CITY OF
ORDINANCE
NO. 2003-104
AN
ORDINANCE IMPLEMENTING an Electric
FRANCHISE FEE ON NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING Electric
SERVICE WITHIN THE CITY OF GRANT
THE
CITY OF
SECTION
1.
Purpose.The Grant City
Council has determined that it is in the best interest of the City to impose
a franchise fee on those public utility companies that provide electric
services within the City of
(a)Pursuant to City Ordinance No. 2003-____, a Franchise Agreement between the City and Northern States Power Company, d/b/a Xcel Energy, the City has the right to impose a franchise fee on Xcel Energy in amount and fee design as set forth in Section 9.1 of the Xcel Energy Franchise and in the fee schedule attached hereto as Exhibit A.
SECTION
2.Franchise Fee Statement.A
franchise fee is hereby imposed on Xcel Energy under its Electric Franchise
in accordance with the schedule attached hereto and made a part of this
ordinance, commencing with the Xcel Energy's February 2004 billing month.
This
fee is an account-based fee on each premise and not a meter-based fee.In
the event that an entity covered by this ordinance has more than one meter
at a single premise, but only one account, only one fee shall be assessed
to that account.If a premise has
two or more meters being billed at different rates, the Company may have
an account for each rate classification, which will result in more than
one franchise fee assessment for electric service to that premise.
If the Company combines
the rate classifications into a single account, the franchise fee assessed
to the account will be the largest franchise fee applicable to a single
rate classification for energy delivered to that premise.In
the event any entities covered by this ordinance have more than one premise,
each premise (address) shall be subject to the appropriate fee.In
the event a question arises as to the proper fee amount for any premise,
the Company's manner of billing for energy used at all similar premises
in the City will control.
SECTION
3.Payment.The
said franchise fee shall be payable to the City in accordance with the
terms set forth in Section 9.4 of the Franchise.
SECTION4.Surcharge.The
City recognizes that the Minnesota Public Utilities Commission allows the
utility company to add a surcharge to customer rates to reimburse such
utility company for the cost of the fee and that Xcel Energy will surcharge
its customers in the City the amount of the fee.
SECTION
5.Record Support for Payment.Xcel
Energy shall make each payment when due and, if requested by the City,
shall provide at the time of each payment a statement summarizing how the
franchise fee payment was determined, including information showing any
adjustments to the total surcharge billed in the period for which the payment
is being made to account for any uncollectibles, refunds or error corrections.
SECTION6.Enforcement.Any
dispute, including enforcement of a default regarding this ordinance will
be resolved in accordance with Section 2.5 the Franchise Agreement.
SECTION7.Effective Date of Franchise
Fee.Notwithstanding the effective
date of this ordinance and notwithstanding any contrary provisions in the
Franchise, the effective date of the fee collected under Subdivision 2
of this ordinance is the later of ten (10) days after the publication or
after the sending of written notice enclosing a copy of this adopted ordinance
upon Xcel Energy by certified mail.It
has been agreed to in advance by Xcel Energy's representatives that Xcel
Energy will abide by the provisions of this Subdivision 7, provided fee
collection will not commence before the latter of the Company billing month
set forth in subdivision 2 or the first billing month commencing 20 days
after the foregoing effective date of the franchise fee.
SECTION
8.Sunset Clause.This
Ordinance shall automatically sunset on
SECTION
9.This
ordinance takes effect as provided herein.
Upon
roll call, voting AYE: Council members _______________________________________
_______________________________________.
Voting
NAY: __________.
Whereupon
said Ordinance was declared passed and adopted this ____ day of December,
2003.
_____________________________________
Thomas
Carr, Mayor
ATTEST:
Barbara
Bartholdi, City Clerk
FEE SCHEDULE
ClassFee
Per Premise
Residential$2.35
Sm
C & I - Non-Dem$2.00
Sm
C & I - Demand$14.00
Large
C & I$75.00
MuniPumping
- Dem$2.00
Franchise
fees are to be collected by the Utility in the amounts set forth in the
above schedule, and submitted to the City on a quarterly basis as follows:
January
- March collections due by April 30.
April
- June collections due by July 31.
July
- September collections due by October 31.
October
- December collections due by January 31.