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.