House Study Committee on Electric Franchise Fees for Unincorporated Areas; create
Summary
House Resolution 755 creates the House Study Committee on Electric Franchise Fees for Unincorporated Areas. The resolution is framed around the growth of large-load electricity customers, the use of county and municipal rights-of-way by electric utilities, and the way electric franchise fees are currently structured and passed through to customers. It states that residents in unincorporated areas have long paid municipal franchise fees through their electric rates even when they do not live in the municipalities receiving those fees, and it raises the question of whether counties and unincorporated-area residents should receive a comparable economic benefit from utility use of county rights-of-way.
The committee is directed to study the conditions, needs, issues, and problems related to electric franchise fees in unincorporated areas and to recommend any legislation or other action it deems appropriate. The committee will include seven House members, two county officials, and two municipal officials appointed by the Speaker, and it is authorized to meet as needed, receive legislative allowances, and use House-appropriated funds. The committee is scheduled to be abolished on December 1, 2025, unless it completes its work and reports earlier.
Impact
This resolution does not directly amend the Georgia Code or change existing franchise-fee law. Instead, it establishes a temporary legislative study committee to examine whether current electric franchise fee practices, especially in unincorporated areas and in relation to large-load customers, should be revised. Any legal or regulatory impact would come later through proposed legislation recommended by the committee, potentially affecting utility tariffs, county revenue arrangements, municipal franchise fee structures, and the allocation of costs among incorporated and unincorporated customers.
Sentiment
The overall sentiment reflected in the resolution is supportive of reexamining the current system. The bill’s findings suggest concern that unincorporated-area residents and counties may be bearing costs without receiving corresponding benefits, and that the growth of large-load electricity customers makes the issue more urgent. Because there are no recorded votes or committee transcripts provided, there is no documented opposition or debate in the available record, but the resolution itself signals a policy interest in addressing perceived inequities in how electric franchise fees are assessed and distributed.
Contention
The main points of contention implied by the resolution are who should bear electric franchise fee costs and who should benefit from them. Counties and residents of unincorporated areas may argue that utilities’ use of county rights-of-way has economic value that should be compensated, while municipalities may resist changes that could reduce franchise-fee revenue they currently receive. Large-load electricity customers are also singled out as a group that may need to be assessed franchise fees or other tariffs, which could raise concerns from industrial or high-demand users about added operating costs. The study committee is designed to gather input from House members, county officials, and municipal officials, reflecting the competing local-government interests involved.