City Council Ordinance 456ORDINANCE N0.456
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
ELECTRIC FRANCHISE FEE ORDINANCE
AN ORDINANCE AMENDING TITLE 8, CHAPTER 7 OF THE CITY CODE,
IMPOSING 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 PURSUANT TO ITS FRANCHISE
THE CITY COUNCIL OF THE CITY OF MONTICELLO, WRIGHT COUNTY,
MINNESOTA, ORDAINS:
TITLE 8, CHAPTER 7 OF THE CITY CODE IS AMENDED BY ADDING THE
FOLLOWING SECTIONS:
SECTION 8-7-13. Franchise Fee. During the term of the franchise granted by Ordinance
No. 455 to Northern States Power Company, D/B/A Xcel Energy, its successors and
assigns (Compan~, and subject to the terms and conditions specified in that Ordinance, in
particular Section 8-7-9, the City hereby imposes on Company a franchise fee determined by
collecting the amounts indicated in the following Fee Schedule from each customer in the
designated Company Customer Class as defined in tariffs filed by the Company with the
Minnesota Public Utilities Commission..
Class
Fee Per Premise Per Month
Residential $ 1.95
Small C & I -Non-Dem $ 5.50
Small C & I -Demand $ 31.00
Large C & I $ 190.00
Public Street Lighting $ 12.00
Municipal Pumping -Non-Demand $ 12.00
Municipal Pumping -Demand $ 31.00
SECTION 8-7-14. Collection of the Fee. The fee is an account-based fee on each
premise and not ameter--based fee. In the event that an entity covered bythis 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 Companys manner of billing for energy
used at all similar premises in the city will control.
SECTION 8-7-75. Payment of the Fee. The franchise fee shall be payable bythe Company
quarterly and shall be based on the amount collected by Company during complete billing
months during the period for which payment is to be made by imposing a surcharge equal to
the designated franchise fee for the applicable customer classification in all customer billings
for electric service in each class. The payment shall be due the last business day of the
month following the period for which the payment is made. No franchise fee shall be
payable by Company if Company is legally unable to first collect an amount equal to the
franchise fee from its customers in each applicable class of customers by imposing a
surcharge in Company's applicable rates for electric service. Company may pay the City the
fee based upon the surcharge billed subject to subsequent reductions to account for
uncollectibles, refunds and correction of erroneous billings.
The Company 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. Company shall make its records available for
inspection by the City at reasonable times.
SECTION 8-7-16. Surc arse. 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 Citythe amount of the fee.
SECTION 8-7-17. Enforcement. Any dispute, including enforcement of a default
regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise
Agreement.
SECTION 8-7-18. Effective Date. The franchise fee shall be become effective after
publication and sixty (60) days after written notice to the Company as provided in the
Franchise, and thereupon collection of the fee for all Customer Classes shall commence at
the beginning of the Company's June 2007 billing month.
Passed and approved: Maruh 12, 2007.
~!"
Mayor
Attest: