Laserfiche WebLink
Metadata
Document management portal powered by Laserfiche WebLink 9 © 1998-2015 Laserfiche. All rights reserved.
RELEVANT LINKS: <br />League of Minnesota Cities Information Memo: 5/15/2024 <br />Gas and Electric Utility Franchising Page 3 <br /> The models are based on actual ordinances that have been reviewed by gas <br />and electric companies. Because these models are more city-oriented than <br />many currently existing franchises, utilities have objected to many of the <br />provisions contained in these models. <br /> As a result, there is likely to be negotiation on at least the following <br />provisions: <br /> • Franchise fees; in form, amount, and class of service distinctions. <br />• Fee obligation on perceived competitors. <br />• Where a city seeks additional rate and service consideration regarding <br />renewable energy or infrastructure investment. <br />• Rights regarding city-requested location and relocation of facilities. <br />• The city’s right to amend the franchise during the term. <br /> Each city must evaluate the importance of the provisions contained in these <br />models as such provisions may affect the city’s particular needs. One <br />franchise cannot fit all because of the many variations of city-utility <br />relationships, including factors such as urban, suburban, or rural settings; <br />developing versus redeveloping cities; single versus multiple utilities serving <br />the city; residential-commercial customer mix; larger employer versus <br />diversified economic base; the presence of a municipal utility or <br />contemplated utility; and revenue needs of the city. <br />Electric Utility Franchise, <br />LMC model ordinance. See <br />Section 11, Service <br />reliability, infrastructure <br />reporting. <br />Gas Utility Franchise, LMC <br />model ordinance. See Section <br />10, Service reliability, <br />infrastructure reporting. <br />One section is taken from the City of Minneapolis-Xcel Energy Electric <br />franchise. It introduces an agreement to obtain additional service and <br />reliability reporting from the utility for comparison purposes among other <br />utility service areas. These are matters governed by the MPUC and routinely <br />produced by regulated utilities, but not on a city-by-city basis. This section <br />is slightly different, depending on whether it is a gas or electric utility. <br /> Electric utilities have reliability issues such as outages and reduced power. <br />Gas utilities bring the public safety risk of unsafe gas lines when <br />infrastructure ages. This type of information is available to all customers <br />through the MPUC. Putting a provision in the franchise establishing annual <br />reporting may heighten the city and the company’s awareness of where <br />improvements can be made within the city. <br /> For cities interested in establishing additional dialog with the utility and <br />identifying its service record in the franchised city when compared with <br />other cities, this provision can achieve greater awareness and perhaps <br />heightened attention by the utility to the needs of the city.