Sheldon, Iowa — MidAmerican Energy has provided electrical service to the community of Sheldon without a franchise since 1987 and gas since 1989. At Wednesday’s City Council workshop, Mark Reinders representing MidAmerican told the council that even though they have been offering their services just with an ‘agreement’, a franchise strengthens that agreement, helps the energy company plan for the future, and can be a help in providing funds for the many services provided by the city through a franchise fee.
The fee could be set from one to five percent and could be applied to both the electricity and gas bills, or could be on either one.
Reinders provided attendees with list of 177 Iowa communities and the fees they collected through their franchises. This includes Hull who collect 5-percent on residential bills and 1.5-percent on all others. Inwood has a 5-percent fee on residential and 3-percent on all others. Rock Valley has 5-percent on both electric and gas.
If Sheldon were to collect 1-percent on both gas and electricity it is estimated the city would receive a total of $125-thousand annually. If the franchise fee was set at 5-percent it would add an estimated $625-thousand to the city coffers each year. Energy users such as schools could be exempted from the fee. Reinders said that most of the cities are now renewing their franchise agreements with the 5-percent fee.
If the City Council wishes to adopt a franchise they would have to conduct a public hearing on the matter. The topic will be discussed further at future council meetings. The next council meeting will be held Wednesday February 6th when their discussion on the budget will continue.
Reinders also announced that MidAmerican Energy will be purchasing the Thermo-Cel building located on Iselin Avenue that has been considered as dilapidated and dangerous. The utility company will then demolish the building, which is located adjacent to an electric sub-station, and probably use the land as a parking lot.
