Union considers renewing Duke Energy franchise (Ordinance 2026-09): city revenue terms

Union’s City Commission is scheduled to hold a second reading on July 6, 2026 for Ordinance 2026-09, which would renew the city’s franchise agreement with Duke Energy.

The ordinance is listed on the city’s July 6 regular commission meeting agenda that was posted July 2, 2026. The meeting is set for 6:00 PM EST at 1843 Bristow Drive in Union.

What Ordinance 2026-09 would do

Ordinance 2026-09 is written as a renewal of the Duke Energy franchise that was originally established by City of Union Ordinance 2023-09.

In the ordinance text, the city points to Section 3.7 of Ordinance 2023-09, which permits renewals for two (2) additional three (3)-year periods. Ordinance 2026-09 then states the parties have reached agreement to extend the franchise for an additional three (3) years.

The ordinance also authorizes the Mayor, Larry K. Solomon, to enter into the renewed agreement on the city’s behalf. It further says the ordinance would be effective “as soon as possible according to law,” rather than naming a specific calendar effective date.

The city revenue terms residents may want to understand

Utility “franchise” agreements can create a dedicated stream of revenue for the municipality—separate from how retail utility rates are set. Under the city’s Duke Energy Kentucky franchise agreement, the city receives:

• $2,500 as an administrative/superintendence fee (paid by the successful bidder as consideration for the three-year franchise rights); and
• 3% of Duke Energy’s gross receipts from electricity and natural gas sales for consumption within Union during the previous calendar quarter.

The franchise agreement specifies the franchise fee is paid within 30 days after the end of each calendar quarter.

Important resident takeaway: this franchise-fee revenue is money the city collects under a local agreement. It does not automatically translate into changes to your electricity/gas bill, because retail utility rates and charges are governed through Kentucky PSC-approved tariffs.

What the city’s latest audited numbers show

Union’s most recent audited financial statements include a clear snapshot of how franchise-fee revenue has been performing.

For fiscal year ending FYE 2025, the city reported franchise fees of $436,029. For FYE 2024, franchise fees were $261,827. The audited revenue summary also states that franchise fees increased due to agreement with Duke.

What to watch at the meeting (and what to ask)

Residents tracking Ordinance 2026-09 before the commission votes may want to focus on:

• Whether the renewed agreement keeps the same franchise-fee structure (3% of gross receipts, plus the administrative/superintendence fee) or includes any changes;
• How the city is planning to budget franchise-fee revenue based on recent collections shown in audited figures;
• Whether residents can get clear reporting/transparency on franchise-fee amounts over the term; and
• Enforcement/termination timing in the agreement—its termination notice language references notice effective no less than 90 days from delivery of written notice in certain default situations.

Sources

• City of Union — July 6, 2026 meeting agenda (Ordinance 2026-09 second reading)
• Kentucky PSC — Duke Energy Kentucky franchise agreement (City of Union)