Georgia committee debates shifting a portion of municipal utility franchise fees to counties

Representative Rick Scoggins presented HB 13‑84 (LC560637S), telling the House Government Affairs Committee the bill would change how municipal utility franchise fees are divided so that the 1% currently showing on rural customers’ bills would instead be retained by the county where those customers live.

"I live 17 miles from the city. I get no city water. I don't have street lights. They don't pick up my trash...but yet my 1% of my franchise fee goes to the cities in my county," Scoggins said, arguing counties and unincorporated residents receive no local benefit from that 1% and should receive the corresponding revenue.

Advocates for counties and for county officials framed the measure as aligning revenue with responsibility. Keenan Rogers of the Association County Commissioners of Georgia (ACCG) said local leaders want revenue that matches the services and infrastructure their constituents use, especially as large industrial and data‑center customers expand service outside city limits.

“No local dollars with no local benefit,” Rogers told the committee, urging lawmakers to consider mechanisms that prevent county residents’ bills from financing services inside municipalities where those residents get no service.

The Georgia Municipal Association (GMA) and municipal speakers pushed back. Jim Thornton of GMA called municipal franchise fees "basically rent for the use of city‑owned streets and right of way," explaining cities negotiate those franchise agreements and are compensated for the cost and liability of managing public right‑of‑way. "This is significant revenue — about $257 million in our last statewide estimate — that compensates cities for the use of their right of way," Thornton said.

GMA warned the bill would redirect locally negotiated revenue and that the practical effect would be large and complicated because utilities and the Public Service Commission have varying recovery practices. Thornton said some utilities socialize the franchise fee across all customers while others apply it only to municipal ratepayers, producing different outcomes across the state.

Committee members pressed authors and witnesses on the mechanics: how much money would move, how the split works for different utilities (Georgia Power versus EMCs), and whether a mandated transfer would create unintended holes in city budgets. Representative Oliver asked for a dollar estimate; GMA supplied a statewide figure of roughly $257 million (2024 data) but said the split between Georgia Power and EMC customers would need more analysis.

By the close of the afternoon the committee did not vote on HB 13‑84. Chairman Anderson said the committee would continue to hear the bill later in the week to allow more time to work through technical and fiscal questions.

What’s next: The committee took testimony and held the item as a hearing; additional meetings were scheduled to refine language and consider amendments before any possible committee vote.