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INFORMATION SHEET <br />MINNESOTA <br />The Basics of Utility Service <br />Electric and natural gas utility companies provide essential services to the public. <br />Minnesota has designated electric utility service providers for each part of the state. <br />These utilities have the exclusive authority and obligation to provide service to all <br />customers in their designated service territories. <br />State law allows utilities to use public rights of way to locate poles, wires and natural gas <br />pipes. Public rights of way typically include public roads, highways, streets, bike lanes and <br />sidewalks. Local governments have the responsibility to manage the rights of way and <br />have an interest in where the utilities locate their facilities. <br />Utility Franchise Agreements <br />A franchise agreement sets expectations between a city and Xcel Energy, including <br />how we construct, operate and maintain our equipment located in the public rights of <br />way. Franchise agreements can also address things like roadway restoration when a <br />utility project has been completed. In addition to the conditions in franchise <br />agreements, cities may require utilities to obtain permits for work within the right of <br />way. <br />Franchise agreements do not set energy goals, determine the mix of energy resources <br />used by a utility, set energy prices or service standards. Those policy decisions are made <br />by the Minnesota legislature and regulated by the Minnesota Public Utilities Commission <br />and cannot be included in franchise agreements. <br />Xcel Energy Franchise Agreements <br />We have more than 350 franchise agreements in Minnesota. These shared agreements <br />enhance strong working relationships with the communities we serve by providing clear <br />expectations while supporting consistent and efficient operations and service. <br />In some cases, a city may choose to establish a franchise fee as part of the franchise <br />agreement. This is done in cooperation with Xcel Energy and is executed through a <br />separate ordinance, which can be implemented at any time during the life of the franchise <br />agreement. In those cases, we collect the fee from our customers and transfer it to the <br />city on a quarterly basis. <br />Utility Franchise Agreements <br />xcelenergy.com | © 2016 Xcel Energy Inc. | Xcel Energy is a registered trademark of Xcel Energy Inc. <br />Northern States Power Company-Minnesota | 16-01-639