That`s a lot of money, but Caldwell said it`s necessary because it`s hard to understand how franchise rates should be structured — especially given the changes in the energy and supply sector in recent years. Among them: “This is a unique opportunity for the city of San Diego to make some changes to the franchise agreement,” said Tyson Siegele, an energy analyst at the Protect Our Communities Foundation, an environmental group. Last month, representatives of the City of San Francisco proposed to purchase the entire San Francisco power grid for $2.5 billion from Pacific Gas and Electric. The GMP, which is going through bankruptcy proceedings, does not appear to be interested in the deal, but San Francisco officials believe they can provide more reliable, safer and cheaper electricity than the distribution company. To understand this trend, NREL has developed a national dataset on communal franchise agreements and publishes case studies on cities that have included clean energy targets in their franchise agreements. NREL also publishes a national assessment of the potential impact of widespread adoption of renewable energy targets on national use. While the following list is far from exhaustive, the following list covers several instruments that allow cities to use funds that have been generated (or could use) to help residents and businesses reduce energy costs and enjoy local economic benefits of clean energy: “As a city, we should think about what a 21st century franchise contract is. , compared to an agreement written 50 years ago. “,” Siegele said.
Some enterprising U.S. cities have found an unexpected source of revenue to support local renewable energy and the fight against climate change. Buried in the electricity and gas bills of most customers, an opaque position is often overlooked: it is called “franchise fees.” The 50-year-old franchise agreement, signed in 1970, expires on January 17, 2021. Cities have many purchasing opportunities to meet their energy goals. An emerging trend is for municipalities to incorporate energy goals into their franchise agreements with an electricity service provider or use these agreements as an entry point to negotiate other clean energy agreements with the energy provider. Among cities that renegotiate their franchise agreements, the trend is to sign short-term contracts. “It is unusual and unexpected for a company looking to extend its additional franchise relationship so as not to comply with the terms of the current franchise agreement,” Caldwell said. October 11- For the first time in nearly half a century, the City of San Diego is preparing to renegotiate a franchise agreement that gives San Diego Gas and Electric the exclusive right to use the city`s public law for transportation and distribution and to install wires, pylons, power lines and underground power lines.
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