Sunbury staff details updated franchise language, seeks 25-year term for Ohio Power Company

City staff reviewed proposed changes to a franchise agreement with Ohio Power Company (AEP) during the services committee meeting on May 6, saying the document clarifies the company’s obligations and offers the city more flexibility than the prior agreement.

Staff explained the draft adds explicit language that any new lines, appliances or appurtenances installed by the grantee must comply with applicable city ordinances, regulations and permits; staff said similar language was implied but not clearly stated in the expired agreement. The draft also includes a holding-harmless clause requiring the grantee to save the city harmless from liability arising from negligence or failure to conform to prudent electric utility practice. Staff added a provision allowing the city to require the grantee to meet quarterly with city officials to discuss service issues.

Staff said AEP had sought a 50-year franchise term but the city is seeking a 25-year term with an opt-out provision after five years to preserve flexibility as the electric market evolves. Staff acknowledged past service delivery issues with AEP and said the quarterly meeting requirement is intended to give the city recurring forum to address service concerns.

The franchise is on the council agenda as a second reading; staff said the city’s current franchise with AEP has expired, so the city is operating without a technically active franchise agreement at present. Staff also said the city may still execute franchise agreements with other electric providers and that the agreement is not intended to be exclusive.