AP News

Court won't stop Des Moines franchise fee refunds


WASHINGTON (AP) — The Supreme Court won't hear a request by the city of Des Moines, Iowa, to stop a court decision that could force it to refund as much as $40 million in franchise fees to its residents.

In March, the Iowa Supreme Court ruled that the city must refund a portion of the franchise fee it collects on residents' gas and electricity bills because some of the fees are unlawful.

The high court on Monday refused to hear an appeal from the city.

Des Moines has been collecting about $12.6 million a year from the franchise fee. The state Supreme Court concluded the city can collect about $1.5 million a year for gas utilities and about $2.1 million a year for electric utilities. Any amount collected above that must be refunded.


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