CITY OF GRANT

COUNTY OF WASHINGTON

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 GRANT HEREBY ORDAINS:

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  Grant.

(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  December 31, 2009, unless the City Council acts to renew or extend the fee at least six (6) months prior to the sunset date.

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

 

 

EXHIBIT A

XCEL ENERGY ELECTRIC FRANCHISE

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

 Public Street Ltg $ 2.00

Muni Pumping -N/D$2.00

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.