51-1 Short title.

This chapter shall be known and may be cited as the “City of Pontiac Electric and Gas Supply Franchise Ordinance.”

(Ord. No. 2108, § 1.1, 6-15-00)

51-2 Purpose and findings.

(a)    Pursuant to Section 29 of Article 7 of the Michigan Constitution of 1963, and the City Charter, use of the highways, streets, alleys and other public places for operation of a public utility requires the consent of the city and the transaction of local business in the city by a public utility requires that a franchise first be obtained. This chapter is adopted for the purpose of confirming and providing the process, terms and conditions for suppliers of electricity and natural gas to obtain the required consents and franchises and to fully exercise the city’s constitutional authority which includes the reasonable control of its highways, streets, alleys and public places.

(b)    As a result of regulatory changes that have or may occur, and interpretations of existing laws, at the state and federal levels, specifically including the Michigan Public Service Commission (Deregulation), the persons that may be authorized to supply electricity and natural gas to customers in the city are no longer limited to the public utility that owns and operates the facilities used to deliver electricity and natural gas to customers. This chapter is adopted in recognition of the deregulation which has and may continue to occur, with the intent and purpose of confirming that all persons supplying electricity or natural gas to customers in the city are required to have a franchise as provided in this chapter, regardless of whether it is required as a condition of state or federal regulatory permits, approvals or certificates.

(c)    The city will incur costs and expenses in reviewing and acting on franchise requests, and upon granting a franchise, monitoring and enforcing its terms and conditions. Such costs and expenses should be paid by franchise applicants and holders as provided in this chapter.

(Ord. No. 2108, § 1.2, 6-15-00)

51-3 Definitions.

When used in this chapter, the following words, terms and phrases shall have the meanings indicated.

City means the City of Pontiac.

Clerk means the city clerk.

Customer means a residential, commercial or industrial end-user of electricity or natural gas in the city.

Disruption means a physical change, modification, alteration, disturbance, injury and/or damage to or in a right-of-way, including but not limited to, construction, installation, location, maintenance, modification, alteration, replacement or repair of facilities, and the removal or alteration of a right-of-way surface grade or material, tree, sign, marker, hydrant or other material or object.

Facility or facilities means any overhead or underground cable, wire line, main, pipe, pole, building, structure, equipment and all other manmade or placed materials or objects or combinations thereof, for the transmission or distribution of electricity or natural gas to customers.

Franchise means a nonexclusive limited authorization to transact a local business and the right to incidental use of right-of-way under this chapter.

Grantee means the holder of a valid and effective franchise granted by the city.

MPSC means the Michigan Public Service Commission.

Person means a natural person, company, corporation, partnership, joint venture, voluntary association, organization or other form of legal entity.

Right-of-way means any and all public rights-of-way, streets, highways, roads, sidewalks, alleys, thoroughfares, public easements and public places located within the city.

Supplier means a person that supplies electricity (electric generation) or natural gas to customers in the city through facilities in the city in which it has no ownership, operation, leasehold, repair or maintenance rights or responsibilities.

Utility means a person that owns, operates, and maintains facilities used to provide electricity or natural gas to customers in the city.

(Ord. No. 2108, § 1.3, 6-15-00)

Cross referenceDefinitions generally, § 1-2.

51-4 Franchise requirement.

Being a supplier of electricity or natural gas to customers in the city is the transaction of local business of a public utility, which shall not be done without a franchise.

(Ord. No. 2108, § 1.4, 6-15-00)

51-5 Right-of-way limitations.

A franchise granted under this chapter constitutes the city’s consent to grantee’s limited and incidental use of right-of-way to the extent that facilities are located within it.

(Ord. No. 2108, § 1.5, 6-15-00)

51-6—51-20 Reserved.