01/20/2026 | Press release | Distributed by Public on 01/20/2026 11:12
The City of Rochester encourages residents, businesses and community stakeholders to learn more about potential natural gas franchise fees and share their feedback. If adopted, natural gas franchise fees could help support local environmental priorities and expand programs that deliver direct benefits to households and businesses. No decision has been made yet; public input will help determine whether the fee moves forward and how any resulting revenue might be used. More information is available online at: RochesterMN.gov/FranchiseFee
"We want the community's voice to shape this conversation," said Kayla Bezold, Sustainability Coordinator. "We want residents to fully understand franchise fees and their potential impacts. By sharing their feedback, the community can help City Council make an informed decision aligned with community values."
Residential & Community Member Listening Sessions:
Business Community Listening Sessions:
Individuals can also learn more, share feedback and request presentations on the project website.
What is a Natural Gas Franchise Fee and Why It Matters
Under Minnesota law, cities may collect a franchise fee from utility providers in exchange for use of public rights-of-way. In Rochester's case, this fee would appear as a separate, labeled line on natural gas bills from Minnesota Energy Resources and would be remitted to the City.
A natural gas franchise fee could provide Rochester with a stable, local funding source to support community-focused programs and municipal priorities, including initiatives that help improve energy efficiency, indoor comfort, reduce long-term energy costs and advance environmental stewardship, while reducing reliance on property taxes for these services.
What Happens Next
Feedback collected during the engagement period will be compiled into a report and shared with City Council ahead of discussions in Spring 2026. A final recommendation on whether to pursue the franchise fee, and if so, what model and spending priorities to propose, will be presented to Council later in the spring.