The Enid News and Eagle, Enid, OK

October 20, 2013

OG&E franchise up for renewal in Garber

By Robert Barron, Staff Writer
Enid News & Eagle

ENID, Okla. — Garber residents will go to the polls Nov. 12 to decide on renewal of the OG&E Electric Services franchise, which provides thousands of dollars to the community.

The franchise agreement gives OG&E the right to produce, transmit and distribute electricity for all purposes in Garber. It also gives OG&E the right to construct, maintain and operate the electrical system. The renewal of the contract is for the same terms as the old franchise, 25 years.

OG&E compensates the city for the right to provide electricity.

John Little, district manager for OG&E, said the franchise is a standard agreement the company does with all towns. It includes a 3 percent fee, based on gross revenue and also a free service provision, which provides free electricity to town-owned buildings and traffic lights. The fee is based on one-half of one percent of all kilowatts used by the city during the past fiscal year.

The 3 percent monthly gross revenue goes into an account for the town. Little estimated that adds up to $20,000 per year for the franchise and about a $3,000 for the services provided to the town-owned facilities in Garber.

“These provisions are the same for all franchise cities. Only the amounts will change, but the percentages will be the same,” Little said.

Garber City Council member Warren Dell said he is happy with the terms and thinks it is a good agreement. He is not aware of any opposition.

Mayor Sam Strecker also likes the agreement. He said the issue has not been made public until recent weeks.

“But I haven’t heard anyone complaining,” Strecker said.

He is pleased with OG&E service for the past 20-25 years.

OG&E is one of the oldest companies in Oklahoma, having opened its doors in 1902.