City of Rochester Considers Adding Monthly Fee to Natural Gas Bills

Rochester, MN (KROC-AM News)- The City of Rochester is considering tacking on an extra fee to monthly natural gas bills. 

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A news release issued by the city is asking for residents, and businesses to provide their feedback and stresses a decision on whether or not to implement a fee structure has not yet been made. 

Late last year, the city launched a website that shares what a so-called “Natural Gas Franchise Fee” structure would look like. It also highlights 62 Minnesota cities where natural gas fees have been implemented.

The average monthly fee paid in those cities, which includes Northfield, Faribault, Mankato and St. Paul, is $3.50.

City of Rochester Lays out Potential Structures for Possible Natural Gas Franchise Fees

The website shares three different rate schedules. The first would be a flat monthly fee that does not factor monthly gas use. 

A second option would base the monthly natural gas fee on the customer's usage. Homes and businesses would be charged per therm, which is the unit of measurement used to calculate natural gas usage. 

Option three is called a “tired flat fee.” Customers would pay a flat monthly fee based on their annual natural gas usage.

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If the Rochester City Council were to adopt the fees, the revenue raised would go towards “environmental priorities and expand programs that deliver direct benefits to households and businesses,” the news release says.

The website indicates revenue raised from the fees could be evenly split into two categories. 

Half would go towards residents and businesses in the form of rebates, building energy improvements, green business grants, incentives for construction of high-efficiency buildings and funding for community-led efforts to improve energy efficiency and lowering greenhouse gases. 

The other half would go to the city and fund efforts to reduce the city’s energy costs that are paid through taxes and fees already on the books. 

City of Rochester Calls for Public Feedback as it Considers Implementing Natural Gas Fees

“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 the City Council make an informed decision aligned with community values." 

The city has announced five upcoming listening sessions for residents and the public to share their thoughts on a potential natural gas franchise fee. 

The first session is scheduled for Friday, January 30. The full schedule is available by clicking here.