Client in Orlando has a new line item on their OUC bill that appeared about 6 months ago — "Right-of-Way Utilization Fee" at $18.50/month. This is separate from the franchise fee which is also on the bill. I've never seen a ROW fee as a distinct line item before. Is this a new authorized charge or is OUC trying to double-dip?
Right-of-way fee showing up as separate line item — never seen this before
OUC is a municipal utility so their charges are governed by the Orlando city council rather than the Florida PSC. Municipal utilities have more latitude to add fees than investor-owned utilities. That said, every charge still needs council authorization. I'd request the council resolution or ordinance that authorized this specific fee. If it's legitimate, it should be separate from the franchise fee — ROW fees compensate the city for physical use of public land, while franchise fees are for the exclusive operating franchise. But if the franchise agreement already includes ROW compensation, this could be redundant.
Phil's right that you need to trace the authorization. The distinction between franchise fees and ROW fees is that franchise fees are typically a percentage of revenue while ROW fees are often flat monthly charges. Both compensate the municipality for utility infrastructure in public space, so there is potential for overlap. For your client, the question is whether the franchise agreement already covers right-of-way access. If it does, the separate ROW fee could be an unauthorized duplication. Pull both the franchise agreement and the ROW fee authorization and compare the scope of each.
Found it. OUC board approved the ROW fee in November 2020 as a separate line item for commercial accounts with service connections that cross multiple public rights-of-way. It is authorized but my client only has one service connection, not multiple. Going to dispute the applicability to this specific account.