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January 9, 2013

Clinton OKs franchise agreement

CLINTON — The Rules and Regulations Committee approved a franchise agreement with Cedar Rapids-based electricity company ITC Midwest during its Tuesday morning meeting.  

ITC Midwest purchased all of the transmission lines from Alliant Energy in 2007. By entering into the franchise agreement, the city gives ITC Midwest the right to operate, construct and maintain the power lines. 

Unlike the franchise agreement between the city and Alliant Energy that was passed last year, the agreement with ITC Midwest doesn’t contain any franchise fee language.

“There’s nothing in here about any franchise fees or anything, because of course they don’t bill directly for anything,” City Attorney Jeff Farwell said.

The charge for ITC’s service does appear on a customer’s energy bill, but adds up to a very small amount.  

The Alliant agreement and the ITC Midwest contracts are non-exclusive and don’t conflict with one another.  “It’s pretty straightforward,” Farwell said.  

The agreement will move to the Committee of the Whole’s Jan. 22 meeting. 

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