06-23-25-R - Laserfiche WebLink

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Page 1 of 2 CONSENT ITEM – 8B MEMORANDUM DATE: June 23, 2025 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Letter of Support for Xcel Thermal Energy Network Demonstration Project Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table, or deny the following: • Approval of Letter of Support for Xcel Thermal Energy Network Demonstration Project Background In February 2025, the Minnesota Public Utilities Commission approved Xcel Energy’s Natural Gas Innovation Plan, in response to Minnesota’s 2021 Natural Gas Innovation Act. The plan is intended to reduce greenhouse gas emissions, explore innovative technologies, and support the state’s transition to a lower-carbon energy future. Xcel Energy's plan includes several pilot programs and research and development projects. One of them is a Thermal Energy Network demonstration project for a roughly 500-ton community ground-source heat pump system owned and operated by Xcel Energy that will provide building heating and cooling as an archetype project. Xcel Energy requests interested communities submit a letter of support for the pilot project saying they would help identify an appropriate site for the project and promote and facilitate the project if selected. This is the first step for communities that might be interested in a geothermal powered community energy system project. By submitting this letter, Xcel Energy will consider Rice Creek Commons for participation in this demonstration project, but there is no obligation to participate. On June 2, 2025, the Joint Development Authority (JDA) approved this letter of support and directed JDA staff to bring this to their respective elected bodies for consideration of joint support between the JDA, Ramsey County, and the City of Arden Hills.