Many municipalities enact a “Franchise Fee” on utility companies, such as Sam Houston EC, for operating within their city limits. Franchise fees are charged to the utilities that provide services within each city’s limits.
An executed franchise agreement between a city and Sam Houston EC requires the Cooperative to pay a franchise fee based on the cost of a consumer-member’s electric energy. The franchise fee will appear as a line item on some Sam Houston EC member's bill each month. While most franchise fee agreements have been in place since the 1970s, beginning January 2025, the fee will be listed as a separate line item on Sam Houston EC bills.
If you feel that your location is not located within the city limits and this notice is in error, you may contact your city.