Public hearing slated for Feb. 1

Creston City Council has set a public hearing for a proposed ordinance granting a new electrical transmission franchise to ITC Midwest LLC 6 p.m. Feb. 1.

Creston City Administrator Mike Taylor said ITC is the company that owns the transmission lines that bring power to Creston.

“They need to have a franchise agreement that basically mirrors Alliant’s. There’s no fees involved,” Taylor said. “They don’t collect any money. They don’t charge us anything. It is more of a legal document.”

Taylor said the franchise agreement dictates where substations and utility poles can be placed.

The city renewed its electric franchise agreement with Alliant Energy in 202. The ordinance proposed during the council’s meeting Tuesday states the city would enter into a nonexclusive, 25-year franchise agreement allowing ITC Midwest’s lines to connect and bring electricity to Creston.

According to the proposed ordinance, ITC Midwest, LLC — a wholly owned subsidiary of ITC Holdings Corporation – requested the enactment of a city ordinance allowing the company to “acquire, construct, erect, maintain and operate an electric transmission system” in Creston.

If the second and third readings are approved by the city council, electricity from ITC Midwest would transfer to Alliant Energy’s distribution network before being sold to the consumer. Per the 25-year agreement, the city has limited rights of cancellation added on the sixth, twelfth and eighteenth years.