Franchise contract talks continue between city, LCEC
Little progress has been made in the last month toward negotiating a new franchise agreement between Cape Coral and electric utility LCEC, according to sources.
The city’s one-month extension request to the Public Service Commission to hold its complaint against LCEC in abatement expired again on Monday.
While several meetings have taken place between the parties as well as phone calls, no settlement has been reached on any of the bargaining points, and likely won’t until the city files another extension with the PSC.
“Nothing has been agreed upon,” said LCEC spokesperson Karen Ryan. “There has been no stop to the discussions. That’s a good sign that they are willing to talk.”
LCEC is very interested, however, in seeing the city extend its abatement period for more than a month at a time.
“We are waiting to hear from the city about an extension so we can continue to work on their requests and, hopefully, move closer toward negotiating the terms of the franchise agreement.”
The city has made several one-month extensions since filing the complaint in March, putting the case on hold so that negotiations could continue with the electric service provider. LCEC was not willing to negotiate simultaneously while the PSC was considering the complaint.
A separate discussion was initiated by the city last June when city negotiator Stuart Diamond talked to LCEC CEO Dennie Hamilton about the city buying the streetlight system.
“We’ve had several discussions with city staff regarding their desire to own and manage streetlights,” Ryan confirmed. “That’s not typically something that’s part of a franchise negotiation and does require that we engage consultants to help us with a review of what may and may not be possible to bring costs down for the city.”
Such a purchase would give the city more control, city officials said.
“I’m not sure where the idea came from, but it would allow us to put up solar power lights and LEDs,” said Councilmember Richard Leon. “Getting LCEC to put up LEDs was like a fight. Purchasing the system would give us more flexibility than LCEC will allow. We could put up decorative lighting in the entertainment district and make enhancements in the future. Trying to go through a third party like LCEC we get hassled.”
Diamond would not comment on the streetlight, franchise agreement or the PSC abatement issues at this time saying, “Nothing has been agreed on but he might have some news next week.”
The city’s 30-year franchise agreement with LCEC expired on Oct. 1, but the terms of that agreement continue in place until a new agreement is finalized.