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Town of Erie
File #: 25-539    Version: 1 Name:
Type: General Business Status: Agenda Ready
File created: 9/22/2025 In control: Town Council
On agenda: 10/7/2025 Final action:
Title: Black Hills Energy Presentation
Attachments: 1. Presentation
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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SUBJECT:
Title
Black Hills Energy Presentation

Department
DEPARTMENT: Utilities Department


Presenter
PRESENTER(S): Todd Fessenden, Utilities Director
Black Hills Energy
.

Time
TIME ESTIMATE: 30 minutes
end
For time estimate: please put 0 for Consent items.

Fiscal
FISCAL SUMMARY:
N/A

Policy
POLICY ISSUES:
The Town Council is responsible for voting on any Franchise Agreements that are proposed in the Town.

Recommendation
STAFF RECOMMENDATION:
Presentation only

Body
SUMMARY/KEY POINTS
* This item is coming before Council to prepare Council for a future vote on a Franchise Agreement.
* Black Hills Energy provides natural gas services to a significant portion of the Town, particularly in the growing eastern side of Erie.
* While residents in the Xcel service area of the Town continue to operate under a Franchise Agreement and fee, the residents in the eastern area have no fee or agreed upon terms of operation.

BACKGROUND OF SUBJECT MATTER:
Black Hills Energy (BHE) will give a presentation about their services in the Town of Erie, commitment to safety, regulatory oversight and current filings, franchise agreements and fees, and sustainability efforts.

History:
Town of Erie staff have been working with BHE since the fall of 2019 to negotiate a Franchise Agreement. Based on these negotiations, staff and BHE representatives developed a proposed Franchise Agreement that is similar to an agreement the Town has with Xcel Energy covering Xcel's service territory in the remainder of the Town.

After negotiating a proposed agreement, BHE and staff made multiple presentations to prior Council (Board), most recently in 2023. When staff presented a proposed Franchise Agreement for the Board of Trustee's consideration on May 25, 2021, a motion to approve the proposed agreement died for a lack of a second. Board members at the time did not indicate specific reasons for their lack of support for the proposed agreement but did note conc...

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