The county charges utility providers franchise fees. The rates have been static for nearly 30 years. The fees are charged to utility providers in exchange for such providers' use of the various public rights of way needed by these companies to service their customers. This practice is ubiquitous throughout the state and in counties throughout the country. Moreover, it is an important revenue source for the county.
Unlike the city of Pensacola--our County's rates are derived as a percentage of the utility commodity utilized by the consumer--currently 5% of the bill, capped at $10.00.
The rate paid by utility consumers within the city limits of Pensacola are 6% of the utility commodity utilized--without any cap on the total amount.
This distinction is important.
It means, in a nutshell, that the recent utility bill spike in FPL bills that is hurting individuals is much more acute in the city of Pensacola---as their franchise fee increases proportionately as the bills increase (according to staff familiar with this matter)---whereas in the county this fee is capped at $10--regardless of how high a bill gets we are capped for a residential customer at $10.
In 2012, the county commission attempted to raise the, at that time nearly 20 year old, franchise fee cap by 50%--from $10 to $15 dollars--which would have raised a considerable, additional amount of revenue for the county as it continued to struggle to pull out of the Great Recession.
That 2012 initiative failed by a 2-3 vote, with Grover Robinson and Marie Young voting for the increase, and Commissioners White, Valentino, and Robertson voting no.
Read the 1994 Escambia County Franchise Fee agreement here.
Read the 2012 agenda item, suggested revision, and vote tally here
It might also be interesting to compare the franchise fees (and public service taxes paid in the city) paid by two neighboring families in adjacent homes, one with a green EUCA garbage can (county) and the other with a black garbage can (city). There are many similar examples where city and non-city homes sit side-by-side. In at least once case, East Royce Street, all or part of one side of the street is in the city and the other is not. It's crazy. Almost no one in the city knows that they pay more and higher utility franchise fees and taxes than out in the county. Their initial reaction is disbelief that turns to shock when told that the taxes and fees are paid by them not the utilities. Few people actually read their utility bills but if you live in the city the utility taxes and fees really add up quick.
ReplyDelete