Full Answer
Why use franchise fee revenue?
How many states allow franchise fees?
Why do cities not charge fees?
Does Ann Arbor have a franchise agreement?
Is Minneapolis a franchise?
How to expand access to money upfront for energy improvements?
Do cities in the teal blue have franchise fees?
See 4 more
About this website
Who regulates utility companies in New York State?
The Public Service CommissionThe Public Service Commission regulates the state's electric, gas, steam, telecommunications, and water utilities. The Commission also oversees the cable industry. The Commission is charged by law with the responsibility for setting rates and ensuring that adequate service is provided by New York's utilities.
Are utilities regulated in New York?
Our rates and terms of service are governed by the New York State Public Service Commission, which regulates the state's electric, gas, and steam utilities.
How does New York generate most electricity?
NYC's electricity today is mostly generated by burning fossil fuels, representing about a quarter of the city's total greenhouse gas emissions (GHGs).
Are utilities profitable?
They don't profit. But with capital expenses—that is, physical infrastructure, like poles and wires—utilities can collect the money they invested plus an additional percentage they keep as profit.
How many utility companies are there in New York?
New York State has seven major investor-owned utilities and small municipal and rural electric cooperatives to supply electricity and natural gas.
Who owns NY Power Authority?
State of New YorkNYPA provides some of the lowest-cost electricity in the nation, operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines....New York Power AuthorityTypeNew York state authorityProductsElectricity generationOwnerState of New YorkWebsitewww.nypa.gov5 more rows
What is New York's main source of energy?
About 65 percent of heating and a critical percentage of cooking in New York use natural gas fuels. Gas also fuels more than 98 percent of in-city electricity generation by power plants.
What city uses the most electricity?
Top 25 citiesRankTop 25 City NameEquivalent Homes' Electricity Use for 1 Year1Los Angeles50,2002Washington DC95,3003Atlanta55,3004San Francisco39,90021 more rows
How much of NY electricity is renewable?
75% of this electricity comes from renewable resources while the other 25% comes from zero emission resources that include nuclear generation.
How do most utilities make money?
Regulated utilities are permitted to earn a certain rate of return on their capital investment as defined in their revenue requirement. However, the utility ultimately makes money by charging consumers for their electricity.
Why are utilities a monopoly?
Public utilities were historically regarded as natural monopolies because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain.
How does an investor owned utility make money?
That's right, utilities do not earn profits on the products they sell—gas, water, and power are provided “at cost” to consumers—but rather from the investment in the assets (the pipes, substations, transmission lines, etc.) that are used to provide the service.
Is Con Edison a regulated utility?
Con Edison's principal business segments are Consolidated Edison Company of New York, a regulated electric, gas, and steam utility; Orange & Rockland Utilities (O&R), a regulated electric and gas utility; Con Edison Clean Energy Businesses, Inc., and Con Edison Transmission, Inc.
Is Con Ed a government agency?
Consolidated Edison, Inc. (Con Ed) is one of the largest publicly owned utility holding companies in the United States. The company boasted $16 billion in assets and more than $8 billion in revenues in 2000.
How To Calculate Franchise Fee: Everything You Need To Know - UpCounsel
How to calculate a franchise fee isn't a question that has a straightforward answer. Business and economics experts refer to this process as both an art and a science because of the diverse, complex factors that play a role in the fee determination.
American Public Works Association Utility and Public Right-of ... - APWA
standard ROW permit process. Under this argument, the issue of franchise fees and other types of control may rest more with the property owners than with the local municipality.
25-30.050 : Municipal or County Franchise Fee - Florida Administrative ...
Latest version of the final adopted rule presented in Florida Administrative Code (FAC):
Why are utilities wary of rooftop solar?
Similar to the industry's historical aversion to energy efficiency, utilities in many regions of the country are wary of rooftop solar, largely because it makes operating the grid more difficult while spreading the costs of doing so over a smaller customer base. It’s a problem no utility wants to have.
