In September 2019, staff discovered that the Upper Peninsula Power Company (UPPCO) was supplying retail electric utility service to Marquette Range Coal Services Company (Cleveland-Cliffs) near the site of the former Presque Isle Power Plant without a public utility franchise. Pursuant to Article 7, Section 29 of the Michigan Constitution of 1963, and the Marquette City Charter, utility providers cannot provide public utility services within the City unless they have a franchise to do so.
In November 2019, UPPCO asked the City to grant UPPCO a limited franchise to allow it to continue providing electric utility services to Marquette Range Coal Services Company. At that time, UPPCO provided the attached Ordinance for a Limited Franchise with the following basic terms: the non-exclusive franchise would allow UPPCO to provide electric utility services solely to Marquette Range Coal Services Company, the franchise would become effective 30 days after adoption and continue for 30 years, and the franchise could be revoked by either party upon 60 days written notice to the other.
In order to fully consider the request, in December 2019 the City Attorney notified UPPCO that the request would be taken under advisement. It is appropriate for the City Commission to consider the request at this time.
Per City Charter, a public utility franchise may only be granted by ordinance, and an ordinance may not be enacted at the meeting at which it is introduced. A franchise ordinance which is subject to revocation by the city commission may not be enacted by the city commission unless a copy of the franchise ordinance has been available in the city clerk's office for public inspection for at least four weeks after publication of a notice that such ordinance is on file.
Notice of the availability of the franchise ordinance for inspection at the city clerk's office was published on April 12, 2022. This public hearing was scheduled at the May 9, 2022 City Commission meeting.
There are two primary options available for considering this request:
- Approve the attached Ordinance for a Limited Franchise with UPPCO to provide electric services to Marquette Range Coal Services Company within the City of Marquette as requested; or
- Reject the attached Ordinance for a Limited Franchise for UPPCO to provide electric services to Marquette Range Coal Services Company within the City of Marquette and authorize the City Manager to provide 60 days written notice to UPPCO to remove its personal property from City real property.