Escambia County Approves New 30-Year Franchise Agreement With EREC

January 5, 2026

Escambia County has approved a new 30-year utility franchise for Escambia River Electric Cooperative.

EREC, a member-owned cooperative, was founded in 1939 to bring affordable electric power to Escambia and Santa Rosa counties.

A franchise agreement granted to EREC by the county on January 1, 1995, was set to expire on December 31, 2025.

Last month, the Escambia County Commission approved a new franchise agreement by ordinance for a term of 30 years. Under the agreement, EREC will pay a franchise fee to the County in exchange for the nonexclusive right and privilege of supplying electricity and other services within the unincorporated areas of the county free of competition from the county.

EREC will pay the following franchise fees to Escambia County:

  • $10 per month for each customer in residential service categories;
  • $10 per month for each customer in small commercial service categories;
  • $75 per month for each customer in general service demand categories;
  • $300 per month for each customer in general service large demand categories; and
  • $3,000 per month for each customer in large transmission service categories.

The new franchise agreement will expire on December 31, 2056.

Pictured: A power substation on Highway 99A near Oak Grove that serves EREC members in the Walnut Hill area. NorthEscambia.com file photo.

Comments

2 Responses to “Escambia County Approves New 30-Year Franchise Agreement With EREC”

  1. Jason on January 6th, 2026 5:27 am

    The “franchise fee” is one of those taxes the Commissioners should eliminate in the next budget cycle. Thanks to the “Local Option Sales Tax” (L.O.S.T) the County reaps more than enough revenue to offset the loss of income of eliminating the franchise fee. The franchise fee was originally imposed on residents as a means to help balance a budget and be able to buy needed vehicles for County Operations. Now the franchise fee just adds to over-growing bloated budget. The elimination of this fee would be a start in reducing the bloated budget of our local government.

  2. Rob on January 5th, 2026 8:41 pm

    Sounds reasonable. What were the rates under the old agreement?





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Written by William Reynolds · Filed Under News