PacifiCorp, an Oregon corporation doing business as “Pacific Power,” has operated in the City of Yakima since 1969 pursuant to a franchise to locate, construct, maintain, and operate electric transmission and distribution lines within the City. The most recent extension of PacifiCorp’s franchise was passed by the City Council on August 23, 1994, and it is set to expire in October of 2019, necessitating renewal of the franchise agreement.                         

The attached ordinance is presented to the Council after several rounds of negotiation between the City and PacifiCorp. The ordinance grants PacifiCorp a 20-year extension of the franchise. RCW 35.21.860 does not allow a city to impose a franchise fee on an electricity distribution business, however, pursuant to YMC 5.50.050, PacifiCorp pays a utility tax to the City of six percent of gross revenue derived from its business in the City.