Black Hills Energy briefs Erie council on franchise agreement; company cites survey opposition to mandatory electrification

Town utilities staff introduced Tom Henley of Black Hills Energy, who briefed council on a proposed franchise agreement and described company operations, safety programs and community outreach.

Henley said Black Hills serves parts of Erie and explained that a non‑exclusive franchise agreement would provide operating clarity and town recourse while typically delivering a franchise fee (commonly 3 percent) to the municipality. He described company practices including pipeline replacement programs, training for first responders and donations to local organizations, and said franchise language clarifies responsibility for infrastructure relocations and right‑of‑way work.

Henley summarized a company survey about electrification and customer preferences. He reported that most survey respondents favored the ability to choose their fuel source and that a majority opposed mandatory replacement of existing gas appliances and mandatory local policies requiring all new construction to use electric appliances. Henley cautioned the survey sample in Erie was small (51 respondents) and said statewide trends mirrored local responses.

Council members asked for comparative details with Xcel Energy’s franchise (Xcel has a 3% agreement with the town), asked how service territories are determined (the Public Utilities Commission certifies service territories), and requested an estimate of potential franchise revenue (Henley estimated a prior figure between $50,000 and $55,000 but offered to provide updated numbers). Council directed staff and the town attorney to review and compare draft franchise language; the council indicated the intent to bring a draft franchise agreement back for consideration in January. Henley and staff said they would return in January with a draft for formal consideration.