HomeMy WebLinkAboutNo 898 An Ordinance Implementing an Electric Service Franchise Fee on Northern States Power Company, D/B/A Xcel Energy for Providing Electric Service within the City of Maplewood
ORDINANCE NO. 898
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 continue 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, memorializing 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 Agreement 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 hereto and made a part of this
Ordinance, commencing with the Xcel Energy March, 2010 billing month. Sixty days written notice to
Xcel Energy of the increase and resolution of intent to modify rates having been accomplished in
December, 2009.
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.
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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. A resolution, passed and certified, of intent to modify rates and proposed
Ordinance was sent sixty (60) days prior to the proposed date of rate modification. Collection of the fee
shall commence as provided in Subdivision 2.
Subdivision 8. Sunset Clause. This ordinance shall automatically sunset on February 28,
2015, 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.
Subdivision 9. Repeal of prior Implementing Ordinance. By adoption of this Ordinance, the
previous implementation Ordinance, numbered 854, passed September 27, 2004, is hereby repealed.
Passed and approved: February 8, 2010.
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SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee, for the purposes of recovering the cost of street lighting, undergrounding, capital
investment and promotion of energy-efficiency programs, 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 $0.75
Small C & I – Non-Demand $1.50
Small C & I – Demand $9.00
Large C & I $67.50
Public Street Lighting $0.75
Muni Pumping –N/D $0.75
MuniPumping – Demand $0.75
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.
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