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Minneapolis committee hears hours of public testimony on proposed gas and electric franchise fee increases; vote continued
Summary
City staff proposed ordinance amendments to align franchise-fee rate classes with utility rate books and raise several rates, an estimated $5 million in additional annual revenue for the Climate Legacy Initiative. Utilities and business groups objected to process; dozens of residents and advocates urged larger increases to fund weatherization. The committee continued the item for more data before a Dec. 11 council vote.
Council’s Climate and Infrastructure Committee heard a two-hour presentation and more than 50 minutes of public testimony on Nov. 13 on proposed amendments to the city’s gas and electric franchise fee ordinances that would raise rates across several utility customer classes and align fee categories with the utilities’ rate schedules.
The committee’s legal briefing, delivered by Jocelyn Bremer of the City Attorney’s Office, cited Minnesota Statute 216B.36 as the city’s authority to enter franchise agreements and to charge fees to defray municipal costs related to utility operations. Bremer said the proposed ordinance updates would align the city’s fee categories with the classes utilities use when they file rate books with the Minnesota Public Utilities Commission.
Luke Hollenkamp, a sustainability program manager, outlined the staff estimate that the proposed changes would generate about $5 million in additional annual revenue based on 2024 data and said…
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