Title
An ordinance, on second reading, granting to Farmers Electric Cooperative, Inc., its successors and assigns, the nonexclusive right to use and occupy rights-of-way within the City of Mesquite for the construction and operation of an electric transmission and distribution system, prescribing conditions governing the use of the public rights-of-way, providing for compensation; therefore, providing for an effective date and a term of said franchise, providing for written acceptance of this franchise and finding that the meeting at which this ordinance is passed is open to the public.
Body
Through the course of obtaining electrical service to the new Copeland Park, City staff discovered that Farmers Electric Cooperative, Inc. has electric distribution facilities dually certified and collocated with Oncor Electric Delivery facilities within the City's rights-of-way.
Farmers is an electric cooperative corporation that was formed over 80 years ago, and its service area in Mesquite (see attached Distribution Line Location Map) was established prior to the City's annexing this area in 1974. While City staff was aware that Farmers held a couple of easements granted by the City in 1985, staff was unaware that these facilities specifically occupied City rights-of-way. Over the years, much of the Farmers service area was transferred to Oncor, and currently, only 28 Farmers customer accounts remain in Mesquite.
Unlike Oncor, which is a private, investor-owned utility, Farmers is a non-profit, public retail electric utility operating a retail electric distribution system within a service area defined by a Certificate of Convenience and Necessity (CCN) issued by the Texas Public Utility Commission (PUC). Under State law, Farmers has the right to provide service within their CCN, and a municipality may not directly or indirectly regulate the rates, operations and services of an electric cooperative, except "to the extent necessary to protect the public health, safety an...
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