City raises RMP fee by 1 percent

Rocky Mountain Power will be able to continue its utility work with the residents of Green River under a new contract now lasting 10 years. Rocky Mountain Power’s franchise contract of 25 years with the City of Green River recently expired, meriting a renewal.

At Tuesday’s City Council meeting, the council approved an ordinance granting a franchise agreement to Rocky Mountain Power in Green River. The agreement will allow Rocky Mountain Power to continue administering their services without having to seek approval from the city council. With their agreement of 25 years expiring, they needed a new agreement.

A couple changes were made with the contract with the city this time around. The franchise contract will now last 10 years instead of 25.

“We lessened the number of years in the contract, so we can look at it again sooner,” City Administrator Reed Clevenger said.

A major change to the contract was a raise of the city’s fee to Rocky Mountain Power from 2 percent, to 3 percent of the net income of Rocky Mountain Power’s work done within the city.

Other cities in Wyoming, like Cody, Laramie, Lander, Worland and Casper charge utility companies a fee of 4-5 percent.

“We didn’t feel we needed to go that high. If it goes from two to three, it’s a 50 percent increase; it’s actually a big increase,” Clevenger said. “Out of all the stuff they do, it will probably bring in an additional $75,000 for us in revenue.”

The revenue brought in from utility franchise contracts, such as Rocky Mountain Power’s contract is just one piece of all the revenue the city receives. Clevenger says most of the city’s revenue comes from tax revenue. Specifically, tax revenue brings in $900,000 to the city annually.

 

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