Title
An ordinance to amend Appendix A, Fee Schedule, of the Code of the City of Rock Hill concerning franchise fee for electric power distribution.
Body
The City of Rock Hill has areas within our corporate limits that have electric power that is provided by Duke Energy or York Electric Cooperative rather than the City of Rock Hill. The City of Rock Hill does require that these providers pay an annual franchise fee to provide these services in the City limits. The cost of this fee is 3% of annual gross receipts of services provided to customers within our municipality, however, the City transfers an equivalent of 5% of their Electric Fund Other User Charges to the City’s General Fund. These fees are to maintain City infrastructure and for the use of City streets in order to provide electric service to their customers. The 5% fee is consistent with fees charged by other cities in our area. Staff recommends approval of this item.