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Produced & Maintained by Idaho Mountain Express, Box 1013, Ketchum, ID 83340-1013 
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Copyright © 2001 Express Publishing Inc.
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For the week of December 12 - 18, 2001

  News

Proposed franchise agreement outlined

Ketchum customers may see 
1 percent power rate hike


By GREG STAHL
Express Staff Writer

Ketchum electricity customers could soon experience a 1 percent increase in their power bills, and, using moneys collected through the rate hike, the city of Ketchum could begin amassing funds to bury its power lines.

Mayor David Hutchinson released Dec. 5 a draft franchise agreement between Idaho Power Co. and the city, which would establish a framework to facilitate burying power lines that string Ketchum’s streets. Both parties appear amenable to the draft agreement.

The Ketchum City Council unanimously voted to introduce the draft ordinance, triggering a 30-day minimum time frame under which the city and power provider can hammer out details.

If adopted as proposed, the agreement would allow the city to bid for contractors and require that Idaho Power perform power line burying work at actual, not-for-profit costs.

"We have no right to make them pay for everything, but we do have the right to get a fair price," Hutchinson said. "It should significantly reduce the cost of burying."

All overhead-to-underground relocation and improvements "shall be the responsibility of the city, and the city shall be charged for the actual costs for such relocation and improvements," the draft agreement states. In determining costs, the city would receive credit for Idaho Power’s cost of relocating the facilities if they had been improved above ground.

The city would have the right to obtain bids for all associated work, except for electrical and engineering work, "which shall be the sole responsibility of Idaho Power or its contractors," the agreement states.

Hutchinson said Idaho Power would not consider the agreement unless electrical and engineering work remained exclusively under its control.

Adoption of the agreement would end a five year period in which no franchise agreement has been in place. Under Ketchum’s previous, 50-year franchise agreement, which expired Sept. 1, 1997, the city did not charge a franchise fee. State law, however, allows cities to charge a 1 percent fee, but voters can approve a fee up to 3 percent.

A franchise agreement enables a city to charge citizens a franchise fee, and gives a utility the authority to work on city properties without asking permission every time a transformer or wire needs replacing.

The agreement would also require that Idaho Power develop within six months of the agreement’s adoption a conceptual master plan of anticipated improvements within the city.

The master plan would be approved and adopted by the city council and be reviewed and updated annually.

 


The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.