Grand Forks council talks changes in franchise fees

It’s not a done deal but the Grand Forks council took the first step last night towards amending a franchise fee agreement with area power companies.  The new deal would reduce the two-percent fee to .75% for so-called large users.  Right now the city doesn’t have any customers that would qualify for the                20-megawatt discount.  Matt Marshall of Minnkota Power says that’s not to say it won’t happen.  “Most notably right outside the border is zero.  We have been in discussions with extraordinary users and they say why don’t we go there…they don’t have any.”

Council President Dana Sande says he’s O-K with the proposed change from an exonomic development standpoint.

In 2020 the franchise fee for Nodak Electric generated $390,338 – and the fee for Xcel $930,609.   Supporters say attracting a large user would bring new dollars into the city.  Final approval of the plan is not expected until early March.

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