Charleston to Vote on New Utility Franchise Agreement

The proposed deal with Dominion Energy sets new efficiency limits on power line undergrounding for local business owners.

Updated on Oct. 27, 2026 in Utilities

Charleston to Vote on New Utility Franchise Agreement

Live Poll

Should your city prioritize undergrounding power lines even if it increases local infrastructure costs?

Charleston City Council is set to vote on a new franchise agreement with Dominion Energy on October 27, 2026, which establishes a formal funding mechanism for burying power lines. The proposal balances utility infrastructure improvements with strict efficiency requirements for ongoing undergrounding efforts.

Why it matters

The agreement introduces standardized funding and project deadlines to manage the historically high costs and complexity of undergrounding power lines in the city. By limiting simultaneous projects and enforcing approval timelines, the plan aims to streamline utility work that can cost up to $2,500 per linear foot.

The agreement formalizes a funding pool that saw $5.7 million in contributions from each entity over the past five years, with projections reaching $60 million total over the next two decades. Operators should note the $2,500 per linear foot cost for undergrounding and the new six-month project approval window.

The players

Charleston City Council

The local governing body responsible for municipal utility oversight and budgetary approval.

Dominion Energy

A major utility provider managing electricity infrastructure and distribution services for municipal customers.

The details

Under the proposed framework, Dominion Energy and the city will each contribute 0.5% of annual revenue collected from local customers into a dedicated undergrounding fund. To improve project efficiency, the city will cap active undergrounding work at two sites simultaneously, with each project required to secure all necessary approvals within six months or face removal from the priority list. The city retains the flexibility to supplement these efforts by allocating portions of the standard 5% franchise fee toward additional infrastructure costs.

Past 5 years: Dominion and the city each contributed $5.7 million to the undergrounding fund.
Oct 26, 2026: A Dominion representative participated in an online Q&A session regarding the proposal.
Oct 27, 2026: City Council is scheduled to make a final decision on the franchise agreement.
Next 20 years: The fund is projected to generate a total of $60 million for utility work.

Market Landscape

The proposal maintains the standard 5% municipal franchise fee structure common in the utility sector. It marks a departure from traditional utility maintenance by earmarking specific additional revenues for the high-cost, specialized practice of undergrounding.

Local business owners should track the project schedule, as the six-month approval mandate could accelerate construction timelines or disrupt site access near major work zones. Operators should consider how the prioritization of these undergrounding projects may impact utility reliability and planned maintenance windows for their own properties.

The takeaway

The move toward a formal, recurring funding model for line burial signals a long-term shift in municipal utility expectations. Business owners should monitor Council meeting minutes following the October 27 vote to identify which specific corridors are prioritized for the initial two-project slot.