Utility Franchise Matters

Electric Franchise Review

ERG performed an analysis of the potential impacts upon Toledo ratepayers of the proposed merger of the Toledo Edison Company (“TECO”) and Cleveland Electric Illuminating Company creating Centerior Energy. An independent econometric projection of Centerior’s future rates and comparison to projected TECO stand-alone rates was developed in support of establishing the City’s position with respect to the pending merger. In addition, a preliminary analysis of merger related transfers of TECO transmission assets along with associated transmission control issues and potential supply impacts upon City electric consumers was performed. Confidential briefings of City management were accomplished relative to the results of the analyses.

Retail Electric and Gas Franchise Renewal Negotiations

ERG was retained to provide consulting assistance to the Town of Erie, Colorado and its legal counsel concerning negotiation of a new twenty year term electric and gas retail franchise agreement with Xcel Energy and a new twenty year term retail electric franchise agreement with United Power Corporation. In this regard, members of the Firm analyzed the existing franchise agreements, provided comments and suggested language changes, and developed newly proposed franchise provisions. ERG participated in negotiating new franchise arrangements with both Xcel Energy and United Power.

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