Slayton, MN – February 18, 2025 – The City of Slayton is excited to announce an agreement with Northwest Natural Gas to purchase the natural gas distribution system serving the City of Slayton. This mutually agreed-upon acquisition will bring local ownership of this vital utility, ensuring reliable and uninterrupted service while keeping rates stable.
Under the terms of the agreement, Northwest Natural Gas will continue to oversee maintenance, operations, billing, and customer support on behalf of the City. Natural gas rates are not expected to increase or decrease as a result of the acquisition, preserving affordability for residents and businesses.
“This acquisition represents an opportunity for Slayton to gain local control over a critical piece of infrastructure while maintaining the excellent service Northwest Natural Gas has provided to our community,” said Josh Malchow, Clerk/Administrator for the City of Slayton. “It is important to note that this is not a city-initiated takeover. Northwest Natural Gas approached the City with this opportunity, making it quite different from the ongoing discussions regarding the electric utility.”
On February 18th, the City of Slayton Council voted unanimously to submit a contested case petition with the Minnesota Public Utilities Commission to determine the compensation to Xcel required for a City purchase of Xcel’s electric distribution system within the City. Unlike that process, this natural gas acquisition was initiated by Northwest Natural Gas, reflecting their mutual desire to ensure a seamless transition and continued quality service.
Rachel Sorrentino, Managing Director of Northwest Natural Gas, added, “We are pleased to work with the City of Slayton on this transition. Our team looks forward to continuing to serve the Slayton community and supporting residents throughout this process.”
Special Election Scheduled for May 13, 2025 The acquisition must be approved by Slayton registered voters in a special election scheduled for May 13, 2025. To ensure transparency and provide an opportunity for community input, the City of Slayton and Northwest Natural Gas will host informational community meetings in March and April. These meetings will allow residents to learn more about the acquisition, ask questions, and share concerns. Specific meeting dates and locations will be announced in the coming weeks.
If voters approve the acquisition, the community will no longer be subject to the existing moratorium on new natural gas hookups for homes and businesses. This change will enable future growth and expanded access to natural gas throughout Slayton.
The City emphasizes that property taxes will not increase due to the acquisition. The natural gas utility will operate as a selfsustaining entity, with all costs, including debt service for the purchase, fully funded through utility revenues.
“This acquisition is an investment in Slayton’s future, giving us local control over an essential service while ensuring it remains financially stable,” added Malchow. “We encourage residents to participate in the upcoming community meetings and make their voices heard in the special election on May 13th.”
