DALTON, Ga. - If Whitfield County and Dalton merged, the new government could collect more than $1 million a year in franchise fees from utility providers, but that money would be paid by customers.
"It is a concern to me -- our mission is to keep costs as low as possible," said Kathryn West with the North Georgia Electric Membership Corp. "This is a basic service -- electricity -- not a luxury."
On Wednesday, West and Georgia Power representative Mark Tilden spoke to the charter commission, which is studying the possible merger of Dalton and Whitfield governments.
Under Georgia law, municipalities but not counties, are allowed to collect a franchise fee of up to 4 percent on utility services.
West said the North Georgia EMC serves about 40,000 customers in Whitfield County, collecting about $60 million a year. Tilden said Georgia Power has far fewer customers in the area.
Franchise fees are listed on a customer's bill as a separate line item and are paid to the municipality once a year in a lump sum, they said.
Officials have said franchise fees could bring additional revenue to a consolidated government. But the sum would not be significant because the major provider in the area, city-owned Dalton Utilities, wouldn't charge the fee to its 90,000 customers.
Charter members also noted Wednesday that the franchise fee is essentially an additional tax on residents.
During discussion, charter commission members Gary Crews and Tangela Johnson said they would like to hear residents' views of a possible merger.
The commission tentatively has set an end-of-the-year deadline to decide the feasibility and benefits of a merger. Hearing concerns and questions might help guide that decision, Crews and Johnson said.
"Most of the people I've talked to really don't understand what is involved in a consolidation," Johnson said.