The chairman of North Dakota’s Public Service Commission is weighing in on a proposal by the Fargo City Commission to raise utility franchise fees from 2 percent to 4 percent.
It was part of a preliminary budget presented by Fargo Mayor Tim Mahoney – and it would raise around $11 million. The cost will be a “pass through” to customers of the utilities.
The estimate is that apartments and smaller homes would pay an added $36 per year. Family homes would see another $60 per year, while larger residents would increase by $120.
But PSC Chairman Randy Christmann said it’s not that simple. He said it appears the proposal is based on a dwelling’s square footage – assuming that someone with a larger home would pay more than twice as much as someone in a small home.
"In the winter, when the gas bills are high on the small apartments and homes, some of the owners of the larger homes are in Arizona or Texas in their winter homes," Christmann said. "Their thermostats are turned way down. They also have the most efficient furnaces, windows, doors and insulation."
Christmann said he’s concerned the increased fees would hit the economically-disadvantaged much harder than others. He said Fargo commissioners could have reached out to PSC staff, because of the Commission’s experience with rate cases.