HomeMy WebLinkAboutNo 1048 Implementing an Electric Franchise Fee on Northern States Power Company for Providing Electric Service Within the City of Maplewood 1
ORDINANCE NO. 1048
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS
AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF MAPLEWOOD.
THE CITY COUNCIL OF THE CITY OF MAPLEWOOD DOES ORDAIN:
SECTION 1. The City of Maplewood Municipal Code is hereby amended to include reference to the
following Special Ordinance.
Subd. 1. Purpose. The Maplewood 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 Maplewood.
(a) Pursuant to City Ordinance, a Franchise Agreement between the City of Maplewood and
Northern States Power Company, a Minnesota corporation, its successors and assigns, the City
has the right to impose a franchise fee on Northern States Power Company, a Minnesota
corporation, its successors and assigns, as set forth in the Northern States Power Company
Franchise and in the fee schedule attached hereto as Schedule A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power
Company, a Minnesota Corporation, its successors and assigns, under its electric franchise in
accordance with the schedule attached here to and made a part of this Ordinance, commencing with
the NSPM October, 2024 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.
Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance
with the terms set forth in Section 9 of the Franchise.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may
allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of
the fee.
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Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding
this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 6. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its
publication and ninety (90) days after the sending of written notice enclosing a copy of this adopted
Ordinance to NSPM by certified mail. Collection of the fee shall commence as provided above.
Passed and approved: May 28, 2024.
__________________________________
Marylee Abrams, Mayor
Attest:
_____________________________________
Andrea Sindt, City Clerk
SEAL
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SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee shall be in an amount determined by applying the following schedule per customer
premise/per month based on metered service to retail customers within the City:
Class Amount per month
Residential $4.25
Small C & I – Non-Demand $5.50
Small C & I – Demand $30.00
Large C & I $180.00
Public Street Lighting $9.75
Municipal Pumping – Non-Demand $8.25
Municipal Pumping – Demand $10.75
Franchise fees are 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.