Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Monday, August 17
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Minnesota cities tap utility fees to help fund local clean energy and climate action • Minnesota Reformer
    Utilities

    Minnesota cities tap utility fees to help fund local clean energy and climate action • Minnesota Reformer

    October 17, 20245 Mins Read


    More Minnesota cities are turning to utility customers to fund climate and sustainability projects.

    The Twin Cities suburb of Eagan is among the latest municipalities to begin collecting what’s known as a “franchise fee” from gas and electric companies in exchange for allowing pipelines, power lines and other infrastructure in public rights-of-way. The charges are typically passed on to customers in the form of a small monthly line item on their utility bills.

    As is the case with a growing number of cities, Eagan leaders last year decided to dedicate funds from its franchise fees toward its climate and sustainability efforts. It hired its first sustainability coordinator and is drafting a climate action plan that will be implemented in part with the expected $1.5 million in annual franchise fee revenue.

    “It’s hard to launch a sustainability initiative without a way to sustain it,” said Gillian Catano, the city’s sustainability coordinator. “This helps us with long-term planning and allows us to work on projects supporting our operations and to support projects in the community.”

    Use of franchise fees growing

    Cities have collected franchise fees from public utilities for decades, but today the charges are emerging as a potentially important revenue source to help budget-strapped local governments make progress toward climate targets. In the Twin Cities, Minneapolis has long used the fees to fund sustainability work, and St. Paul is considering a plan to do the same. Other examples include the suburbs of Edina and Hopkins.

    “We’ve seen a growing number of cities, across Minnesota and nationally, leveraging utility franchise fees as a tool to fund climate action and sustainability efforts,” said Julia Eagles, associate director of utility and regulatory strategy for the Institute for Market Transformation, a national nonprofit that promotes public policy to reduce building emissions. “It reflects a broader shift towards cities seeking stable, locally controlled funding sources for urgent climate priorities.”

    A National Renewable Energy Laboratory research paper in 2021 found over 3,600 municipalities collect franchise fees from their utilities and 13% use part of that money for clean energy-related projects. The work being funded by franchise fees include energy efficiency programs, municipal fleet electrification, solar panel installations, and other clean energy-related investments.

    Abby Finis, a consultant who works with local governments on climate action, said in the past, many cities added the fees into the general fund to pay for various city services. What’s different now, she said, is that more communities are tying them to sustainability staff and projects.

    “The franchise fee is something that’s already set up, and you can increase it a little bit without hurting people’s wallets too much,” Finis said.

    However, Finis cautioned that the money doesn’t “get anywhere near the amount needed to reach our goals.”

    Sometimes cities are maximizing those dollars by using them to leverage additional funds, such as through the federal Inflation Reduction Act or Minnesota’s ECO (Energy Conservation and Optimization) Act, she said.

    How other cities are using funds

    Minneapolis uses its franchise fees to fund a unique partnership between the city and utilities Xcel Energy and CenterPoint Energy. The National Renewable Energy Laboratory’s research highlighted the partnership, which was intended to accelerate progress toward the city’s climate goals but has faced questions about its effectiveness. The city increased its franchise fee in 2023, a per-household increase of about $12 per year, according to Patrick Hanlon, the city’s deputy coordinator for sustainability.

    “It was a pretty minimal increase for residential customers,” Hanlon said. Projects funded partly by franchise fees have saved city residents more than $150 million annually in energy costs and helped weatherize more than 5,000 low-income units, he added.

    Hanlon is also mayor of the nearby suburb of Hopkins, which recently started using its franchise fees to pay for solar, e-bike and electric vehicle charging initiatives.

    St. Paul Mayor Melvin Carter recently proposed charging residential franchise fees to fund weatherization, tree planting, and pay the salary of a new climate action coordinator.

    In the past, St. Paul’s climate action budget has come from general funds and grants.

    “This would be the first uniquely dedicated funding for the city’s broad portfolio of climate work,” said Russ Stark, the city’s chief resilience officer.

    Edina began using franchise fees for clean energy projects in 2015. Today, according to sustainability manager Marisa Bayer, the suburb commits about $950,000 annually from franchise fees for its sustainability programs, most of which is invested in city operations to improve efficiency, add renewable energy, and electrify municipal buildings and transportation. The money also funds a sustainable building ordinance and other policy measures.

    “The great thing is that because we have this dedicated funding source, we can move forward with projects, either identified in our capital improvement plans or supported by our community,” Bayer said. “We don’t have to go to council every year or rely solely on grants to help fund this work.”

    This article first appeared on Energy News Network and is republished here under a Creative Commons license.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleThe SEC’s X account got hacked by a 25-year-old who went by ‘AGiantSchnauzer’ and got paid in Bitcoin, feds say 
    Next Article Alabama man arrested in SEC social media account hack that led the price of bitcoin to spike

    Related Posts

    Utilities

    Utilities Were Supposed to Be the AI Trade. They’re Up 4%. The Electrification Fund Is Up 31%

    August 14, 2026
    Utilities

    United Utilities welcomes regulator green light for £975m investment plan

    August 13, 2026
    Utilities

    InvoiceCloud and Hansen Technologies Partner to Unite Billing and Payments for Utilities

    August 11, 2026
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Bitcoin

    Bitcoin ETF Options Could Boost Action on Wall Street—And Volatility, Say Analysts

    October 21, 2024
    Property

    Frasers Hospitality expands Modena by Fraser’s brand presence in China

    June 4, 2025
    Property

    UK family home for sale for £1 and it’s not far from the city centre or beautiful beaches

    June 20, 2025
    What's Hot

    Bitcoin Traders Stay Active Even as BTC Price Struggles Near $100K

    November 5, 2025

    Tech Roars Back as Energy Falters in a Sudden Market Power Shift

    August 5, 2026

    On a posé la question pour vous | La Caisse finance-t-elle un génocide à Gaza ?

    July 10, 2025
    Most Popular

    bond à 82k€ suite au report des tarifs de Trump, mais rebond limité

    April 9, 2025

    From Luxury Watches To Art And Handbags

    October 27, 2024

    The future of finance: how AI and data can boost business performance – Financial Times

    May 29, 2026
    Editor's Picks

    BlackRock Fund Gives Up China Towers After Missing Loan

    February 12, 2025

    Salesforce T3 2025 voit ses revenus augmenter, le cours de l’action progresse Par Investing.com

    January 19, 2025

    Bitcoin Options Puts Exceed $1.15B As Negative Bias Jumps to Oct. 11 Crypto Market Crash Levels

    October 16, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2026 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.