Coeur d'Alene, KEC reach 35-year deal
BILL BULEY | Hagadone News Network | UPDATED 9 months, 2 weeks AGO
Bill Buley covers the city of Coeur d'Alene for the Coeur d’Alene Press. He has worked here since January 2020, after spending seven years on Kauai as editor-in-chief of The Garden Island newspaper. He enjoys running. | March 20, 2025 1:00 AM
The Coeur d'Alene City Council on Tuesday approved a new, 35-year franchise agreement with Kootenai Electric Cooperative.
"I think Mayor McEvers may be the only one still on the council by the time this ends," joked City Attorney Randy Adams.
The franchise fees paid by KEC last year totaled $488,772.17.
The relationship between the city and KEC goes back nearly 50 years.
Adams said a franchise deal with KEC was first adopted Aug. 15, 1978, by the City Council.
The initial term was 25 years and KEC agreed to pay the city 3% of its gross operating revenue on a quarterly basis.
On June 1, 1993, the city adopted Ordinance No. 2519, which amended the agreement to increase the franchise fee to 5% of KEC’s gross operating revenues, with the fee in excess of 3% designated for the maintenance of streets and alleys.
On June 6, 1995, the city adopted Ordinance No. 2687, which amended the agreement to increase the term to 35 years.
The agreement expired Aug. 15, 2013, but no one noticed, Adams said.
"Since then, KEC continued to make payments, and the city continued to accept those payments," a city report said.
Recently, KEC’s new general counsel reached out to the city and noted the expiration of the agreement, requesting a new franchise agreement incorporating the same terms as the 1978 agreement.
The city agreed.
Entering into a new franchise agreement will ensure a productive and cooperative relationship between the city and KEC for the next 35 years, the report said.
"KEC and the city have had a great cooperative relationship over the years," Adams said.
Kootenai Electric, the largest electric cooperative in Idaho, has about 120 employees and nearly 32,000 members. It has 2,300 miles of electric line in parts of Kootenai, Benewah, Bonner and Spokane counties.
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