Contract between LCEC and Cape Coral approved

CAPE CORAL, Fla.-- LCEC will continue to provide electrical power to Cape Coral, under a new 20-year agreement. The contract was approved by Cape Coral Council members, and the mayor.

The new 20-year contract has an automatic 10-year extension, unless the city gives written warning they would like to terminate yhe agreement.

The terms of the contact are below:

1. LCEC collects and pays franchise fees to the City of Cape Coral in exchange for the right and privilege to construct, operate, and maintain electric facilities in roads, streets, alleys, bridges, easements, rights-of-way and other public places with the City of Cape Coral.
2. The franchise fee will remain 3% of electric revenues for the first five years of the agreement. The fee can increase to 4.5% in the sixth year, and a maximum of 6% in the 10th year for the remainder of the agreement. If any other municipality receives a fee greater than 6%, the City of Cape Coral has the right to increase the fee if the benefits of the agreement match. The City can reduce the fee at any time during the agreement.
3. A 20 year agreement with an automatic 10-year extension unless either party provides written notification of intent to amend or terminate the agreement.
4. LCEC will continue to offer customer with qualified renewable energy systems an opportunity to sell excess energy back to LCEC. If the City has interest in exploring opportunities to participate in renewable energy projects or new technology, LCEC will engage in dialogue with the City and other parties as appropriate to determine the feasibility of new technologies.
5. The City of Cape Coral agrees not to distribute or sell electricity to LCEC customers and will not purchase electricity from a third party UNLESS PERMITTED BY LAW (such as in the case of electric deregulation). If the laws in Florida change resulting in deregulation of the electric utility industry and distribution is no longer determined by service territory, LCEC has 90 days to evaluate and match the terms of any third party and continue selling to the City of Cape Coral.