HomeMy WebLinkAboutNo 854 Implementing an Electric Franchise Fee on Northern States Power Company, D/B/A Excel Energy for Providing Electric Service within the City of Maplewood
ORDINANCE 854
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES
POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, 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.
Subdivision 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 852, a Franchise Agreement between the City of Maplewood and Northern
States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, the
City has the right to impose a franchise fee on Northern States Power Company, a Minnesota
corporation, d/b/a Xcel Energy, its successors and assigns, in an amount and fee design as set forth in
Section 9 of the Northern States Power Company Franchise and in the fee schedule attached hereto
as Schedule A.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power
Company, a Minnesota Corporation, d/b/a Xcel Energy, 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 Xcel
Energy January, 2005 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.
Subdivision 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.
Subdivision 4. 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.
Subdivision 5. Record Support for Payment. Xcel Energy shall make each payment when due and, if
required 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.
Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will
be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its
publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to
Xcel Energy by certified mail. Collection of the fee shall commence as provided in Subdivision 2.
Subdivision 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. The City Council
may unilaterally renew or extend the fee on the same terms and conditions. Without waiver of any rights under
Minnesota law, the City Council shall seek agreement from Company if the City intends to change the fee rate or
fee design.
SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee, for the sole purpose of recovering the cost of street lighting, shall be in an amount
determined by applying the following schedule per customer premise/per month based on metered service
to customers within the City:
Customer Class Fee Per Premise Per Month
Residential $0.50
Small C & I – Non-Demand $1.00
Small C & I – Demand $6.00
Large C & I $45.00
Public Street Lighting $0.50
Muni Pumping –N/D $0.50
Muni Pumping – Demand $0.50
Franchise fees are to be collected by the Utility at the rate listed below, 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.