filed with the Florida Public Service Commission, renewed talks began in 2017 facilitated by the Council for Progress. The City and LCEC unfortunately, reached an impasse in negotiation in September 2017.

Q) Why did LCEC declare an impasse in negotiation?
A) Despite years of effort and numerous concessions to meet City positions, negotiations reached a stalemate over City demands that would force LCEC to abandon its cooperative business model, and relinquish governance responsibilities.

Q) Does LCEC have other franchise agreements in place at this time?
A) Yes. LCEC has franchise agreements with Everglades City, City of Sanibel, City of Marco Island, and Lee County.

Q) What happens to my electric service without a franchise agreement?
A) Nothing, LCEC proudly continues to provide you the most reliable electric service at the lowest cost possible as it has to its members for the past 75 years.

Cape Coral Franchise Agreement

Take a look at the previous Cape Coral Franchise Agreement that was in effect since October 1986 and expired in October 2016, as well as the franchise agreement proposal provided to the City in September 2017.

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