Niceville’s City Council signed off on a new 30-year electric franchise agreement with Florida Power & Light (FPL).
The agreement replaces a 1996 franchise originally signed with Gulf Power. That 30-year deal expires in May.
City Manager David Deitch told the council that staff and the city attorney spent months negotiating the new contract with FPL.
Deitch said he and his team at the city “have worked diligently to create a mutually beneficial franchise agreement, both for FPL and, more importantly, for the residents of Niceville.”
The new ordinance grants FPL a nonexclusive franchise to “construct, operate and maintain” its electric facilities “in, under, upon, along, over and across” current and future roads, alleys, bridges and other public places within the city. In practice, that gives FPL the long-term legal right it needs to keep poles, wires and other equipment in city rights-of-way.
In return, FPL will continue paying Niceville a six percent franchise fee on most electric revenues collected inside city limits.
That six percent figure is unchanged from the 1996 agreement. The ordinance also carries forward a detailed list of exclusions from the revenue base, such as street lighting, sales for resale to other utilities, and late payment charges.
A “most favored nation” clause gives Niceville some upside if FPL cuts a richer deal elsewhere. If the utility signs a franchise in another Okaloosa County city of equal or smaller customer size with a fee above 6 percent, Niceville’s rate is automatically adjusted up to match.
Beyond money, the agreement updates indemnification, insurance and compliance language to better protect the city, and it reaffirms Niceville’s authority to regulate how FPL uses public rights-of-way. It also explicitly recognizes the city’s right to develop and use renewable energy at municipal facilities in the future.
All rates FPL charges customers will still be set by state regulators, not by the franchise.
City staff framed the deal as a way to secure “long-term stability, regulatory clarity, and continuity of service” for residents and businesses. The council approved the ordinance on a unanimous vote.
Pro Communi Bono
St. Francis De Sales, Ora Pro Nobis!
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