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City Council Minutes 10-12-2026 SpecialMINUTES MONTICELLO CITY COUNCIL SPECIAL MEETING Monday, October 12, 2026 — 5:00 p.m. Monticello Community Center Present: Lloyd Hilgart, Charlotte Gabler, Kip Christianson, Tracy Hinz, Lee Martie Absent: None Staff: Rachel Leonard, Sarah Rathlisberger, Angela Schumann, Matt Leonard, Tom Pawelk, Sara Cahill, Jim Thares, and Jennifer Schreiber 1. Call to Order Mayor Lloyd Hilgart called the special meeting to order at 5:00 p.m. 2. Discussion with Xcel Energy on Data Centers City Administrator Rachel Leonard outlined the purpose of the meeting, explaining that Xcel Energy was asked to provide information about electric power studies and regulation prior to City Council consideration of land use applications related to data center development. In public meetings about data center development there have been recurring questions about power needs and the potential impacts on existing customers. It was noted that the City of Monticello doesn't have authority to regulate electrical power, but the City Council should have a clear understanding of how these areas are regulated in order to make decisions within its authority. Ms. Leonard introduced Xcel Energy representatives Jake Andre and Scott Johnson, who provided an overview of electrical infrastructure planning, regulatory requirements, and customer protections associated with large-scale development, particularly data centers. The presentation addressed concerns raised by the public regarding electrical demand, infrastructure needs, and potential impacts on existing utility customers. Mr. Andre and Mr. Johnson discussed Minnesota's 2025 legislation establishing protections for large electrical users, including data centers requiring 100 megawatts or more. Xcel's proposed tariff, subsequently approved by the Public Utilities Commission (PUC) in May 2026 with modifications, includes protections. These proposed protections include: • Requiring developers to pay all direct electrical interconnection costs. • Establishing a minimum 15-year service commitment. • Requiring payment based on at least 80% of contracted demand. • Imposing exit fees for customers terminating agreements early. • Requiring financial security to protect against unpaid bills. City Council Special Meeting Minutes — October 12, 2026 These measures are intended to ensure that large electrical users are responsible for the costs associated with their projects and minimize financial impacts on existing customers. Council members asked several questions regarding electrical capacity, reliability, utility rates, infrastructure improvements, and the regulatory process for large-scale developments. Xcel Energy representatives provided the following clarifications: Utility Rates and Customer Protections: Minnesota's approved large -load tariff requires data centers and other large electrical users to pay costs associated with their projects. The tariff includes minimum service commitments, financial security, and early termination fees to protect existing customers from additional costs. Electrical Capacity and Reliability: Large-scale developments generally require additional electrical generation and transmission infrastructure. Xcel indicated that extensive planning and regulatory oversight are intended to ensure these developments do not negatively impact electrical reliability or existing customers. Determining Power Needs: Electrical requirements are initially estimated based on the developer's proposed development and anticipated demand. These estimates are refined as projects advance. Requests for additional capacity beyond approved levels require further evaluation. Monticello Tech Project: Xcel indicated that the proposed development was in the Facility Study phase, with preliminary infrastructure costs, design information, and timelines anticipated by the end of 2026. Transmission Lines and Property Impacts: Xcel evaluates potential transmission routes based on existing infrastructure, environmental considerations, and impacts to property owners. The PUC oversees the permitting process, which includes a public comment component, and ultimately decides the location of the transmission lines. Development Timelines: Staff explained that the City's ordinances establish timelines for development approvals and allow developers to request extensions, which the City considers based on applicable requirements and circumstances. Potential Benefits to Existing Customers: Xcel explained that large customers may help reduce overall utility costs by contributing revenue toward shared infrastructure expenses. Infrastructure improvements associated with these developments may also benefit the broader electrical system. Overall, the discussion focused on ensuring that large-scale developments have adequate electrical infrastructure, that existing utility customers are protected from City Council Special Meeting Minutes — October 12, 2026 additional costs and reliability impacts, and that opportunities exist for public input throughout the regulatory process. 3. Adjournment By consensus, the meeting was adjourned at 6:30 p.m. Recorder: Jennifer Schreibe'G I, /viol t City Admini trator IV City Council Special Meeting Minutes — October 12, 2026