How Do I Get a Utility Franchise Approval?

Cable television and internet franchises require state and local approval.

While many jurisdictions contract with private companies to provide utilities such as telephone, cable, water and electricity services, private utility franchises aren't so easy to start. A city, county or state has to find your plans and company stability and integrity suitable for its needs. Communications utilities may need approval from both federal and state regulators.

Instructions

1. Register your company with the Federal Communications Commission if you operate a telephone, cable or satellite communications business. Most states will require you to have an FCC registration before you can apply to their public utility commissions.

2. Contact your state public utilities commission to get information on the application and approval process. In most states, including California, you need the state's endorsement to be a licensed utility company before you can begin appealing to counties and cities for contracts.

3. Prepare a presentation on your company according to your state's specifications. Emphasize your capabilities, financial stability, ethics and a reasonable pricing scheme. Part of the state public utility commission's job is to prevent fraud, abuse and discontinuity of services. You will need to address these concerns.

4. Begin marketing your services to local municipalities and counties. You will need to contact city council members and county supervisors to get their interest and support for a bill to contract your services.

5. Prepare a comprehensive bid for your target jurisdiction's business. You may find yourself in an open bidding process alongside competitors or you might be trying to attract business away from an already established utility operation. Research the strengths and weaknesses of the competition and tailor your package to appeal to the jurisdiction's needs as best as possible.

6. Appear before the city council or board of supervisors whose approval you need. Many local governments host public hearings for citizens to observe, listen and ask questions. You will need to be prepared to take questions on the fly and to argue your case in a public forum. The result of your performance will likely impact the vote for franchise approval.

References

• Varnum Law: Cable Franchise Assignments and Transfers
• California Public Utility Commission: Customs and Practice
• New Hampshire Public Utility Commission: Regulatory Orders
• City of Bend, Oregon: Chapter 11.21
• City of Roseville: Proposition 16
• California Public Utility Commission: Final Decision Chapter 6