How much does it cost to meet the superpeaks?
The cost of meeting the superpeaks alone reaches about $450 million per year , according to Zibelman. Instead of building power plants to help meet these superpeaks, Zibelman wants New York to better manage the existing grid through the flexibility in demand and the wave of distributed resources that are already coming onto the grid.
When will Oregon decarbonize its power grid?
Oregon leaps past California and Washington as legislators pass bill to decarbonize power grid by 2040. Lawmakers passed a bill that could lead to the development of 2,765 MW of new renewables by 2030 by Portland General Electric and PacifiCorp, according to one analysis. By Kavya Balaraman • June 30, 2021.
Is New York's electricity demand growing?
Like many other U.S. regions, New York's average electricity demand has been growing at a slower rate than its peak demand. The growing gap between average demand and peak demand has created a utility system that’s been designed to meet “superpeaks,” which occur for only a few hours every year.
Why use franchise fee revenue?
In recent years, cities have considered using utility franchise fee revenue for activities to reduce energy use and promote renewable energy.
How many states allow franchise fees?
The map shows states where cities can have franchise fees and whether they have the authority to set the fee.The updated map below shows data for all states, concluding that franchise fees are allowed in 45 states. Franchise fees can be set at the city level in 40 states, at the state level in 5 states, and are prohibited in 5 states.
Why do cities not charge fees?
Cities that do not charge a fee because: The utility is publicly owned; The municipality opts not to charge a fee; or. The municipality receives free utilities in lieu of a fee. Cities that do charge a fee, structured as: An annual, fixed fee; A one-time application fee; or. An annual fee based on gross sales.
Does Ann Arbor have a franchise agreement?
The 2009 study also noted that only one city (of those studied)––Ann Arbor, Mich.––had a franchise agreement including provisions for renewable energy. In particular, the franchise required the utility to provide at least 10% renewable energy by the fifth and final year of the contract. ILSR was unable to find an example franchise agreement from any other city with a similar provision. Unfortunately, fees charged by monopoly utilities on third parties and changes to Michigan state law invalidated Ann Arbor’s franchise agreement, and no fees have been collected in several years.
Is Minneapolis a franchise?
Minneapolis, Minn., stands out as the most innovative user of the franchise fee in recent years. As its existing franchise contract with private, monopoly electric and gas companies Xcel Energy and Centerpoint Energy wound down in 2013, the city began an exploration of its legal options to accomplish Climate Action and local energy goals. In an “Energy Pathways” study ( summary slideshow ), the city explored the leverage of forming its own, city-owned utility (testing the sway of the “birch rod,” as President Franklin D. Roosevelt famously called the flexing of local authority in his 1932 “Portland Speech”).
How to expand access to money upfront for energy improvements?
Expand access to money upfront for energy improvements by reducing perceived lender risk with inclusive financing mechanisms, such as a loan-loss reserve or loan interest-rate buydown.
Do cities in the teal blue have franchise fees?
States in the teal blue do not allow cities to manage their own franchise agreements, and the fee is set at the state level. Lastly, states in the dark orange do not allow franchise fees but do allow cities to manage their own franchise agreements.
REV - Demonstration Projects
New York State is seeking demonstration projects to show how new products and services can capture latent value on the grid, and how new business models can monetize and distribute that value across third parties, utilities and customers.
New Project Idea
New York State is seeking demonstration projects to show how new products and services can capture latent value on the grid, and how new business models can monetize and distribute that value across third parties, utilities and customers.
What are the regulatory changes under the REV initiative?
Regulatory changes under the REV initiative are promoting more efficient use of energy, deeper penetration of renewable energy resources such as wind and solar, wider deployment of “distributed” energy resources, such as micro grids, roof-top solar and other on-site power supplies, and storage. It is also promoting markets to achieve greater use of advanced energy management products to enhance demand elasticity and efficiencies. These changes, in turn, will empower customers by allowing them more choice in how they manage and consume electric energy.
