City increases electric company's franchise fee Increase to be passed on to Westar Energy customers' monthly bills
The Fort Scott City Commission approved a new franchise agreement - which comes with an increase - with Westar Energy during its Tuesday meeting.
City Manager Dave Martin and Westar Energy Business Manager Kari West explained the 10-year agreement to commissioners. Martin said he had previously met with West to discuss an increase in the city's franchise fee with the company.
"The city has increased their franchise fee from 5 to 6 percent," Martin said. "We have to pass an ordinance."
Martin said with the increase and new agreement, the city will bring in about an additional $108,000 annually into the city's general fund. The new ordinance commissioners passed states Westar will have the "right to construct, operate and maintain electric transmission, distribution and street lighting facilities within the corporate limits of the city of Fort Scott."
The agreement will allow Westar to continue using the city's right-of-ways, utility easements and "things like that" to provide its services, Martin said.
Martin said Westar will "pass on" the cost of the increase to its customers.
"Westar has been great to work with," he said.
West, speaking on behalf of Westar, said she "supports the agreement" and the company "wants to work with the city."
Mayor Cindy Bartelsmeyer asked West if the agreement affects commercial and residential customers.
"Yes," West said. "Anyone who pays an electric bill."
After the meeting, Martin said customers would see a 1-percent increase in their energy bill.
The ordinance states Westar has the "non-exclusive right, privilege, and franchise to construct, maintain, extend and operate its facilities in, through, and along the right-of-way of the city for the purpose of supplying electric energy to the city and the inhabitants thereof for the full term of this franchise."
The ordinance also states that "upon 60 days advance written notice by the city, the franchise fee percentage rate may be changed on the fifth, 10th or 15th anniversary of the effective date of the ordinance."