City Council Could Drop Xcel Municipalization

Following a Thursday hearing where city residents loudly opposed the formation of a city-run electric utility a the expense of Xcel Energy, the measure's sponsor is considering dropping the idea entirely.

According to the Southwest Journal, Council Member Cam Gordon said he is considering whether or not to withdraw the two resolutions would put two questions on the November ballot asking residents whether the city should move forward on forming a municipally-owned electric and gas utility.

“I’m reflecting and re-evaluation,” Gordon told the newspaper, who represents Ward 2. “One option is maybe it shouldn’t be on this (November’s) ballot.”

According to the Star Tribune, many of the 50 testifiers at Thursday's City Council hearing denounced the idea of a city-run utility taking the place of Xcel Energy. Many said the cost would not be worth the potential gains in shifting the city towards "green" generating technology and away from the coal and natural gas that fuels much of Xcel's power plants.

Xcel's CEO told the Star Tribune that he thinks the city will eventually come to an agreement with the company without taking over its infrastructure. 

“I think at the end of the day we are going to sit down, work with the city, and I think everybody recognizes the cost and risk, the enormous cost for Minneapolis, to go forward with something like that,” David Fowke said in the conference call about Xcel's quarterly financial results.

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