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Lake Elmo adopts electric and gas franchise ordinances and fee schedule, sets franchise-fee revenues to two reserve funds

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Summary

Council adopted franchise ordinances with Xcel Energy and CenterPoint Energy and approved franchise-fee ordinances intended to generate roughly $500,000 annually; council also adopted resolutions to publish the ordinances and to deposit collected fees 50% to infrastructure reserve and 50% to park/reserve fund.

The Lake Elmo City Council adopted franchises granting Northern States Power Company (Xcel Energy) and CenterPoint Energy permission to place and maintain electric and gas facilities in city right-of-way and approved ordinances that impose franchise fees on those utilities.

Kennedy & Graven attorney Robert Volz explained that franchises function as both ordinances and negotiated contracts that supplement the city’s right-of-way management code. He said negotiation topics frequently include relocation costs, permit-fee waivers and other operational…

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