FRANCHISE FEE: Appeal To Supreme Court Planned
The city of Des Moines is appealing to the U.S. Supreme Court over a ruling on franchise fees made by the Iowa Supreme Court.
In March, the Iowa Supreme Court ruled in a class action lawsuit against the city of Des Moines brought by Lisa Kragnes. The lawsuit claimed a franchise fee charged by the city was illegal because it was being added to the general fund and not being used to pay for regulation of gas and electric utilities – its stated purpose.
The court ruled against the city in the case, leaving the city on the hook for an estimated $35 million. The city must pay back approximately 100,000 utility customers.
The city of Des Moines is now appealing the ruling to the U.S. Supreme Court. City attorney Jeff Lester says they appeal is expected to be filed by July 5th.