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After years of unsuccessful negotiations, the City of Covington has initiated legal proceedings against Duke Energy. The dispute centers on Duke's claim that it holds an exclusive, perpetual right to provide electric service in Covington without a franchise agreement. The city argues this claim is invalid.
City officials have assured residents that the legal battle will not impact electric rates or service availability. However, they hope a favorable outcome will lead to improved collaboration with Duke and better responsiveness to local needs.
Mayor Joe Meyer criticized Duke for allegedly ignoring local ordinances and failing to follow standard business practices such as bidding processes and franchise agreements. "Duke is not above the law," Meyer stated.
The lawsuit was filed in Franklin Circuit Court and with the state Public Service Commission (PSC). It challenges Duke's assertion of operating under a perpetual franchise inherited from the Covington Electric Light Company, which predates Kentucky's 20-year limit on franchises established by its Constitution.
A 1904 U.S. Supreme Court decision, Shaw v. City of Covington, is cited by the city as having nullified any alleged perpetual rights claimed by Duke’s predecessor.
The city's complaint also highlights issues such as delays in moving electric wires during renovations and non-compliance with right-of-way ordinances, which have negatively impacted residents and businesses.
City Solicitor Frank Schultz emphasized the need for fair franchise agreements: "Right now, Duke operates as if the concerns of Covington’s businesses, residents, and lawmakers are of no importance."
