Mount Clemens holds first reading of Consumers Energy gas franchise ordinance

The Mount Clemens City Commission on April 6 introduced and held the first reading of a proposed Consumers Energy gas franchise ordinance that, if adopted, would authorize a revocable, nonexclusive franchise allowing Consumers Energy to provide natural gas services in the city for a period not to exceed 30 years. The chair directed the city clerk to publish the proposed ordinance for public inspection for four weeks and set a second reading and possible adoption for May 18, 2015.

Why it matters: The franchise would govern how a major utility provides gas service within city limits and sets the terms under which the company may operate locally. The city attorney reviewed the proposed language and told the commission it complied with the city charter and the municipality's public-utility ordinance.

Details: A commissioner raised concerns about the 30-year term and asked why the proposed document included that length; a city staff member pointed to the city charter provision that "No franchise shall be granted for a longer period than 30 years" and confirmed prior franchises had also been for 30 years. The chair asked whether the contract could be terminated on 90 days' written notice; a staff speaker confirmed that a 90-day written notice option exists in the draft.

Public presence and next steps: A Consumers Energy representative, identified in the meeting as Ursula Warren, was present for the discussion. The commission's action at this meeting was limited to the introduction and first reading and to scheduling publication and the second reading; no ordinance adoption occurred. The second reading and final vote are scheduled for May 18, 2015, and the clerk will make the proposed ordinance available for public inspection during the required four-week period.