Minneapolis council weighs utilities' greenhouse gas deal

Minneapolis City Council members today will vet new agreements with utility companies aimed at reducing greenhouse gas emissions.

Related: Minneapolis debates getting into electricity business

The city has negotiated new franchise agreements with Xcel Energy and CenterPoint Energy. As part of that process, the utilities agreed to work with Minneapolis on its climate action plan.

Council Member Cam Gordon said he hopes the agreements will help combat global warming but conceded it's only the first step in a long process.

"This is not going to solve that problem on Monday or whenever this gets signed and passed, but I do think that it's something to celebrate," he said. "It has the potential to show how there might be a new way for government to have an impact on utility companies."

The agreements contain no binding commitments for greenhouse gas reduction. But they give the city the option of ending the utilities' franchises after five years if they don't make progress toward the goal.

Last year, Minneapolis explored the possibility of creating its own electric utility company. That effort fizzled in the face of strenuous opposition from Xcel Energy, which estimated it would cost more than $1 billion.

The city's current utility franchise agreements are 20 years old. They expire at the end of the year.