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Chaska council adopts electric franchises and a 5% franchise fee for Minnesota Valley and Xcel
Summary
After a months-long process the council adopted four ordinances granting electric utility franchises to Minnesota Valley Electric Cooperative and Northern States Power (Xcel) and implemented a 5% franchise fee; the council also approved publishing ordinance summaries per state statute.
The City of Chaska on June 16 adopted ordinances granting electric utility franchises to Minnesota Valley Electric Cooperative and Northern States Power (Xcel) and implemented a 5% franchise fee for both utilities.
City staff said the change creates parity across utilities that use the city’s public right-of-way and will provide funds to acquire and maintain rights-of-way and protect city-managed infrastructure during construction. “We impose these franchise fees as a way of providing resources to acquire the right of way to maintain the right of way and to ... ensure that those utilities are not damaged and services not interrupted,”…
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