Frisco City Council approved increasing CoServ’s utility franchise fee rate from 3 percent to 4 percent during the July 1 meeting.
The rate increase will help pay for a $24-million power lines route along Main Street in West Frisco.
CoServ is a not-for-profit electric distribution cooperative.
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 3 percent franchise fee rate, Frisco received about $3 million per year from CoServ, Ben Brezina, assistant to the city manager, said in a previous story. With the increased rate, the city would receive about $4 million per year.
Utility customers in Frisco will see an increase on their bills of about $1.50 per month, CoServ spokesperson Oscar Martinez said.
This fee increase would be the first since 1977. Some other neighboring cities already have franchise fee rates set at 4 percent, according to the city of Frisco.
The power lines route along Main Street is a hybrid overhead/underground route that stretches from east of Legacy Drive to west of FM 423.