3 time loser

[Jersey Boss]

OG&E franchise proposal fails for the third time.

[cinnamonjock]

What are the implications of this? The mayor said something about getting the courts involved and apparently they've been working on a "handshake agreement" this whole time.

[Dr Beard Face]

OEC! OEC! OEC! I never used their power but I did have their fiber and the cost was SO MUCH less than COX for way more speed and zero data cap, so I can only imagine their electric is way better than OG&E. My old neighbor in ?Norman had OEC electric and they were always the one house on the block with power when we all went dark.

[Rover]

OEC! OEC! OEC! I never used their power but I did have their fiber and the cost was SO MUCH less than COX for way more speed and zero data cap, so I can only imagine their electric is way better than OG&E. My old neighbor in ?Norman had OEC electric and they were always the one house on the block with power when we all went dark.

So, you are saying OEC has their own separate transmission lines in the same areas?

[FighttheGoodFight]

What are the implications of this? The mayor said something about getting the courts involved and apparently they've been working on a "handshake agreement" this whole time.

From an econ professor at OU had a good overall summary for it.

"CYNTHIA ROGERS

OU PROFESSOR OF ECONOMICS

On March 5, Norman voters get the opportunity to vote on a 25-year franchise agreement with OG&E for a second time. Unfortunately, there has been a lot of misinformation about the nature of franchise agreements. What exactly does a franchise agreement entail?

OG&E is a for-profit corporation operating as state-granted monopoly in its service areas in Oklahoma. The State requires utilities such as OG&E to obtain voter-approved franchise agreements. A franchise agreement sets out the terms which allows OG&E the right and privilege to generate, distribute, and profit from electric service in a municipality.

Franchise agreements are not one-size fits all. Many electric utility companies have different agreements for different municipalities in their service areas. Oklahoma statutes specifically allow municipalities to negotiate terms that are put to a public vote.

The only common feature of franchise agreements is right of way access, which allows the utility to access and maintain infrastructure without obtaining permits. Right-ofway access can be granted without a long-term agreement as is done in hundreds of communities across America.

Norman allows OG&E right of way access even though the last OG&E franchise agreement expired in December of 2018. According to case law mentioned by City Attorney Walker, the previous agreement continues as an implied contract unless either party decides to withdraw.

OG&E could decide to stop selling electricity to Norman customers, which would require them to remove or sell their equipment from City right of ways.

Other cities in Oklahoma, including Edmond and Stillwater have cityowned electric utilities.

A second common (but not universal) feature of a franchise agreement is the franchise fee, which is a percentage of gross revenues (your electric bill) that OG&E collects and remits to the city. It is a city tax added to your electric bill in which OG&E agrees to serve as the tax collector. The tax goes into the city’s general revenue fund. Some cities do not collect a franchise fee and others collect fees as high as 6%.

Norman’s expired OG&E franchise agreement imposes a 3% franchise fee and allows for an automatic increase if any municipality in Oklahoma increases their franchise fee. The fee functions as a tax which impacts energy costs and funds local government services. Broken Arrow residents approved a franchise agreement with the Public Service Company of Oklahoma that has a 2% franchise fee and a 1% fee for economic development.

A third common feature of franchise agreements is a rebate of energy costs to host municipalities. This can range from a set dollar amount, a percentage of kilowatt hours (KWH) used for municipal purposes, or a percentage of overall KWH used by municipal customers. Norman’s expired OG&E franchise agreement set the rebate at .5% of KWH used by Norman customers. This covers part of Norman’s municipal energy use for streetlights.

Franchise agreements can also include other requirements. In June of 2022, voters in the City of Enid approved a 25-year franchise agreement which included five years of annual $100,000 grants for economic development purposes and upgrades of certain streetlights in the city.

Franchise agreements can also include opt out or termination clauses. In 2001, voters in the City of Warr Acres approved an OG&E franchise agreement with an option to terminate the agreement by resolution at the end of the fifth year from the date of acceptance.

The franchise agreement is not just about access to easements as OG&E has claimed. It is certainly not about keeping the line maintenance employees working either! A franchise agreement sets out conditions by which OG&E gets the right and privilege to profit from selling electricity in Norman. A franchise agreement is the only real tool that customers have regarding the quality of service and infrastructure investments in our community.

OG&E spent a lot of money via an initiative petition process to get its boiler-plate franchise agreement back on the ballot. It is the same agreement that voters rejected in January 2022. Voting NO on March 5 is a vote to bring OG&E to the negotiating table.

Norman voters can demand opt out clauses to avoid underinvestment, grants for economic development, increased underground lines, and increased use of renewable energy. These are not fantasies. Other communities negotiate agreements to fit their priorities. Norman can too.

Please mark your calendars and vote March 5."

[Jersey Boss]

So, you are saying OEC has their own separate transmission lines in the same areas?

I don't know if it is relevant but when AT&T was broken up several years ago, the courts ruled that AT&T had to let competing long distance companies use their lines. This could very well be the case here.

[cinnamonjock]

From an econ professor at OU had a good overall summary for it.

Thanks for this and I wish I would have read it before yesterday. Seems like the Norman mayor has zero interest in negotiating with OG&E, but, from the sound of this, he will now be compelled to do so if he wants the franchise agreement to pass.

[jedicurt]

and this is why i keep voting no... OG&E has been awful service in Norman for far too long. heck, i am a norman resident who doesn't even have OG&E, i am on OEC for power, but i'm tired of most of main street being out of power multiple times every spring and summer, for not real reason. They are awful and need to step it up. it's time to renegotiate

[Rover]

I don't know if it is relevant but when AT&T was broken up several years ago, the courts ruled that AT&T had to let competing long distance companies use their lines. This could very well be the case here.

If power was out for the whole street except for one with a different carrier it would only be possible if they were delivering on a separate system. That is what was implied. Shared lines would be out for everyone or no one.

[Dr Beard Face]

So, you are saying OEC has their own separate transmission lines in the same areas?

no clue on specifics. But when I lived in Eagle Cliff in Norman, it happened often. We were also pretty close to the line for Norman and Noble, so it may have something to do with that.

[sooner333]

I think in some of the outskirts of Norman, it is both OEC and OGE territory. I think I read that in some of the newer developments both companies would run their lines to the area be able to provide service and essentially you get whatever the home builder signed up with. Where I live it is mostly OEC, but a few houses have OGE. I believe we have easements for both on our property.