AgdaPkt 2002-07-01 - Laserfiche WebLink

Browse Search

UPDATE ON PROPOSED NEW ELECTRIC AND GAS FRANCHISES BY PG&E Cities Urged to Delay Action While Task Force Develops Recommendations In recent weeks city managers in the PG&E lng plan, but there appear to be viable franchise service tarritory have been contacted by company timetable concerns that have been identified by the representatives to discuss the possible adoption of new company if the plan is approved and takes effect electric and gas franchise agreements with PG&E January l, 2003. transmission subsidiaries. The subsidiaries were The PG&E representatives indicated the created to carry out the company's electric and gas creation of the subsidiary transmission companies and transmission businesses under the proposed PG&E new franchise agreements will likely result in increased bankruptcy reorganization plan currently under consid- franchise fee revenue for many cities, depending on eration by the bankruptcy court and PG&E's creditors, the presence of transmission facilities in each city's right-of-way, They are in the process of estimating On Wednesday, June 19, 2002, League repre- how much of an increase each city PG&E currently sentatives met with PG&E representatives to discuss serves may gain in additional franchise revenues. this proposal. League representatives included: Chris McKenzie, Executive Director; Yvonne Hunter, Legisla- League Task Force to Develop Common Strategy rive Representative; and Alisa Fong, Depu", ~aheral Counsel, ?G&E representatives included Jonn Torrens, At the request of many city managers the consultant; Richard Meiss, Attorney; and Clay Schmidt, League is organizing a PG&E Franchise Task Force Entitlement Agent. comprised of city managers, city attorneys and finance directors who are interested in formulating a common PG&E recently delivered a packet of informa- strategy on this proposal and in meeting collectively tion to city managers in general law cities containing with PG&E representatives about the issue. Addition- documents the company has drafted to obtain electric ally, the task force will be responsible for generating a and gas franchises under the Franchise Act of 1937. draft franchise ordinance for the League to distribute PG&E is approaching cities now to inform them of the to its members, and to provide guidance during this specific process and estimated timeline of obtaining evolving process. Individuals who are interested in franchises, in anticipation of having their bankruptcy serving on this task force should contact Frances reorganization plan confirmed and made effective. Medema at medemaf@cacities, org or Alisa Fong Similar packages are being delivered to managers in atfong@cacities, orgattheLeaguetoexpressyour charter cities as well which are customized reflect the interest. At least one in-person meeting will be special franchise provisions of those cities' charters, scheduled during early July, and subsequent meetings The PG&E proposed reorganization plan creates will likely occur with PG&E representatives. two new transmission subsidiaries that would require franchises. PG&E's existing franchise agreements Cities are encouraged to meet with PG&E would remain in full force and effect covering the representatives when meetings are requested, but to distribution aspects of PG&E's operations, refrain from moving forward too quickly as the task The effective d~te of the reorganization is force is being formed to provide some guidance and estimated to be January 1, 2003, providing that the plan collective benefit for all cities that are affected. is confirmed by the court. Since the process for granting a franchise can take four (4) months or longer, the company received approval from the bankruptcy judge to approach cities about the proposed new franchise agreements. The League neither supports nor opposes PG&E's bankruptcy plan, or any other compet- PAGE 6/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org