El Paso Electric, a publicly traded company, recently signed a franchise agreement with the city of El Paso, Texas. The agreement outlines the terms and conditions under which the company will provide electric services to the residents of the city.
Under the agreement, El Paso Electric will continue to maintain and operate the electric system within the city limits. The company will also be responsible for ensuring that the electric system remains safe, reliable, and efficiently operated.
The franchise agreement also includes provisions for the payment of franchise fees to the city. These fees are based on the gross revenues generated by El Paso Electric within the city limits. The fees are intended to compensate the city for the use of public spaces, streets, and other infrastructure required for the operation of the electric system.
The agreement also includes provisions for the regulation of rates charged by El Paso Electric. The company must notify the city of any changes in rates or fees, and the city has the right to contest any changes it deems unreasonable or unjust.
Overall, the franchise agreement is designed to ensure that El Paso Electric continues to provide reliable and affordable electric service to the residents of El Paso while also providing the city with fair compensation for the use of public infrastructure. The agreement is a win-win for both parties and will help to ensure that the city`s electric system remains safe, reliable, and affordable for years to come.