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Minneapolis council raises gas and electric franchise fees to fund weatherization and clean-energy programs
Summary
The council voted to increase city franchise fees on gas and electric utilities to raise more local funding for weatherization, energy-efficiency and climate initiatives after a contentious debate about burden on low-income households. Both ordinances passed 10–3.
On Dec. 11 the Minneapolis City Council approved ordinances increasing municipal franchise fees on gas and electric utilities to fund weatherization and clean‑energy programs administered by the city. Sponsors said the change was necessary to make a sustained investment in home retrofits and to reduce long‑term energy burden for cost‑burdened households; opponents argued the fees are passed through to consumers and disproportionately affect low‑income residents.
Council member Cashman, chairing the Climate & Infrastructure Committee, presented staff modeling and advocacy letters from the Energy Vision Advisory Committee and the Community Environmental Advisory Committee showing broad resident support for increased climate funding. Cashman and others said prior franchise revenues left a $2 million shortfall in 2025 and that more funding would allow the city to scale weatherization and retrofit programs in neighborhoods with high energy burden.
Opponents including Council members Palmasano and Wansley argued the fee increase is regressive, pointing to rising household burdens from payroll taxes, insurance, property taxes and utility costs. Several members said they wanted stronger guarantees that green‑zone and environmental justice neighborhoods would see priority in program delivery.
The council adopted both ordinances by roll call (10 ayes, 3 nays). Council members who voted against cited distributional fairness and the need for clearer evidence that the most energy‑burdened households would receive priority for weatherization assistance.
What happens next: The ordinances increase the city’s utility franchise revenue stream; CLI (Clean Energy) staff will administer expanded weatherization programs and report on distributional outcomes and outreach to the council.
