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Council opens discussion of a natural‑gas franchise fee to fund climate and efficiency programs
Summary
City staff on Sept. 8 presented options for a natural‑gas franchise fee, including a flat monthly account charge, a per‑therm charge or a percentage of utility revenue, and described potential uses such as weatherization grants and electrification pilots.
City staff presented options on Sept. 8 for a potential natural‑gas franchise fee and how proceeds could be used to support environmental stewardship and energy efficiency in Rochester. The briefing identified three common fee structures: a flat monthly account fee, a per‑therm charge tied to natural gas consumption, or a percentage of utility revenue. Staff estimated the potential range of revenue for illustrative fee levels and described programmatic options for investments.
Staff framed franchise fees as a charge for use of the public right of way and emphasized the city already receives similar payments (pilots) from some…
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