Frey signs two franchise agreements with Xcel, CenterPoint Energy to reduce carbon emissions

Minneapolis Mayor Jacob Frey on Friday signed two franchise agreements with Xcel Energy and CenterPoint Energy as part of the city’s effort to be carbon neutral by 2050.

Frey was joined in the City Hall rotunda by nine other city leaders and community organizers to sign the agreements and two accompanying memorandums.

In 2023, the Minneapolis City Council unanimously passed the Climate Equity Plan, which sets a goal to significantly reduce climate pollution by 2030 and become carbon neutral by 2050.

“Now, going forward, Minneapolis is leading the nation in decarbonization and climate resiliency, which is even more important now that the federal administration has a ‘Drill, Baby, Drill’ approach we will not be taking here in Minneapolis,” said Seventh Ward Council Member Katie Cashman, who represents the western edge of the city.

Frey said these franchise agreements are historic to reduce the carbon footprint per person in Minneapolis.

According to Frey, Xcel Energy and CenterPoint energy committed to reducing emissions by 93% and 20 to 30%, respectively, by 2035.

“We are proud to announce that we are now the first city to get some real specific language around the goals we are collectively going to achieve in reducing greenhouse gases and emissions,” Frey said.

Xcel and CenterPoint Energy each will pay an annual flat fee of $100,000 to the city.

Cashman, who authored the two ordinances, said these franchise agreements will act as a tool to hold Minneapolis utilities accountable.

These agreements also outline service quality and program delivery equity expectations for Minneapolis residents, Cashman said, especially underinvested and underserved low-income neighborhoods. The utilities will also provide Minneapolis with complete and accurate mapping information for their infrastructure locations and investments.

These provisions were not included in the last 10-year agreement, Cashman said.

Megan Hoye, the director of Climate Equity Action, said this is a “very important moment” for a healthier, cleaner future for Minneapolis residents.

The agreements are valid for the next decade.

“These are important goals that we intend not to just have written down on a piece of paper,” Frey said. “We intend to hit them.”