HomeMy WebLinkAboutA010 - overview of hte legal framework for gas utility franchises Doug Marek/cOA D�r�
07/01/2008 12:13 PM To Sheila K Lundt/COA@COA
CC Diane R Voss/COA@COA
bcc
Subject Gas Franchise--Legal Authority
Here is an overview of the legal framework for gas utility franchises:
1) Gas utilities are subject to rate regulation by the IUB. Iowa Code section 476.1
required to file a tariff and to prove the reasonableness of service fees. 476.4. Administrative
IUB provide for the manner of rate regulation. There is no service territory requirement(1) Each utility is
is for electric. nistrative rules e the
for gas like there
2) Municipalities may charge for the location and operation of public utilityfacilities
government right-of-way. 480A.1. The municipality may charge a right-of-way mans e
franchise fee, but not both. 480A.3. hies in the local
g ment fee or a
3) A municipality may grant a franchise to a gas utility within the city but not for
than 25
years. 364.2. The granting, extending, amending,
ar ingewmg of a franchise must be donee by ordinance
following published notice (4-20 days)and public
4) The City or the utility may require that the franchise issue go to a vote at the next
eligible electors filing a petition may request submission of the franchise question to the voters at a
regular or special election. (The election can be avoided as long as a petition is notfil election. 10% of the
5) The franchise ordinance may regulate the conditions required and the manner led.)
Public grounds of the city. It may even include the authority
private property! The City may charge a fee for the franch se.I ven 364.2(4)e
64by 2��e City to the utilt of the y to condemn and
Doug Marek
Ames City Attorney
515 Clark Avenue
P.O. Box 811
Ames, Iowa 50010
Tel: 515-239-5146
Fax: 515-239-5142
E-mail: dmarek@city.ames.ia.us
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