Why is New York State important?
New York State is leading the way to ensure these trends benefit consumers, whose lives are so directly affected by how they procure energy. The availability of reliable , resilient, and affordable electric service is critical to the welfare of citizenry and is central to New York’s economy.
What is the role of the PSC in New York?
The Public Service Commission (PSC) is playing an important role in crafting the significant regulatory changes needed to make the Governor’s agenda a reality.
Is the electric industry in transition?
The electric industry is in transition. The 20th-century power system is unsustainable, both environmentally and economically. Rising energy bills, more frequent extreme weather, and the environmental imperative to reduce carbon emissions require us to reinvent how we produce, deliver, and consume energy.
Why are city services limited?
Because of territorial lines, even though a city can sign franchises with various companies and purchase energy from various sources, services are limited by location. Likewise, regular customers are limited to those services available in their coverage area.
When does the OG&E contract end?
OG&E’s agreement with the city ends December 2018, and the company is asking for the city council to put a renewal vote on an upcoming ballot.
Do public utilities have to have a franchise?
This type of agreement is common, as a public utility must have a franchise before it can use streets or public grounds to operate, Walker said.
Do franchise agreements have to go to a vote?
Under the Oklahoma Constitution, franchise agreements also are required to go to a vote of the people , Walker said. This can happen if a city council puts the agreement on a ballot or calls a special election, or, Walker said, there is a citizen-driven petition to put it on a ballot.
Do cities charge franchise fees?
Cities charge utilities a franchise fee as a type of rent, since the companies use public streets, said Shawn O’Leary, Norman public works director.
Why use franchise fee revenue?
In recent years, cities have considered using utility franchise fee revenue for activities to reduce energy use and promote renewable energy.
How many states allow franchise fees?
The map shows states where cities can have franchise fees and whether they have the authority to set the fee.The updated map below shows data for all states, concluding that franchise fees are allowed in 45 states. Franchise fees can be set at the city level in 40 states, at the state level in 5 states, and are prohibited in 5 states.
Why do cities not charge fees?
Cities that do not charge a fee because: The utility is publicly owned; The municipality opts not to charge a fee; or. The municipality receives free utilities in lieu of a fee. Cities that do charge a fee, structured as: An annual, fixed fee; A one-time application fee; or. An annual fee based on gross sales.
Does Ann Arbor have a franchise agreement?
The 2009 study also noted that only one city (of those studied)––Ann Arbor, Mich.––had a franchise agreement including provisions for renewable energy. In particular, the franchise required the utility to provide at least 10% renewable energy by the fifth and final year of the contract. ILSR was unable to find an example franchise agreement from any other city with a similar provision. Unfortunately, fees charged by monopoly utilities on third parties and changes to Michigan state law invalidated Ann Arbor’s franchise agreement, and no fees have been collected in several years.
Is Minneapolis a franchise?
Minneapolis, Minn., stands out as the most innovative user of the franchise fee in recent years. As its existing franchise contract with private, monopoly electric and gas companies Xcel Energy and Centerpoint Energy wound down in 2013, the city began an exploration of its legal options to accomplish Climate Action and local energy goals. In an “Energy Pathways” study ( summary slideshow ), the city explored the leverage of forming its own, city-owned utility (testing the sway of the “birch rod,” as President Franklin D. Roosevelt famously called the flexing of local authority in his 1932 “Portland Speech”).
How to expand access to money upfront for energy improvements?
Expand access to money upfront for energy improvements by reducing perceived lender risk with inclusive financing mechanisms, such as a loan-loss reserve or loan interest-rate buydown.
Do cities in the teal blue have franchise fees?
States in the teal blue do not allow cities to manage their own franchise agreements, and the fee is set at the state level. Lastly, states in the dark orange do not allow franchise fees but do allow cities to manage their own franchise agreements.