Negotiations with the City Reach Impasse Again

Despite numerous concessions to the City, it appears negotiations on a new electric service franchise agreement are at a standstill once again.

Having reached an impasse, LCEC presented a final franchise agreement proposal for review by the City Council, outlining the numerous concessions made to accommodate City positions. This includes reinstating a purchase option not found in any other LCEC franchise agreement, and the City’s desire to double the franchise fees it charges to customers pending public Council approval. It also includes numerous provisions to enhance relationship-building and transparency.

ALL positions outlined in the franchise agreement proposal were discussed at length during negotiation sessions facilitated by the Council For Progress (CFP), with participation of City staff leadership and LCEC. We appreciate the time and effort the CFP Task Force invested in the negotiation process.

Though disappointing, reaching impasse does not have a critical impact on our members in the City. LCEC will simply continue to provide electricity as we have in the past, without a franchise agreement, and continue to collect and remit a three percent fee for our use of the City’s rights-of-way.

Leave a Reply

Your email address will not be published. Required fields are marked *