HomeMy WebLinkAboutNo 931 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 931
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 MAPLEWOODDOES ORDAIN:
SECTION 1. The City of MaplewoodMunicipal Code is hereby amended to include reference to the
following Special Ordinance.
Subdivision 1. Purpose. The MaplewoodCity Council has determined that it isin 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 Maplewoodand
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 9of 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 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 December, 2013billing month.
This feeis 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 9of the Franchise.
Subdivision 4. Surcharge.The City recognizes that the Minnesota Public Utilities
Commission may allow Companyto add a surcharge to customer rates of city residents to reimburse
Company for the cost 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.
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Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding
this ordinance will be resolved in accordance with Section 2.5of the Franchise Agreement.
Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall
beafter its publication and ninety(90) 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.
The City Council approved this ordinance on August 26, 2013.
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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 Monthly Flat Fee Amount Per Premise
Residential $ 1.25
Sm C & I – Non-Dem $ 2.50
Sm C & I – Demand $ 15.00
Large C & I $112.50
Public Street Ltg $ 1.25
Muni Pumping –N/D $ 1.25
Muni Pumping – Dem $ 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.
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