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Shakopee narrowly approves pilot to offer large‑user electric rates while council debates data centers, grid capacity and rate impacts
Summary
After a lengthy debate, the Shakopee City Council approved an amendment to Shakopee Public Utilities' large‑user rate structure to make the utility more competitive with Xcel Energy for large customers. Councilors raised concerns about limited distribution capacity, environmental impacts from backup generators and possible upward pressure on residential rates; the motion passed 3–2.
The Shakopee City Council on April 7 approved a pilot amendment to the Shakopee Public Utilities large‑user rate framework designed to make the municipal utility more competitive when seeking large electricity customers. The decision followed a multi‑hour discussion about grid capacity, environmental impacts and whether the city should encourage data centers or other high‑load businesses.
Staff presentation and capacity overview City staff introduced the amendment and said it is intended as a competitive, fairness‑based pilot that would allow Shakopee Public Utilities to offer rate terms comparable to neighboring utilities. Greg Trent, general manager of Shakopee Public Utilities (introduced by staff), outlined the system’s constraints and potential:
• The distribution system can support limited large users today, with staff noting it could likely…
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