Energy users will see an increase in their Xcel Energy bills as the Public Utilities Commission has approved a rate hike.

The commission’s decision includes an interim rate increase for all Xcel Energy customers, raising bills by an average of $5.84. Additionally, the Minneapolis City Council approved an increase to its gas and electric franchise fee, adding about $1 a month to energy bills.

“I don’t think it’s sustainable, right? We’re going to have to figure out a solution,” said Seton McClellan, a Minneapolis homeowner, expressing concern over the rising costs of homeownership.

McClellan also mentioned that property taxes are one of the toughest financial burdens, and now energy bills are becoming more challenging. He worries about the payoff as the bills continue to rise.

“Here’s a tax that I’m paying, and I might not ever get a benefit for it,” McClellan said, referring to the franchise fees used to retrofit homes for energy efficiency.

Despite some opposition, the fee increase passed the council with a 10-3 vote and has significant community support.

Council member Katie Cashman emphasized the importance of addressing climate change. “The cost of not addressing climate change is much greater than the cost that we’re paying right now to try to get ourselves off fossil fuels,” she said.

Cashman also highlighted the benefits for those participating in city programs.

“For those who participate in our city programs and make these upgrades to their homes, their energy bills go way down,” she said.

Over the last two years, 700 homes have been retrofitted in Minneapolis, and the franchise fee is larger for industrial customers.

Ahead of the council vote, Linea Palmisano acknowledged the burden on residents: “Let’s be mindful that this is a significant burden for residents, especially those with lower or fixed incomes,” she said.

A controversial plan addressing homeless encampments, while getting enough votes for approval, may never see the light of day.

The Humane Encampment Response ordinance does and calls for many things, creating a heavy lift for the city of Minneapolis and needs a lot of public dollars — including providing portable bathrooms, hand washing station, needle disposal supplies, and more.

It also sets up a seven-day pre-closure notice and provides free storage, which city staff says alone would cost millions. The ordinance also includes ensuring people have access to services and shelter. 

RELATED: Minneapolis City Council passes housing crisis policies as mayor expedites encampment closures 

“We seek to address the public health and safety concerns,” Aisha Chughtai, one of the three council members, said during Thursday’s city council meeting. “It also ensures that unsheltered individuals are given the basic dignity of time to make plans before a closure.”

Her colleague, Linea Palmisano, was first to express opposition. 

“I don’t know how we could suggest that we keep people in a situation where addiction, violence, trafficking — drug and sex trafficking and child trafficking — how that can be a humane response to encampments,” Palmisano said. 

At the posting of this article, we did not receive a statement from council member Aurin Chughtai, who said she’s supplying one — we asked how she responds to those who feel the ordinance encourages encampments to form and why it does not include steps to address crime that unfolds in encampments.

The one who needs to sign off on the ordinance, Mayor Jacob Frey, is clear on his stance. 

“I intend to veto it,” Frey told 5 EYEWITNESS NEWS, which will be effective as there was not enough support from council members to override it. 

“I don’t know how anybody could argue with a straight face that that is safe, and that’s the right way to do this,” Frey said, adding, “I don’t want to turn back that progress on an ordinance that would essentially make homeless encampments much easier to start open and then much harder to close.”