North Fort Myers, FL, August 14, 2025 – A line item called a franchise fee may be found on LCEC monthly electric bills in some cities or counties. While it might seem like another utility charge, these fees are imposed by governments and only collected by the utility.
Florida governments have the authority to impose a franchise fee as a means to collect additional operational funds. Utilities, like electric, water, or gas providers collect the fee in exchange for the right to operate within public rights-of-way. These are the streets, sidewalks, and alleys that utility companies must access to install and maintain their infrastructure, such as power lines and poles.
Franchise fees are not retained by utility companies. Instead, they are collected on behalf of the city or county and forwarded directly to the local government. LCEC identifies all taxes and governmental fees separately on the electric bill. All franchise fees collected by LCEC are remitted to the governmental body, and no funds are retained by LCEC. Customers who do not pay the franchise fee portion of the utility bill are subject to a late fee or disconnection of service for non-payment.
- Cape Coral – The City of Cape Coral franchise agreement was reached in 1986. Commercial and residential customers pay a 3 percent fee.
- Everglades City – The Everglades City franchise agreement was reached in 2003. Commercial and residential customers pay a 3 percent fee.
- Marco Island – The City of Marco Island franchise agreement was reached in 2004. Commercial and residential customers do not pay a fee. In 2009, City Council voted to eliminate the fee.
- Sanibel Island – The City of Sanibel franchise agreement was reached in 2005. Commercial and residential customers pay a 3 percent fee.
Lee County (unincorporated areas: Lehigh Acres, North Fort Myers, Pine Island and other areas outside of city limits) – The Lee County franchise agreement was reached in 2014. Commercial and residential customers pay a 4.5 percent fee.
LCEC works hard to manage the costs that are under its control, maintain the electric system, improve processes and create efficiencies so that electric rates will remain competitive.