Why can’t people outside the City of Grand Haven vote on the BLP charter change amendment?
Franchise Agreements
Why can’t Board of Light and Power (BLP) electricity customers outside the City of Grand Haven vote on the charter change amendment that will appear on the City of Grand Haven’s November 2023 ballot? The short answer is franchise agreements. Let me explain.
In Grand Haven, the electric utility is owned by the residents of the City of Grand Haven. The charter is an established formal agreement outlining the business relationship between the City of Grand Haven and the electric utility. The residents of the City of Grand Haven that own the utility elect a board of directors to carry out their vision for the utility. The utility board directs the general manager to carry out that vision. That is why residents in the city receive their electric power through the Board of Light and Power and have direct voting privileges.
As opposed to a charter, franchise agreements between townships and the City of Grand Haven outline the business relationship between the townships and the Board of Light and Power. There are five regions that have franchise agreements pertaining to the Grand Haven Board of Light and Power: Grand Haven Township, Spring Lake Township, City of Ferrysburg, Robinson Township, and the Village of Spring Lake.
Before the franchise agreements were negotiated in the mid 1980’s, these townships received their power through handshake agreements. Today, the franchise agreements are perpetual, but townships have the ability to terminate the agreements or complain to the Board of Light and Power if the terms of the franchise agreement are being violated.
Franchise agreements grant certain privileges and define responsibilities. For example, most of these franchise agreements say the BLP can use the township right-of-ways, but does not allow the BLP to place power lines anywhere they please. Rather, the franchise agreements define terms and refer to additional permitting processes for placing lines. In addition, the franchise agreements define how activities such as tree-trimming, reporting/repairing downed power lines, and setting rates will be handled.
When the BLPCCC says that, if the charter change amendment passes, the township boards will have representation on the advisory board, they are passing misinformation. The reality is that these townships will not have any increased or decreased control over the BLP.
Regardless of whether or not the charter changes in November 2023, the township boards will retain the right to revoke their franchise agreements regarding power with the City of Grand Haven. Although it is in the continued interest of the BLP to provide quality service, the townships could enter into a franchise agreement with someone else should they so choose.
Franchise agreements were explained during the July 20, 2023, meeting of the Board of Light and Power. Please watch the following video starting at (2:27:00) for more information.