Under Minnesota state law, cities can impose a fee on utility companies that use the public rights-of-way to deliver service.
What is a franchise fee?
Under Minnesota Statute 216B.36, cities can impose a fee on utility companies that use the public rights-of-way to deliver service. These utilities then pass on these charges to utility customers on monthly bills. As fees are collected through monthly customer bills, utilities then return the fees collected back to the city.
How does St. Louis Park use franchise fees?
The franchise fee is used to fund transportation infrastructure projects including street rehabilitation, street overlays, parking lot rehabilitation, and sidewalk repairs.
How much are the franchise fees?
The amount of a franchise fee depends on how a property is classified.
Electric (Xcel Energy)
- Residential: $6.75/month
- Small Commercial and Industrial – Non-Demand: $12/month
- Small Commercial and Industrial – Demand $48.50/month
- Large Commercial and Industrial: $148.50/month
Gas (CenterPoint Energy)
- Residential: $6.75/month
- Commercial A: $6.75/month
- Commercial/Industrial B: $12/month
- Commercial/Industrial C: $48.50/month
- Sm Vol, Dual Fuel A & B (SVDF A & B) : $48.50/month
- Lg Vol, Duel Fuel (LVDF): $148.50/month
How much does the city collect in utility franchise fees?
In 2023 the city received an annual total of $4,967,621 in utility franchise fees. This number varies depending on the number of customers billed.
Where can I learn more about the city's cable franchise agreements and fees?
Visit the city's ParkTV page to learn more about cable franchise agreements and fees.