City, LCEC franchise negotiations continue
With its 30-year franchise agreement with LCEC now expired, the city of Cape Coral will request an extention of its filing with the Public Service Commission against the electric co-operative so talks can continue.
The city intends in a few days to file for another abatement extension through the end of October, according to city spokesperson Connie Barron.
Meanwhile, negotiations to hammer out a new franchise agreement continue.
“The last time there were any talks was last Monday (Sept. 26) in a phone call between (City Manager) John Szerlag and (LCEC CEO) Dennie Hamilton,” said LCEC spokesperson Karen Ryan. “I think everyone is just waiting to see if the city asks for another extension so negotiations can continue.”
Ryan added that Hamilton and city negotiator Stuart Diamond have met several times and are beginning to make progress by laying a foundation for meaningful negotiations to begin.
While exchanges before the PSC filing in March were tense, negotiations since the first abatement have been cordial between the two parties, Ryan said.
“So far no definitive terms have been agreed upon,” said Ryan. “We remain optimistic that an agreement can be possible. A lot of time and money has been spent on this issue and we are sure that both sides would like to get back to the many responsibilities of serving their constituents/customers.”
Diamond could not be reached for comment.
The city has filed for several one-month extensions, putting its request for an investigation into LCEC’s rate structure on hold so that franchise agreement negotiations could continue with the electric service provider.
LCEC was not willing to negotiate with the city while the PSC was considering the complaint.
LCEC’s current franchise agreement expired on Oct. 1, but power will continue to flow unimpeded under the terms of the agreement.
The newly expired agreement provides a purchase clause in addition to the option to enter into a new franchise.
Prior to hiring Diamond, the city had been pursuing a “dual track” that included a study of purchasing LCEC’s assets in the city.