Tampa Electric Franchise Fee Recalculated; Could Bring More Money

AUBURNDALE | City commissioners this week approved correcting an error in a franchise agreement with Tampa Electric that could bring in additional revenue for the city. City Manager Bobby Green said the city renewed its 30-year franchise agreement with Tampa Electric in 1991. The agreement provided that for the use of the city's public streets for a distribution system, Tampa Electric would pay Auburndale 6 percent of the gross revenue it collected from the city's residential and commercial customers. From staff's point of view, the agreement included industrial customers in the category of commercial customers. But Tampa Electric classifies industrial customers in a separate class that was not included in the agreement, meaning those customers were not required to pay the full franchise fee, Green said. Instead, Tampa Electric charged all Auburndale customers a blended rate.