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East Grand Forks council holds public hearing, gives first readings on Xcel gas franchise and fee
Summary
The council held a public hearing and gave first readings to ordinances updating a gas franchise and adding a franchise fee for Northern States Power (doing business as Xcel); staff said changes would take effect Dec. 1, 2025, if adopted and published.
The East Grand Forks City Council held a public hearing Aug. 5 to consider updates to the city’s franchise agreement with Northern States Power Company (doing business as Xcel) and to implement a natural-gas franchise fee, and the council gave both ordinances a first reading.
City staff told the council the current franchise was approved in 2005 for a 20‑year term and is up for renewal. Staff said the ordinances on the agenda were for first reading and that a second reading and final action would occur in a later meeting; if adopted, Xcel would publish required customer notices and the city has scheduled an effective date of Dec. 1, 2025, in the proposal.
Staff emphasized that commodity gas prices are regulated by the Minnesota Public Utilities Commission and that the city’s franchise and the PUC process address different issues. The presenter said one email submitted to the council concerned retail gas prices rather than the franchise fee and suggested those comments may be better addressed through the PUC’s process.
Council members had limited policy debate during the hearing; questions at the first reading focused on whether commercial firm-demand or small interruptible pricing had changed since prior discussions. City staff said there had been no change in those commercial pricing categories since the council last reviewed the matter.
The council gave first reading to two related items: an ordinance granting Northern States Power Company authority to construct and operate a gas distribution system within city rights-of-way, and an ordinance to implement a gas service franchise fee for gas service in East Grand Forks. Both measures passed first reading and will return for second reading and final action in a subsequent meeting.
Next steps: Staff indicated that, after the second reading and any required publication, Xcel would have a publication period to notify customers of fee changes if the ordinances are adopted.
