HomeMy WebLinkAboutOrdinance - 1-2018 - NSP Electric Franchise Fee Ordinance - 01/11/2018 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 1-2018
ELECTRIC FRANCHISE FEE ORDINANCE
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS
SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE
CITY OF EDEN PRAIRIE
THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE DOES ORDAIN:
SECTION 1. The City of Eden Prairie Municipal Code is hereby amended to include
reference to the following Special Ordinance.
Subdivision 1. Purpose. The Eden Prairie 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 Eden Prairie.
(a) Pursuant to City Ordinance 18-2012, a Franchise Agreement between the City of
Eden Prairie and Northern States Power Company, a Minnesota corporation, its
successors and assigns, the City has the right to impose a franchise fee on
Northern States Power Company, a Minnesota corporation, its successors and
assigns, in an amount and fee design as set forth in Section 9.1 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, 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 April, 2018 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.
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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 may allow the utility company to add a surcharge to customer rates to reimburse
such utility 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.
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 ninety (90) days after the sending of written notice enclosing a
copy of this adopted Ordinance to Northern States Power Company by certified mail. Collection
of the fee shall commence as provided above.
Subdivision 8. Repeal of Franchise Fee Ordinance No. 19-2012. Ordinance 19-2012
is repealed effective as of the date of commencement of the franchise fee provided for herein in
April, 2018 as specified in Subdivision 2.
FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the
121h day of December, 2017, and finally read and adopted and ordered published in summary
form as attached hereto at a regular meeting of the City Council of said City on the 2"d day of
January, 2018.
Aanc ra- u ns, ayor
ATTEST:
4�lk
Ka lien Porta, City Clerk
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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 Amount per month
Residential $4.00
Sm C & I—Non-Derr $5.00
Sm C & I—Demand $12.50
Large C & I $55.00
Franchise fees are to be collected by the Utility at the rate listed below, and submitted to the City
on a quarterly basis as follows:
January—March collections due by April 30.
April—June collections due by July 31.
July— September collections due by October 31.
October—December collections due by January 31.
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CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
SUMMARY OF ORDINANCE
1-2018
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE
FRANCHISE FEE ON NORTHERN STATES POWER COMPANY,A
MINNESOTA CORPORATION,ITS SUCCESSORS AND ASSIGNS,
FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OFEDEN PRAIRIE Affidavit of Publication
Summary: The Ordinance implements,commencing in April,
2o18,an electric service franchise fee on the Company for providing Southwest Newspapers
electric energy within the City.The Franchise Fee schedule is:
CM Amndoam 0&
RniamfA
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$ :� Minnesota )
9MC&I—D®a $12_50 )SS.
IaBeC&I 555.90
Effective Date:The effective date of the Ordinance shall be afterof Hennepin
)
its publication and ninety(90)days after the sending of written
notice enclosing a copy of the adopted Ordinance to the Company by
certified mail. utmann, being duly sworn, on oath says that she is the authorized agent of the
Nancy Tyra-Lukens,Mayor
ATTEST::Kathleen Ports,City Clerk he newspapers known as the Eden Prairie News and Lakeshore Weekly News and
ATTEST:
(A full copy of the text of this Ordinance is available from City ,ledge of the facts herein stated as follows:
Clerk.)
(Published in the Eden Prairie News on Thursday,January 11,2018;ispaper has complied with the requirements constituting qualification as a legal
No.3285) -s provided by Minnesota Statute 331A.02,331 A.07,and other applicable laws,as
amended.
(13)The printed public notice that is attached to this Affidavit and identified as No.
was published on the date or dates and in the newspaper stated in the attached No ice and said
Notice is hereby incorporated as part of this Affidavit. Said notice was cut from the columns of
the newspaper specified.Printed below is a copy of the lower case alphabet from A to Z,both
inclusive,and is hereby acknowledged as being the kind and size of type used in the composition
and publication of the Notice:
abcdefghijklmnopgrstuv yz
y:
Laurie A.Hartmann
Subscribed and sworn before me on
this—41~day of 018
JYMME JEANNETTE BARK
� NOTARY PUBLIC•MINNESOTA
Public MY COMMISSION EXPIRES 01I31123
40
RATE INFORMATION
Lowest classified rate paid by commercial users for comparable space...$31.20 per column inch
Maximum rate allowed by law for the above matter...................................$31.20 per column inch
Rate actually charged for the above matter...............................................$12.97 per column inch