2007 News Archive
Potential utility bill changes resulting from franchise fees
3/5/2007
The City of Johns Creek has adopted a schedule of franchise fees for utility companies currently using the City's right-of-way to provide services. In adopting these fees, Johns Creek has ensured that each company has been treated consistently. These utility companies are not required to pass these fees on to their customers, but in most cases they choose to do so.
Sawnee EMC customers will soon receive notification letters of a 4 percent monthly increase (based on usage) beginning with their March bills. A franchise fee was not built into the billing structure previously.
Atlanta Gas Light customers will see a slight increase to their bills, estimated at 36 cents per year. Since the cost of franchise fees is spread over all its customers through the billing structure, customers within Johns Creek have, in effect, already been helping to cover the cost of franchise fees for other municipalities. Now a share of the fees will be returned to the City of Johns Creek.
Customers of AT&T/Bell South will see an increase to their bills based on 3 percent of usage (recurring local service costs) since franchise fees were not previously part of the billing.
Comcast customers are not expected to see any changes in their monthly bill because a franchise fee was being paid previously to Fulton County. This fee will now be paid to the City.
No change is anticipated in Georgia Power bills because the cost of such franchise fees was already embedded in the billing structure. Imposition of franchise fees allows the City of Johns Creek to now receive the fees that are paid by its residents.
Prior to incorporation, these utility companies (exceptComcast) weren't paying any franchise fees to deliver service in unincorporated Fulton County. But in some cases (Georgia Power for example) our residents were paying to help cover the costs of the franchise fees charged by municipalities across the State.
These fees – an estimated $2.0 million in 2007 and $2.7 million in 2008 – will go into the City's General Fund. The fees will help provide necessary services to the community, as well as compensating for the use of the public rights-of-way by the utility providers.
The new City of Johns Creek's financial health is partly dependant on these franchise fees and we are pleased to see these fees nowremain in, and benefit, our local community.
Review the service agreements between the City of Johns Creek and Georgia Power, ATT (Bell South), Sawnee EMC, Comcast and Atlanta Gas Light.