Senate Resolution 424 creates the Senate Study Committee on Franchise Fees to examine how electric utility franchise fees are assessed and allocated, especially in unincorporated areas of Georgia. The resolution states that growth in large-load electricity customers is affecting unincorporated communities and that residents in those areas may be paying municipal franchise fees through electric bills even though they do not live in the cities receiving the compensation. It also raises the issue that the use of county rights of way by electric utilities has economic value that may not currently be captured for counties and their residents.
The committee is directed to study the conditions, needs, issues, and problems related to franchise fees and to recommend any legislation or other action it deems appropriate. The committee will be made up of five senators appointed by the President of the Senate, may meet as needed, and will be funded from Senate appropriations. Any report or legislative recommendations must be approved by a majority of a quorum and filed with the Secretary of the Senate before the committee is abolished on December 1, 2025.
Impact
This resolution does not directly amend the Georgia Code or change franchise-fee law immediately; instead, it creates a temporary legislative study committee to gather information and propose future legislation. Its practical impact is to place the issue of electric utility franchise fees, county rights of way, and charges affecting unincorporated-area customers under formal Senate review. If the committee recommends legislation, the resolution could lead to later statutory changes affecting utilities, counties, municipalities, and large-load electricity customers.
Sentiment
The bill appears to have broad support in the Senate, passing on the consent calendar by a 52-0 vote. The resolution’s framing suggests concern about fairness for unincorporated-area residents and counties, and the lack of any recorded opposition or committee debate indicates a generally favorable and noncontroversial reception at this stage. The sentiment is best characterized as supportive of studying the issue rather than immediately changing the law.
Contention
The main policy tension underlying the resolution is between municipalities that receive franchise-fee compensation and counties or unincorporated-area residents who may believe they are subsidizing those payments without receiving corresponding local benefits. Another point of concern is how large-load electricity customers should be treated, with the resolution suggesting they may warrant special assessment through franchise fees or tariffs. No formal opposition is recorded in the available materials, but the resolution signals a potential future dispute over utility pricing, local government revenue, and the allocation of franchise-fee burdens.