Energy Franchise Agreements and Municipalization: What Cities Need to Know

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Utilities are critical partners in cities’ abilities to meet their clean energy goals, especially in Iowa where individual customers don’t get to choose their utility.

Cities are in a slightly different position – they have limited authority over the agreements they make for utility service. When their residents demand clean energy options, they can leverage the franchise agreement process to communicate these demands. If a utility remains seriously off track, then a committed city can move to the next phase and consider forming a municipal utility.

When utilities like MidAmerican Energy are using confusing – even misleading – clean energy metrics, cities that are serious about climate action should know their options. Homegrown clean energy helps keep costs low for residents and is a critical economic development tool for attracting and retaining a vibrant business community.

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