San Diego Franchise Agreement
Among the conditions of Gloria`s new tenders is the request for a cooperation agreement that will help the city achieve its climate change and environmental equity goals. The proposed franchise agreements also contain liability measures that require the franchisee to be a good partner and to protect the use of city public law. Three san Diego City Council members say they want a new power and gas franchise contract that lasts no more than five years – far shorter than a 20-year contract that was established in the previous round of tenders. Under the leadership of former Mayor Kevin Faulconer, the city has put up an invitation to the Bid, hoping to rally several energy companies to compete for the market. Working with industry advisors, Faulconer`s office attempted to reconcile a more difficult business for the city with the definition of requirements that businesses would always find attractive. The current contract between the city and San Diego Gas-Electric, which has been in existence since 1970, runs until June 1. The original pact was due to expire this month, but Gloria and SDG and E officials have drawn up an extension. «With these invitations to apply for gas and electricity services, we are ensuring that franchise agreements meet the needs of residents, have financial attention for the city, advance our climate goals and provide all our communities with equal access to environmental benefits,» said Gloria. «To obtain the exclusive right to use taxpayers` country to produce energy in San Diegans, bidders must be a good partner in our efforts to create a sustainable future for all of us.» We, Public Power San Diego, support the creation of an independent, affordable public gas and electricity supplier for our city of San Diego. The for-profit fossil fuel group, SDG-E, which currently operates our city`s electric franchise, calculates under the highest electricity rates in the country. Let`s get this over with! It is also essential for any extension to ensure strong protection for workers and good union jobs, and that all franchise agreements or alternatives that advance do so as well. Although SDG-E`s proposal accepted a number of conditions from the City – in particular the acceptance of a 20-year contract and the payment of a pre-payment of $70 million for the electricity franchise and $10 million for the gas franchise – the distribution company`s offer included a number of proposed amendments to the agreement.
This led Gloria, in agreement with the city`s district attorney`s office, to maintain SDG-E`s offer as «non-reactive» and to return the trial to the top spot. The San Diego franchise fee differential calls for an additional return deductible, which is levied by the city of San Diego.