The Sahan Journal reports about an ordinance under consideration in Minneapolis that would increase fees on utility bills to “finance improvements to boost energy efficiency and decrease emissions.”
The Sahan Journal reports:
A proposed ordinance to increase franchise fees, which are a percentage of gas and electric bills that goes to the city, was introduced Oct. 9. The proposal would steer proceeds from those increased fees to programs that help property owners finance improvements to boost energy efficiency and decrease emissions.
The increase would raise energy costs by about $10 a year for the average household, according to Council Member Katie Cashman, who authored the ordinance.
The proposed ordinance would raise the city franchise fees on Xcel Energy bills from 5.25 percent to 5.5 percent for residents. For commercial accounts, franchise fees would rise from 6.75 percent to 7.25 percent for small commercial accounts, and from 6.75 percent to 7.75 percent for large commercial accounts.
For CenterPoint bills, to apparently “reflect the fossil fuel emissions of gas,” residential fees would increase from six percent to seven percent for residents, and rise from a range of 7.75 percent to 9.5 percent for commercial customers to between 8.25 and 9.5 percent.
The Sahan Journal reports:
Mayor Jacob Frey’s 2023 Climate Equity Plan proposed allocating $10 million annually from franchise fees for zero-interest loans and rebates aimed at lowering emissions from city buildings. But in 2024, only $8.4 million was raised for those programs, according to Minneapolis Budget Director Jayne Discenza.
“That’s not enough,” Cashman said. “The first week of October it was 90 degrees out. It served as a reminder that climate change is here, as the scientists predicted, and it’s impacting our day to day lives. It’s a reminder that we need to be bold on climate change.”
The funds would be directed to add $5 million annually to the Green Cost Share Program, which reimburses property owners for improvements like adding solar panels and efficiency upgrades. The fund runs first-come, first-served until funds run out. Most franchise fees go to the city’s general fund, but in 2024 $8.4 million “was dedicated to climate projects” through this fund.
Xcel Energy committed to lowering its emissions in Minneapolis 91 percent by 2030 in February through new franchise agreements. CenterPoint agreed to cut emissions between 20-30 percent by 2035. The city can modify its franchise fees anytime through ordinances, however.
The ordinances, one for electric service and another for gas, will have a public hearing on November 13, 2025. The earliest the Council could vote on the measure would be December 11, 2025.
