City of San Diego Franchise Fee Agreement

On Thursday, July 16, The City of San Diego’s Environment Committee voted 3-1 to accept a consultant’s report on the City’s franchise fee agreement with a number of small recommendations. The recommendations include the initiation of a Climate Equity Fund that would be capitalized by the winner of the franchise as well as assurances that the franchise fee bid winner retains utility employees and uphold wage increases that have already been negotiated.

The current franchise fee agreement expires January 2021 and Thursday’s Environment Committee action advances the process to renew the existing franchise agreement to the full city council for a formal vote. A franchise agreement dictates the terms by which a municipality allows a utility company the exclusive right to use public right-of-way’s for the transmission and distribution of gas and electricity lines.