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HomeMy WebLinkAboutNo 926 Implementing an Electric Service Franchise Fee on Northern States Power Company, D/B/A Xcel Energy, for Providing Electric Services within the City of Maplewood ORDINANCE NO. 926 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 a Franchise Agreement between the City of Maplewood and Northern StatesPower 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 ScheduleA. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on NorthernStates 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, 2013 billing month. This fee isan 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 twoor 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 accordancewith 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 utilitycompany 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 whendue 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 regardingthis 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 above. Subdivision 8. Repeal of Prior Franchise Ordinance.Upon the effective collection date for the new fees pursuant to this Ordinance any existing, prior, Ordinance and fees schedules shall be repealed so as not to conflict with this Ordinance and fee schedule. Passage of this Ordinance shall constitute intent to adopt the revised rates. The Maplewood City Council approved this ordinance on October 8, 2012 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: Rate Classification Electric Franchise Fee Amount Per Premise Residential $ 1.25 Small C&INon-Demand$ 2.50 Small C&IDemand $ 15.00 Large C&I $ 112.50 Public Street Lighting $ 1.25 Municipal Pumping Non-Demand $ 1.25 Municipal Pumping Demand $ 1.25 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.