Cities May Collect Utility User Fees

The city of Coeur d’Alene made huge strides in protecting the $1.1 million in franchise fees it gets from utilities each year thanks to the Idaho House of Representatives.

By a vote of 68-0 Thursday, the House passed a bill that allows cities to collect user fees from companies selling natural gas or electricity in the city. The measure now moves to the Senate.

Deregulation allows several companies to sell natural gas and use Washington Water Power’s lines. Coeur d’Alene collects a franchise fee equal to 5 percent of WWP’s gross revenue for sales in the city.

Without this legislation, Coeur d’Alene would lose $240,000.

The bigger worry, City Finance Director John Austin said, is the expected deregulation of the electrical industry. That would deprive Coeur d’Alene of $821,000 a year unless the new legislation is implemented.

Some of the money is being used for new street construction in the city.

WWP is supporting the legislation because it means its competitors don’t have the advantage of not paying the fee, Austin said.

, DataTimes