The Albert Lea City Council on Monday approved the first reading of a possible 15-year franchise agreement between the city of Albert Lea and Freeborn-Mower Cooperative Services.

The agreement addresses the relationship between the city and Freeborn-Mower Cooperative Services regarding the utility’s distribution system placement within city right of ways, as well as a franchise fee of 4.5 percent of total gross receipts of the co-op’s energy sales. The city uses the franchise fee to support infrastructure needs and administrate the use of the right of way in the city.

The agreement replaces the city’s franchise agreement with Alliant Energy to Freeborn-Mower Cooperative Services. The company completed the acquisition of Alliant Energy’s electric service territory in southern Minnesota earlier this month.

“It’s important for all franchises providing electrical or utility services who are in Albert Lea,” said Albert Lea City Manager Chad Adams. He said it formalizes the agreement with them.

The users of the electrical services provided by Freeborn-Mower Cooperative will pay for the franchise fee.

The agreement will help the city with administrative services in relation to infrastructure improvements, as well as infrastructure improvements themselves, Adams said.

The second reading is planned for Sept. 14. The city will then look at adopting the ordinance.

The city currently has a franchise agreement with Charter Communications, a phone and Internet provider, and Minnesota Energy Resources, a gas provider.