The Covington City Commission has voted to allow the city’s lawyers to bring legal action against Duke Energy.

The commission unanimously voted to allow the action following discussion in a closed, executive session on Tuesday. The commissioners did not engage in any public discussion on the matter. No suit has been filed yet, but the vote allows the legal department to begin procedures if the city decides to go that route.

The move was foreshadowed by ongoing disagreements between the city and Duke Energy over a franchise agreement, which is essentially a legal contract (and fee mandate) allowing the company to build and maintain its infrastructure on public rights of way. The city passed a requirement for franchise agreements in May, and the majority of Covington residents are Duke customers. A portion of the city’s residents use Owen Electric instead of Duke, and the city approved a franchise agreement with Owen earlier this month.

Earlier this year, Mayor Joe Meyer pitched the idea of a mandated franchise agreement with utility providers after characterizing Duke Energy’s relationship with the city as difficult. Although Duke provides much of the city with power, there has been no franchise agreement between the company and the city since the 1980s.

Duke Energy has repeatedly maintained that a franchise agreement isn’t necessary.

“For more than 140 years, since 1881, Duke Energy through its predecessor companies has provided, for a while, affordable electricity to the city of Covington without any form of franchise agreement in place,” Brain Pokrywka, one of Duke’s attorneys, told the city commission in April.

Utility rates in Kentucky are regulated by the Kentucky Public Service Commission, which sets service areas and rates throughout the state. If Duke or Owen wanted to increase rates, they would have to legally petition the commission and make their case. The Kentucky Attorney General’s office acts as a consumer advocate in such proceedings, making the case for why rates should not change. The commission then adjudicates the decision on whether to allow a rate increase.

If the city wanted to bring suit against Duke, it would likewise have to plead its case before the Kentucky Public Service Commission and the Franklin Circuit Court.

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