Description
About franchise agreements
We have 10-year franchise agreements with Xcel Energy and CenterPoint Energy. These agreements decide how the companies operate in Minneapolis. They also help decide the costs involved. We collect fees through these agreements and use some of those funds for climate action. They also include commitments from the companies to cut emissions from electricity and natural gas.
These agreements are important because:
- They help lower city-wide emissions
- They provide funds for climate action
What we’re doing
In February 2025, our City Council approved new franchise agreements. Mayor Jacob Frey signed these and two memoranda of understanding (MOUs). In these historic agreements, both companies set Minneapolis-specific goals to cut emissions. This is the first time in the U.S. that these utility companies have set goals like these for a city.
"Minneapolis continues to be a national leader when it comes to climate action, and these franchise agreements solidify that. We've secured Minneapolis-specific greenhouse gas reduction goals from both Xcel and CenterPoint—a first in the nation for any city served by these utility providers."
- Mayor Jacob Frey
The two utility companies plan to do more than their usual climate goals. They know our city’s climate work is urgent. Here's what they're doing:
- Xcel Energy will lower emissions from electricity use in Minneapolis by 93% by 2035
- CenterPoint Energy will lower emissions from natural gas use in Minneapolis by 20-30% by 2035
The agreements will:
- Improve accessibility in the public spaces where utility infrastructure is present
- Secure $200,000 each year in utility permit fees for improved utility oversight
- Improved infrastructure planning information sharing between Utilities and City staff