What is a franchise fee?
It is a fee that is authorized by State Law and can be established by a city as a way to collect revenue to pay for a specific project(s). The utilities involved are required to collect the franchise fee by adding a fee to a utility bill.
Utility companies have the right to pass franchise fees on to their customers, which is noted on their gas and electric bills noted as a “City Fee.” The utility companies collect the franchise fees and remit them to the City.
Why are franchise fees a better option than increasing the property tax levy?
Franchise fees allow the city to diversify its revenue sources. By implementing a franchise fee all utility users pay a fee, not just taxpayers. All who utilize the streets will help pay for them. Franchise fees will apply to all accounts within the city, including tax exempt parcels owned by non-profits and governmental entities.
What are the monthly franchise fees?
Monthly Gas Franchise Fees
| Residential |
$1.50 |
| Commercial (Non-Demand) |
$7.50 |
| Commercial (Demand) |
$13.00 |
| Small Interruptible |
$95.00 |
Monthly Electric Franchise Fees
| Residential |
$3.75 |
| Small C&I (Non-Demand) |
$3.75 |
| Small C&I (Demand) |
$25.00 |
| Large C&I |
$150.00 |
When will the franchise fees be implemented?
The City Council approved franchise fees on February 2, 2022. Residents and businesses will see this franchise fee on their bill in approximately 90 days.
How long will the franchise fee be on a bill?
The current franchise agreements with Xcel Energy and Connexus expire in January 2042. However, it can be renewed upon Council decision at that time.
What other cities within Chisago County have franchise fees?
The cities within Chisago County with existing franchise fees include Chisago City, Lindstrom & North Branch.
Are Excel Energy and Connexus involved in instituting the franchise fee?
By law, Xcel Energy and Connexus have to collect the fee for the city, but are not responsible for the decision to implement the fees. The line item on the bill is called “City Fee.”
Is there an ongoing administration fee charged by Xcel Energy and Connexus for collecting the franchise fee?
Xcel Energy and Connexus do not apply an administrative fee associated with the franchise fee. The full amount of the franchise fee revenue collected by the utility company is remitted to the City of Wyoming. This full remittance with no administrative fee assessed to the city is required by the Public Utilities Commission. The utility companies will no longer pay right of way fees.
