Dive Summary:
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Despite the city of Minneapolis, Minnesota weighing whether to form a municipal utility when its 20-year agreement with Xcel Energy ends in 2014, and even going so far as to consider whether to put the question to vote on the ballot this November, politicians have hit pause on the move.
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After Xcel Energy's Northern States Power Company - Minnesota CEO David Sparby promised to work with the city towards its energy goals in a letter to Mayor R. T. Rybak on August 8, Rybak replied, arguing the city "should not preempt the conversations that come next by putting a question about municipalization on the ballot three months from now."
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City Council Member Cam Gordon, a leader of the push towards municipalization, indicated he would no longer be moving forward with a resolution to put the question on the ballot: "Maybe we can give this some time and see what kind of partnership evolves.”
From the article:
The debate has intensified as Minneapolis leaders decide how to proceed when the city’s 20-year franchise agreements with Xcel and CenterPoint Energy expire at the end of 2014. Those agreements give the utilities public rights of way in exchange for millions of dollars in fees for providing electric and natural gas service across the city.
Minneapolis Energy Options, an environmental coalition, has pressed officials to explore alternatives to signing another 20-year agreement in order to more aggressively pursue the city’s greenhouse gas reduction plans. In addition to weighing the creation of a municipal utility, officials are also considering shorter-term franchise agreements with the utilities that demand more renewable energy sources.