COVINGTON, Ky. — The city of Covington has filed legal action against Duke Energy, hoping to secure a franchise agreement with the company.
Mayor Joe Meyer said a successful case would force Duke to be more responsive to the city's concerns and the needs of residents. The issue concerns only electric service, not natural gas service, which Duke also provides.
Duke is forcing the city’s hand in filing a lawsuit after five years of negotiation and mediation “went nowhere,” Meyer said.
“Duke refuses to honor our request for the franchise agreement, so we’re going to court to have a judge settle this dispute,” he said. “Duke doesn’t always follow our rules. They don’t follow our city ordinances. They rent out their poles to people without telling us, depriving the city of revenue.”
Meyer said Duke has franchise agreements with almost all other northern Kentucky cities. According to the city’s complaint, Duke said it believes it operates in Covington under an exclusive, perpetual franchise it “inherited” as the successor of the Covington Electric Light Company.
That company’s 1882 charter predates the Kentucky constitution, which limits franchises to a 20-year term. But the city said a 1904 Supreme Court case extinguished that franchise.
“Duke's claim that they have a perpetual franchise fails in the face of law, past court decisions and is quite frankly just ridiculous," Meyer said. "It’s overreach by a North Carolina company who wants to take advantage of Kentuckians. To our lawyers, it’s pretty black and white that Duke is dramatically overstepping.”
He said the company’s policies have had negative effects on residents and businesses. Restaurant Herb and Thelma’s Tavern received a city grant to paint its building for its 100th anniversary a few years ago.
“Duke wanted to charge them $3,000 to secure the wires so they could paint their building,” Meyer said. “Duke makes life very difficult for our residents and our businesses.”
He said the company has also not been compliant with the city’s right-of-way encroachment ordinance.
Spectrum News 1 reached out to Duke Energy for comment. The company said in a statement, "Duke Energy Kentucky looks forward to continuing to provide safe and reliable service to its customers in Covington in accordance with Kentucky's certified territories act and in accordance with its state-granted electric franchise, as it has for more than a century."
Despite the friction and preparing to leave his office in Jan. 2025, Meyer said he hopes this doesn't result in an end to Covington and Duke’s continued partnership. As for residents, Meyer said the ongoing litigation will have no effect on rates and the availability of electric service.
The lawsuit was filed in two places: Franklin Circuit Court, where Duke’s registered agent in Kentucky is located, and the state public service commission, which regulates utilities in Kentucky.
