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UTILITY FRANCHISE AGREEMENTS INFORMATION SHEET <br />MINNESOTA <br />�& Xcel Energy°' <br />The Basics of Utility Service <br />Electric and natural gas utility companies provide essential services to the public. <br />Minnesota has designated electric utility service providers for each part of the state. <br />These utilities have the exclusive authority and obligation to provide service to all <br />customers in their designated service territories. <br />State law allows utilities to use public rights of way to locate poles, wires and natural <br />gas pipes. Public rights of way typically include public roads, highways, streets, bike <br />lanes and sidewalks. Local governments that have the responsibility to manage the <br />rights of way and have an interest in where the utilities locate their facilities. <br />Utility Franchise Agreements <br />A franchise agreement sets expectations between a city and Xcel Energy, including <br />how we construct, operate and maintain our equipment located in the public rights <br />of way. Franchise agreements can also address things like tree trimming and <br />roadway restoration when a utility project has been completed. In addition to the <br />conditions in franchise agreements, cities may require utilities to obtain permits for <br />work within the right of way. <br />Franchise agreements do not set energy goals, determine the mix of energy <br />resources used by a utility, set energy prices or service standards. Those policy <br />decisions are made by the Minnesota legislature and regulated by the Minnesota <br />Public Utilities Commission and cannot be included in franchise agreements. <br />Xcel Energy Franchise Agreements <br />We have more than 370 franchise agreements in Minnesota. These shared <br />agreements enhance strong working relationships with the communities we serve <br />by providing clear expectations while supporting consistent and efficient operations <br />and service. <br />In some cases, a city may choose to establish a franchise fee as part of the franchise <br />agreement. This is done in cooperation with Xcel Energy and is executed through <br />a separate ordinance, which can be implemented at any time during the life of the <br />franchise agreement. In these cases, we collect the fee from our customers and <br />transfer it directly to the city on a quarterly basis. <br />xcelenergy.com I © 2022 Xcel Energy Inc. I Xcel Energy is a registered trademark of Xcel Energy Inc. 1 22-11-618 <br />