The Public Utility Commission of Texas voted 2-1 to approve an amended stipulation agreement during its May 19 meeting that will allow the majority of a power lines route in West Frisco to be buried.
PUCT staff will draft a final order on the case, which the commission will hear and vote on during its June 9 meeting.
The approved route spans about three miles along Main Street from west of FM 423 to east of Legacy Drive. A portion of the route east and west of FM 423 will have overhead lines, which means a portion of the overhead route will be within Frisco city limits. The overhead lines will extend into Frisco to just north of the Bank of America at 425 Main St. The rest of the route in Frisco will be underground.
The city of Frisco and Brazos originally entered into a stipulation agreement in February, which included a hybrid overhead/underground route. The portion of the route that would have been overhead spanned west of FM 423. The city also agreed to contribute nearly $11 million toward the cost of the construction.
Frisco submitted an amendment to the stipulation agreement May 12 that calls for part of the route to be overhead. Frisco also agreed to pay an additional $550,300 for the route.
“I think this process has shown me and our residents that the commission’s focus is the right focus, which is the ratepayer, which is themselves, and also the reliability [of the lines].”
—Maher Maso, Frisco mayor
The PUCT raised several concerns regarding the precedent being set in this case during the May 19 meeting, but the commissioners recognized the city’s contributions to the cost of burying the lines.
“I want to commend the city in this case,” PUCT Commissioner Kenneth Anderson said. “I think they’ve made a really good faith effort. There’s no doubt about that.”
Frisco Mayor Maher Maso said he understands the precedent being set and appreciates the PUCT’s decision to approve the agreement.
“I think this process has shown me and our residents that the commission’s focus is the right focus, which is the ratepayer, which is themselves, and also the reliability [of the lines],” Maso said. “I think we came to a good place where we can now move on and get our water line and get our road expanded and get the power that a fast-growing city needs.”
The city estimates it will take about 12-15 months to design the power lines installation and road widening project. Once construction starts, it will take more than three years to complete the project.
Project cost
The cost to install the power lines is estimated to be $22.4 million. Under the amended stipulation agreement, the city will pay about $12.4 million toward the cost of the project. The PUCT has agreed to pay the remaining $10 million.
To help pay for the city’s contribution, CoServ Electric, a not-for-profit electric distribution cooperative and one of Brazos Electric’s members, has agreed to raise its utility franchise fee from 3 percent to 4 percent.
A utility franchise fee is paid by utility companies to cities for the right to build power lines and related infrastructure on a city’s right of way. With the current franchise fee rate, Frisco receives about $3 million per year from CoServ, said Ben Brezina, Frisco’s assistant to the city manager. With the increased rate, the city would receive about $4 million per year.
Utility customers in Frisco will see an increase of about $1.50 per month, CoServ spokesperson Oscar Martinez said.
