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In this issue:
Protect Funding for Energy Savings in Minneapolis + Connect with Neighbors in doing so!
Earlier this month on August 3rd, we shared an action alert to send a message to Mayor Frey to reconsider his plans to divert an estimated $4 Million of new utility franchise fee revenue to the general budget. See updated version of our action alert here which gives a more complete backstory. In sum, the Minneapolis City Council voted 10-3 late last year to raise this additional annual $4-$5 million intended for toward low-income weatherization projects to relieve the energy cost burden. When the popular city-backed programs ran out of funds by late summer in both 2024 and 2025, it left many unable to participate. That was a sign that the original level of new funding from the 2023 Climate Legacy Initiative was not enough.
The city council will hold at least 3 public hearings for you to weigh in on the city budget. They will create and hold votes on amendments to modify the mayor's original recommended budget proposal prior to taking a final vote on the overall budget. We have to organize locally with neighbors to call on our elected leaders. To do the base building work of protecting the $4 million and to come up with the best messages to send to city leaders and to, Unidos MN is hosting a series of at least 5 "Connect for Climate" events across Minneapolis in September, organized by city council ward. Attend the event of your choice by RSVPing here or clicking on the image below to learn a multitude of ways on how you can get involved in making Minneapolis carbon-free by 2040 and build healthier neighborhoods.
Can't attend? Here is a simple petition action:Unidos MN also has a petition to the Mayor and City Council which you could sign that is customizable so you can and add your own message. Wanting to save on your own energy utility bill?Check out Community Power's Good Energy Connections energy navigators project to see which program is best for you. Translating climate action into actual results starts with defending our democracy and norms for good governance so we can protect our ability to win the funding communities need. On that note, there is an additional timely piece that Community Power can add in:
How to weigh in on the redrawing of Minneapolis' Green Zone boundaries by Sept 13thA decade ago, Minneapolis established these special environmental zones on the city’s north and south sides. The two Minneapolis Green Zones (Northside and Southside) are place-based policy initiatives designed to improve public health, reduce concentrated environmental pollution, and spur sustainable economic development in low-wealth communities and communities of color that have faced historic underinvestment. This ties into the Minneapolis Climate Legacy Initiative because the Green Zone boundaries are a way to prioritize where the city directs its resources.
Now, the boundaries are due to be redrawn, and the city wants to hear from you. See more in the article: "Residents in Minneapolis ‘green zones’ want more benefits, power as city redraws boundaries"
Complete the Green Zone Map Survey by September 13th, 2026To make it user friendly, we have a Google Doc of the whole survey so you can see the options side-by-side.
An example of a map in the survey In the City of Minneapolis Green Zones redistricting data tool and survey, the data is split into census tracts to evaluate cumulative pollution burdens or social vulnerability across the city. The percentiles (often shown as a normalized rank) indicate how heavily burdened a specific area is relative to all other census tracts in Minneapolis. Additional Core Purposes and Goals
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The Work _______________________________________________________________________Advancing Energy Democracy
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Community Power channels its expertise into three focused program areas. By addressing challenges at the state, city, and grassroots levels, we’re building a sustainable and equitable energy future for all.
Minnesota PUC approves higher Xcel Profits at customers' expenseA new article from Karlee Weinmann with the Energy and Policy Institute Reports dives into this story and showcases how utilities are gaming the system to benefit their shareholders.
The Minnesota Public Utilities Commission (PUC) issued a verbal decision in June followed by a written order on July 31st to allow Xcel to collect about 5.8% more from its Minnesota customers. That is a $211 million rate increase. The PUC made this ruling over the strong objections from consumer advocates and Xcel customers, who filed an unprecedented ~8,600 public comments in the proceeding, almost entirely opposing the rate hike. That included the Citizen’s Utility Board of MN (CUB) who has covered the story in depth. CUB argued late fees and reconnection fees should be reduced or eliminated. The PUC did include some affordability provisions in its decision such as approving Xcel’s Power On program. While rate cases can get complex, here is one part of it that is straightforward. On a 3-2 vote, the PUC boosted the guaranteed profit rate for Xcel utility shareholders from 9.25% to 9.6%. This guaranteed profit, known formally as the Return on Equity (ROE), is what enables energy utilities to make guaranteed profits on capital-intensive infrastructure projects such as new power plants and transmission lines. This ROE is included in the base rates charged to customers. As a result, the PUC authorizing what may seem like a small 0.35% increase is actually a substantial profit boost that could cost customers an extra $35 million per year in perpetuity. According to the Energy & Policy Institute: If a customer has a $100 electric bill, something on the order of $15 of it isn’t paying for electric poles, or wires, or power plants. It’s paying a wealth transfer to Wall Street and the company’s executives rather than improving service.
Every expert who testified at the PUC hearing (who is not affiliated with Xcel) recommended that Xcel’s ROE ought to either stay at 9.25% or be decreased. That would both help with affordability for customers while still leaving Xcel with enough ROE to attract capital. Citizens Utility Board is now reporting that Xcel Energy’s 2026 second quarter earnings are up $142 million compared to 2025, increasing by more than 30% ! Despite that, 3 members of the PUC voted 3-2 to raise it to 9.6%. As a typical negotiating tactic Xcel originally asked for their Return on Equity to be 10.3%, which is higher than they could justify. So that way, the final 9.6% offer which they ended up being ok with could be pitched as a compromise. Update: CUB, the Minnesota Attorney General's office, and the Minnesota Department of Commerce have asked the PUC to reconsider their decision to increase Xcel's authorized ROE. See the petition.
This rate case ruling by the Minnesota PUC stands in sharp contrast with actions taken in several other states where governors, legislators, and regulators are investigating utility profits and even pursuing profit caps to provide relief to ratepayers. For example, Pennsylvania lawmakers have gone straight at the utility profit problem plaguing power bills -- capping the utility's profit rate with a bill that would establish a formula for ‘reasonable return’ on equity when utilities pursue rate hikes. These rising costs also led PA Governor Josh Shapiro to launch a new watchdog special counsel to scrutinize utility profits. In addition, Michigan lawmakers are also taking aim at utility profits.
The cumulative effect of seemingly small rate hikes every few years adds up to Xcel’s rates increasing by 98% since 2005. That is almost twice the rate of inflation. Meanwhile, Xcel reported $2 billion in profits last year. This is all part of a national picture where Americans’ electric bills are skyrocketing as utilities rake in record profits. For example, Entergy Arkansas is asking for a profit INCREASE during an affordability crisis. Investor-owned utilities pocketed $244 billion in profit from customers from 2021 through 2024 according to the Energy and Policy Institute.
In the past, utilities were largely run by engineers whose mission was straightforward: keep the lights on. Today, that mission is very different. Now we see utility monopolies profiting from gold-plating, waste, and inefficiency as seen in this article: "Where’s all the f&$*#ing money going?" the Waste and Costs of American Utilities As the author of this article, Matt Stoller puts it, “They are willing to waste $1,000 to send an extra $60 to shareholders.” Utilities are “truly paid to fritter away money, to gold-plate and waste” he writes. And, if that’s not bad enough, in some states these same utilities can spend your money on political activities. According to the Energy and Policy Institute, in states where laws prohibit utilities from charging customers for political spending, consumers are saving hundreds of millions of dollars a year. See more about the topic in this fantastic video from Robert Reich explaining how excessive utility profits are driving up your bill and concludes by calling for public power campaigns.
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Additional Articles & Jobs
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