In recent years, cities have considered using utility revenues for energy reduction and renewable energy promotion activities. According to the Iowa Utility Association, other Midwestern cities also assess franchise fees, including more than 150 municipalities in Iowa. Many Illinois municipalities have received free electricity or gas for the operation of the city instead of payments. That is a lot of money, but Caldwell said it was necessary because it is difficult to understand how franchise tariffs should be structured, especially given the changes in the energy and supply sectors in recent years. Among them: carry out a disaster exercise in the city and require the participation of the utility company and the operator in the franchise agreement. It is in the interest of public opinion that cities are prepared to face a major emergency with flammable and explosive gas. City employees are trying to submit a Proposal Application (RFP) that would attract other interested parties to apply for the franchise agreement. The city argues that it is “clearly defined” that in the event of upgrading municipal water and road infrastructure, the distribution company must move its infrastructure to make room for the city. SDG-E responds: “The California case law is that utilities are not obliged to pay for relocations in order to accommodate municipal water projects.” The revenue from the city franchise in Minneapolis was used as partially appropriate subsidies for energy improvements for residential or commercial customers, to purchase loans for customers in green areas (with below-average household incomes) and to attempt new methods of collective engagement. b) Notwithstanding the subdivision of point a), the surcharge for gas used for electricity generation by an unpowered facility is equal to the surcharge for gas used for electricity generation by the electricity supplier for the amount of gas specified in point 454.4. The electricity market does not apply to the sale of electricity from a cogeneration or non-supply facility to a resale unit to a small customer. “It is unusual and unexpected for a company looking to extend its additional franchise relationship so as not to comply with the terms of the current franchise agreement,” Caldwell said.